Prior to the finance act for FY2020, companies engaged in outsourcing services were granted the following tax benefits for their export turnover:
- Total exemption from the CIT (Corporate Income Tax) for a period of 5 consecutive years starting from the fiscal year in which the first export transaction was carried out;
- And taxation at a progressive scaled rate capped at 50% beyond this period.
The Moroccan finance act for FY2020 amended the tax regime applicable to companies engaged in “Offshoring” activities in the aim of standardizing applicable tax rates regardless of the destination of outsourcing services (local and export turnover):
This new regime applies to companies carrying out outsourcing services, whether inside or outside integrated industrial platforms, and benefit from:
- Total exemption from CIT for the first five consecutive fiscal years starting from the date of commencement of their operation;
- And taxation at progressive scale rates capped at 20%, beyond that period.
This new tax regime applies to companies carrying out outsourcing services activities for fiscal years beginning as of January 1st, 2020.
Articles 6 (II-B-4°) and 19 (I-A-9°) of the Moroccan Tax Code.
Written by Ali SALIM Manager TAX