The Directorate General of Taxes (DGT) in Morocco has announced that companies that have reported no revenue or have only made the minimum contribution for the past four fiscal years, and wish to cease their operations permanently, will be eligible for tax audit exemptions. Additionally, any sanctions related to the failure to submit declarations and pay taxes for non-prescribed financial years will be automatically canceled.
To facilitate this process, these companies are encouraged to electronically submit a declaration of complete cessation of activity for the year 2023. Alongside this declaration, they are also advised to voluntarily remit a lump sum of 5,000 Moroccan dirhams in corporate tax or income tax, as applicable, for each non-prescribed financial year. These guidelines have been clarified in a press release issued by the DGT.
In addition to the aforementioned steps, these companies are encouraged to engage with the tax service affiliated with their operations by presenting any documentation that can justify their removal from the commercial register. This documentation serves as crucial evidence to support the cessation of their business activities. Furthermore, they should submit a formal request for the removal of professional tax obligations.
This collaborative effort between the companies and the tax authorities aims to streamline the process of permanently ceasing operations while ensuring compliance with tax regulations. It underscores the commitment to transparency and adherence to legal procedures, allowing businesses to conclude their activities smoothly within the fiscal framework.
The comprehensive details of this measure can be found in Circular Note No. 733, which has been published on the DGT portal. This circular serves as a valuable resource for companies seeking to understand and comply with the outlined procedures for the permanent cessation of their activities while navigating tax-related considerations.