Is the transfer or the renting of a commercial establishment subject to VAT?
  The transfer of a commercial establishment is a civil operation, and so it is not subject to the application of VAT. The renting of a commercial establishment, for its part, is subject to VAT.

  Are the direct waste products of raw materials subject to taxation?
  They are subject to taxation if the product itself is.

  Is the transfer of stock as a consequence of the transfer of a commercial establishment a taxable operation?
  The transfer of stock carried out within the context of the transfer of a commercial establishment is considered as a sale which is subject to taxation, since the operation is carried out by a taxable person.

  The tax which should be deduced in a determined month has been the object of a subsequent deduction. Is this legal?
  The VAT law does not prohibit this procedure, since it respects the regulations about the deferment of payment, and the deduction is made within the period of the quarterly prescription.

  What is the deadline for presenting the application for a refund?
  The deadline for presenting the refund application is one year.

  What are the different types of VAT declaration?
  The monthly declaration which is made by the contributor whose turnover in one year exceeds one million dirhams, and the quarterly declaration for contributors whose turnover does not exceed one million dirhams.

  What are the VAT tax regimes?
  There are two tax regimes: the cash receipt regime and the debit regime.
The cash receipts regime is the one in which all the partial or total receipts of the price should be declared for VAT. The debit regime is equal to the sum total of the sales or products, with the taxable amount being the one shown on the invoice.

  What are the different VAT rates?
  Normal fixed rate at 20% - Reduced fixed rate at 14% - Reduced fixed rate at 10% - Reduced fixed rate at 7%.

  What are the different tax rates applied in the Corporation Tax?
  Normal rate of 35%. With regard to credit entities (banks...), and insurance brokers, the tax rate is fixed at 39%

  What are the methods of payment of the Corporation Tax?
  The Corporation Tax is paid four times in the form of provisional instalment payments. Each one is equivalent to 25% of the taxable base corresponding to the closed accounting year, called the reference tax year.

  What steps should be taken with regard to the declaration of the tax results and turnover?
  The companies should present a declaration of the tax result drawn up on or according to the printed form supplied by the Tax Department in the local Tax Office of its headquarters, within three months following the closing date of each accounting year.

  What tax treatment is applied to a co-ordination centre established by a foreign company?
  It depends on the regime of common law, its taxable base is equal to 1/10 of the amount of the annual expenses listed under the heading of the running and management of the centre and, if necessary, the result of the extraordinary operations should be added to this amount.

  Can a non-resident foreign company be subject to Corporation Tax in Morocco?
  A non-resident foreign company in Morocco can be subject to tax in Morocco. Your client shares joint responsibility in the payment of taxes.

  Exoneration of minimum contributions
  With regard to the Corporation Tax, Article 15 establishes that companies are exonerated from minimum contribution during the first 36 months after the start of operation.

  What are the prescriptions with regard to the Corporation Tax?
  The recovery period is fixed at 4 years for companies which obtain positive results. For companies with a deficit, the recovery period may go back to the origin of the deficit.

  What are the different GIR tax rates?
  The scale for the calculation of the General Income Tax is established as follows:
- Contributors with an income equal to or lower than 20,000 DAM are exonerated.
- Contributors with an income between 20,001 and 24,000 DAM are taxed at a rate of 13%.
- Contributors with an income of between 24,001 and 36,000 DAM are taxed at a rate of 21%.
- Contributors with an income of between 36,001 and 60,000 DAM are taxed at a rate of 35%.
- Capital gains are taxed at a rate of 44%.

  What is the position of the Moroccan Inland Revenue with regard to the salaries of non-resident workers, working full-time in a project in Morocco, but who are financially covered by the Headquarters on behalf of the stable establishment?
  According to the tax department, they belong to the group of technical assistance and therefore are subject to retention at source and VAT. However, when the said workers remain in Morocco for more than 183 days, whether consecutive or not, during one year, they are subject to GIR.