To deal with the COVID 19 pandemic, the government decided to put in place a state of health emergency and containment measures. As a result of this decision, several Moroccan companies found themselves in a situation of reduced activity or at a standstill.

In order to support the Moroccan companies affected by these measures, the Moroccan government has put in place several measures, in particular via the Economic Monitoring Committee.

The firm BAKERTILLY MAJER, an accounting, auditing and consulting firm, presents the main economic measures taken to support companies in difficulty.

The links to download the presentation and the video of the webinar organized on May 07, 2020, in collaboration with the Spanish Chamber of Commerce of Tangier :

BAKERTILLY_ COVID 19_ Mesures économiques prises pour soutenir les entreprises en difficulté

https://drive.google.com/file/d/1udn0k3pGxxDoioGzuhml8zlXjY5SfTkk/view

Dear clients,

During these challenging times, our focus is very much on supporting you in the here and now, however, we also continue to build our network and position ourselves to accompany your business when we emerge from this situation.

Meeting the challenges of tomorrow’s world and facing the new requirements of globalisation to move onwards and upwards with our clients, has always been our greatest concern.

This is what made the success of our firm during the past years, but it is also why our company had to transform itself and give itself greater means to accompany your growth and your ambitions.

We chose to join Baker Tilly, global providers of assurance, tax, consulting, and advisory services, ranked among the world’s top 10 branded networks.

With more than 36,000 people, in nearly 800 offices, across 146 territories and a total revenue of $3.9B for 2019, Baker Tilly firms serve clients of every sector and size who look to them for the insights needed to accelerate their growth.

We will be writing a new chapter in our history and we need to illustrate it. We have therefore decided to adopt our network’s name, to support our local reputation while consolidating our global reach. Starting April 20th, Majer will be named Baker Tilly Majer.

Have we been bought out? No, we have joined an independent, member led, global network that will allow us to become stronger and more knowledgeable on international issues to help you tackle the complexity of your problems. We will also be able to learn about the new demands of globalisation to better serve you, when required, in your quest for growth.

Are we changing? Your experience with Majer will not change.  Our independence will remain intact, the teams will be the same; it’s the horizon that is expanding. Our support and advice can only get stronger and far reaching. If we are developing our skills internationally, it is precisely so that we can offer all of our clients, from small local businesses to large international groups, new opportunities, insights and solutions.

Our DNA is unchanged, being attentive to clients and precise in our answers.  Baker Tilly member firms are part of a growing global network, driven to succeed and committed to excellent client service.  We share a common ambition — to provide the insights our clients need now, to accelerate growth, to prepare for tomorrow’s challenges and to seize tomorrow’s opportunities.

We would like to thank you, dear clients, for your ongoing trust.

To visit our new website: http://www.bakertilly.ma/

For more information on Baker Tilly: https://www.bakertilly.global/

Methods of implementation of the second measure taken by the CNSS following COVID 19

Deferral of social security contributions with free remission of late payment surcharges

The CNSS has put in place the second measure taken by the economic intelligence committee, which is to suspend and defer the payment of dues for the period from March 1 to June 30, 2020 with the graceful remission of late payment increases. (the payment of these dues is thus postponed to the end of the above-mentioned period, without any late payment penalty).

The CNSS has integrated the modalities for this measure into the portal. You should go to the site “covid19.cnss.ma” where the CNSS has added a new functionality. Employers, whose activity is impacted by the Covid-19 pandemic, and wishing to benefit from the measure must submit, before each due date (i.e. before the 10th of each month following the due month) for the entire period, a request for deferral “.

The new interface incorporates an (electronic) declaration of honour. The affiliate must formulate his request to defer payment of contributions by ticking the “Declaration on honour” box on the covid19.cnss.ma portal, certifying his state of financial difficulty caused by the Covid pandemic – 19″. The deadline will be open until 30 June 2020.

“The agreement of the rebate will be made automatically as soon as the payment of the totality of the contributions has been established before the 8 month deadline following the date of declaration of the end of the health crisis.”

Today 24 March 2020, press release on the tax site clarifies the deferral of tax returns that can now be considered confirmed and applicable.

Declarations concerned :
Only the following declarations are deferred

  • The declaration of the fiscal result (balance sheet and its annexes);
  • The additional corporate income tax due for the financial year 2019;
  • The first instalment due for the current year.

The other declarations (VAT, withholding tax on salaries, dividends, interest, royalties, etc.) for which the companies are simple intermediary collectors must be filed and paid.

Firms concerned :

  • Deferral without formalities: companies whose declared turnover for the 2018 financial year is less than MAD 20 million, can, if they wish and without formalities, benefit from the deferral of tax declarations and tax payment from March 31 to the end of June.
  • Postponement with agreement: companies whose turnover is equal to or greater than MAD 20 million, which suffer enormous economic damage due to the drastic decline in activity and are faced with financial difficulties, may request from the Minister of Finance or the person delegated by him for this purpose, a benevolent measure allowing them to benefit from a deferral or postponement of tax payment. The benefit of these benevolent measures is subject to an individualized examination of the requests, taking into account the circumstances invoked and the elements justifying the situation and the financial difficulties of each company.

