The government’s decision to impose a corporate tax on companies with a net income of 100 million is breaking all records when it comes to tax pressure.
With corporate tax rates trending downward in many countries around the world, and economists and analysts accusing Moroccan companies of financial harassment, the comparison of what should be is justified. Measures introduced by the government in the 2023 Finance Bill (PLF) provide for a 31-35% increase in corporate income tax (ITB) for companies with net profits of AED 100 million or more but are already outdated and non-productive. target. All this is extended for the next three years without an additional 5% of social solidarity contributions.
The government wants to “reform” IS in its budget proposal for the fiscal year 2023, aiming to gradually achieve three tax levels by 2026. 20% of companies have a net profit of fewer than 100 million dirhams and 35% of companies have a net profit of fewer than 100 million dirhams. Profit of more than AED 100 million and 40% of financial institutions and similar entities, Bank of Al-Maghrib, Deposit and Management (DAM), insurance and reinsurance companies.
PLF 2023 will also cover SMEs with a net profit of less than AED 300,000, where taxation will be increased from 10% to 20%. Hear that his IS rate has doubled for this category of companies, which make up more than 90% of Morocco’s economic structure, most of which are already struggling to make ends meet.