On 18 December 2020, the Ministry of Finance of Morocco has published the Finance Law for 2021 in the Official Gazette, apply from 1 January 2021.
Morocco’s Finance Law 2021 introduced new transfer pricing (TP) documentation requirements. The TP documentation must be submitted within 30 days of request by companies carrying out transactions with related companies outside Morocco, where the company’s turnover is equal to or more than MAD 50 million; or the company’s total gross assets in the balance sheet at the end of the financial year concerned is equal to or more than MAD 50 million.
The Finance Law 2021 also introduced new documentation penalties for failing to submit documentation, which is equal to 0.5% of the relevant controlled transactions for which documentation has not been submitted, with a minimum penalty of MAD 200,000 per year.