Implementation of measures undertaken by the National Social Security Fund (CNSS) as a response to Covid-19
The CNSS has announced  Friday, March 27th ,the implementation of support measures for companies in difficulty. These measures intend to help employees but also companies:

  1. For the benefit of employees on temporary interruption of work : Granting of a net lump-sum indemnity of 2,000 DHS to all employees declared to the CNSS in February 2020, in addition to family allowances and AMO benefits, for the period from 15 March to 30 June 2020.  (subject to conditions detailed below);
  2. For the benefit of companies: An exemption from employer’s contributions and professional training tax for companies that undertake not to reduce their workforce, declared in February 2020, by more than 20% for the period from 15 March 2020 to 30 June 2020. (under conditions not yet defined) ;

The practical arrangements for the implementation of the first measure are described below. As for the second measure, we are still waiting for more details on the conditions for its applicability.

Eligibility :
Employees, in temporary interruption of work declared to the CNSS for the month of February 2020, which fall under the responsibility of employers in difficulty, affiliated to the CNSS.

Methods of implementation :
The CNSS has announced the availability to employers of an electronic portal “covid19.cnss.ma” dedicated to the submission of claims in order to benefit from the allowance during the period from 15 March to 30 June 2020.

  • If the employer is a member of the DAMANCOM portal, the system will prompt the employer to enter the DAMANCOM portal login and password;
  • If the employer is not a DAMANCOM member, the portal will assist the employer in creating an account. He will receive his login and password by e-mail;

The portal will present to the employer the list of employees declared for the month of February 2020.
The employer will have to select the employee on temporary cessation from this list and will have to formalise on the portal its declaration on honour certifying that the total or partial cessation of its activity is induced by the Covid-19 Coronavirus pandemic;
The employees selected on the list will receive the allowance at the end of each month of the period concerned and will benefit from the Family Allowances and the AMO, by bank transfer or by provision. The allowance from 15 to 31 March 2020 is set at MAD 1,000.

It is recommended to :

  • Carry out the tele-declarations of the salaries of all your employees before the end of each month and not before the 10th of the following month.
  • Transfer the tele-declarations after the validation
  • Declare employees on temporary cessation of activity at the end of each month with Maintenance without pay, from the month 04/2020 and until the end of the crisis,

Verification of eligibility :
The CNSS verifies that these employees did not returned to work (no declaration to the CNSS).
The payment of the allowance of March 2020 will not be conditioned by this verification.

Measures not yet official
First of all, it should be remembered that despite the numerous announcements and publications on this subject, there is no official text from the Tax Administration authorizing the postponement of declarations and payments. As a precautionary measure, we therefore recommend that for the time being you comply with the reporting obligations as at 31 March 2020 (PIT, CIT,  CIT Advance payments, etc.). We describe below the exact legal situation and the remaining grey areas.

Measures announced by the Economic Intelligence Committee
In view of the exceptional situation caused by the spread of the coronavirus pandemic, the Economic Watch Committee (CVE) chaired by the Minister of the Economy and Finance following its meeting on 19 January, decided to introduce a series of easing measures in favour of companies, SMEs and the liberal professions in difficulty. These measures include, inter alia, the possibility of postponing the filing of tax returns until 30 June 2020 for companies whose turnover for the 2019 financial year does not exceed 20 Millions of Moroccan dirhams, as well as the suspension of the payment of social security contributions until 30 June 2020. All the measures taken by the CVE are published on the website of the Ministry of Finance, for more information see the following link https://www.finances.gov.ma/fr/Nos-metiers/Pages/news-dispositions-cve.aspx.

We remind you that the measures announced do not have the force of law.

Decree-Law of 24 March 2020
Moreover, today, 24 March, the decree-law on the state of health emergency was published in the Official Gazette (attached the copy in Arabic, the only one available at the moment). Article 6 of the said decree stipulates that all the time limits provided for in the laws and regulations in force are suspended until the state of health emergency is lifted (i.e. 20 April 2020, unless extended). The only exception provided for by the provisions of the said article concerns the time limits for appealing to the Court of Appeal for persons prosecuted while in detention, as well as the periods of police custody and preventive detention.

Our reading and position of the Order of Chartered Accountants
According to our reading of the decree, all tax deadlines provided for in the CGI should be suspended since the aforementioned article does not provide for any exception to the provisions of the CGI. Nevertheless, this contradicts the CVE’s communiqué which provided for the possibility of deferring tax returns only for companies whose turnover does not exceed 20 MMAD (without specifying whether the suspension also concerns advance payments and other tax payment obligations).
This ambiguity led the Order of Chartered Accountants to refer the matter to the DGI as a matter of urgency in order to clarify the provisions of Article 6 of the abovementioned decree.

Consequently, we are of the opinion that it is more prudent to respect the filing and payment deadlines provided for by the CGI until the publication of an explanatory note by the DGI taking into account the current circumstances.

We remain at your disposal for any further information you may require.