We offer you a brief summary of the main customs and tax provisions provided for in the draft Finance Law that has just been presented for approval by Parliament.
I- The main customs measures provided for by the draft Finance Law No. 65-20 for the 2021 budget year:
– Clarification of the conditions for benefiting from the transitional clause (Article 13 of the Customs and Indirect Tax Code (CDII));
– Definition of the ship’s docking date as that of arrival of the goods (Articles 49 and 50 of the CDII);
– Acceptance of the Voucher to be issued by the administration (Article 67);
– Updating of the cases of cancellation of the detailed declaration (Article 78 bis);
– Management of goods abandoned in customs (Articles 107 and 109);
– Harmonization of limitation periods (Articles 106, 107, 109, 134 and 181);
– Exclusion of companies specializing in the manufacture of weapons, authorized by the national defense administration, from the scope of application of the prohibitions in the area of RED (Article 115);
– Extension of the benefit of the customs duty exemption for special materials and equipment as well as their parts and accessories and camel meat imported by the national defense administration (Article 164-h and j);
– Application of a minimum import duty of 2.5% on reimported goods, having acquired Moroccan origin, after their transformation under RED (Article 164 bis);
– Introduction of a domestic consumption tax (TIC) on tires even when mounted on rims (Article 182);
– Establishment of a new offence relating to the abuse of the temporary export regime (Article 286);
– Rationalisation of customs litigation (Articles 293 and 294);
– Reduction of the import duty quota from 40% to 2.5% on cycloserine;
– Increase in the import duty quota applicable to fibre intended for padding from 2.5% to 17.5%;
– Increase in the import duty quota applicable to TONER cartridges from 2.5% to 17.5%;
– Increase in the import duty quota applicable to certain finished furnishing fabric products from 17.5% to 40%;
– Harmonisation of import duties applicable to tyres and wheels;
– Increase in the quota of the import duty applicable to certain chocolate products and food preparations containing cocoa from 17.5% to 40%;
– Increase in the quota of the DI applicable to umbrellas, parasols and sunshades other than those for gardens from 2.5% to 40%, and to assembled frames for umbrellas, parasols and sunshades from 2.5% to 17.5%;
– Increase in the quota of the import duty applicable to knitted fabrics from 10% to 40%;
– Increase in the TIC on alcoholic beverages;
– Reduction in the TIC applied to recovered Fuel Oil;
– Introduction of a TIC on heated tobacco products (a TIC of around 1,500 DH per 1,000 gr on heated or reduced-risk cigarettes);
– Coverage of the cost of tax marking in the calculation base of the TIC applied to manufactured tobacco;
– Introduction of a reduced penalty for failure to affix tax marks on products that have already paid the TIC.
II-The main tax measures provided for by the draft Finance Law No. 65-20 for the 2021 budget year
In terms of IS:
1 – Reintroduction of the social solidarity contribution on profits and income for a period of one year during the 2021 financial year.
This contribution will be paid by:
companies subject to IS, excluding:
– Those permanently exempt from IS,
– Companies operating in industrial acceleration zones
– Service companies benefiting from the Casablanca Finance City (CFC) tax regime.
Individuals subject to IR on income:
– Employees and similar.
– Professionals,
– Agricultural
– Land
The contribution will be calculated on the basis of the net profit for the financial year used to calculate the IS, according to the following proportional rates:
2.50% for companies whose net profit is in the range of 5 million to 40 million dirhams;
3.50% for companies whose net profit exceeds 40 million dirhams.
For individuals, the contribution will be calculated at the rate of 1.5% on the basis of the net total income of more than 120,000 dirhams.
2 – The 2021 Finance Bill clarifies the provisions relating to the exclusion of the benefit of the tax advantages provided for companies with CFC status, namely:
– Credit institutions;
– Insurance and reinsurance companies
– Insurance and reinsurance brokerage companies.
In addition, it is proposed that the period of application of the old CFC tax regime ends on 31 December