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Weekly highlights

Reform of Income Tax

Uncertainty for Professional Incomes

F OLLOWING the reforms question remains: Will profes-
of corporate tax and sional incomes benefit from
value-added tax (VAT), this reform? According to tax
which could be adjusted professionals, excluding profes-
again next year, attention is now sional incomes could raise techni-
focused on revamping the income cal challenges. This issue will likely
tax scale. Starting in January 2025, be addressed during discussions
salary taxation will undergo a reor- on the 2025 Finance Bill,
ganization, in line with agreements which must be submitted
reached through social dialogue. to Parliament by October
As part of this process, the Govern- 20.
ment has agreed to a slight reduc- Meanwhile, tax reve-
tion in the tax burden. The monthly nues continue to show si-
exemption threshold will increase to gnificant growth, with an
6,000 dirhams (USD 600), extending overall increase of 13.8% years. By 2026, a unified
the annual exemption from 30,000 compared to the same period last revenues were notably boosted by an 20% rate will apply to all companies
to 40,000 dirhams (USD 3,000 to year, bringing the total to 231.3 bil- 18.5% rise in real estate profits and with net taxable income below 100
4,000), effectively exempting in- lion dirhams (USD 23 billion). This a 20.4% increase in revenue collec- million dirhams (USD 10 million),
comes below this amount. The mar- growth is attributed to the strong ted by the Directorate of Personnel while a 35% rate will target compa-
ginal income tax rate will also be re- performance of various tax catego- Expenditure (DDP), which reports to nies with a net taxable income equal
duced from 38% to 37%, along with ries, both direct and indirect. the General Treasury. Corporate tax to or above 100 million dirhams
an adjustment of the taxable income Income tax (IR) increased by also grew by 12.6%, reaching 55.2 (USD 10 million). Additionally, a
brackets. 13.2% by the end of September billion dirhams (USD 5 bîlion) by 40% rate is reserved for credit ins-
This reorganization, approved 2024, reaching 43.8 billion dirhams the end of September 2024. titutions, the Caisse de dépôt et de
with social partners, will lead to a (USD 4.3) compared to 38.7 billion The 2023 Finance Bill introduced gestion financial institution, as well
monthly gain of up to 400 dirhams a year earlier. Refunds amounted to a comprehensive reform of corporate as for insurance and reinsurance
(USD 40) for middle-income ear- 268 million dirhams (USD 26 bil- tax rates, aiming to provide greater companies. o
ners and will cost the state nearly lion), slightly above the 263 million visibility and stability for investors
5 billion dirhams. However, a key recorded last year. Net income tax through a phased approach over four Khadija MASMOUDI

Electricity/Renewable

Energy Two New Tariffs Soon

T HE National Electricity Re- related to renewable energy and self-
production of electricity from clean
gulation Authority (ANRE)
is preparing to introduce two
sources.
new tariffs to regulate the In this context, Fouad El Cohen, pre-
booming renewable energy market in sident of Amisole/Fenelec, praised
Morocco. These are the Medium Vol- ANRE’s approach and commended its
tage Grid Usage Tariff (TURD) and teams for creating «tariffs that are very
the Distribution Services Tariff (TSD). much in line with Amisole’s expecta-
The first tariff targets self-producers tions.» However, said El Cohen, «We
with production facilities far from must ensure that we don’t over-tax to
their usage zones, as well as develo- maintain the competitiveness of natio-
pers operating under Law 13-09 rela- nal electricity. The TURD and TSD
ting to renewable energy. The second tariffs must therefore be based on real
tariff is for self-producers working services provided to self-producers by
under Law 82-21 on self-production GRDs. It is crucial to avoid turning
of electricity. The two new tariffs, TURD and TSD, will allow operators to sell their «surplus production» to grid managers these tariffs into mechanisms for com-
These tariffs are set to take effect in met with all grid managers (GRD). A the National Federation of Electricity, pensating potential losses for GRDs.»
early February 2025. In the meantime, follow-up consultation meeting with Electronics, and Renewable Energy In other words, Amisole calls for all
ANRE is holding consultations with other stakeholders in the renewable (Fenelec), has also taken place. The GRD service tariffs for self-producers
all stakeholders in the renewable ener- energy sector, including members goal of this inclusive and participatory to be detailed and published. Additio-
gy sector in Morocco. Supported by of the Energy Federation and the approach is to exchange ideas to cla- nally, it proposes that the tax be unified
Deloitte, Abdellatif Bardach, ANRE’s Moroccan Association of Solar and rify and jointly define the best mecha- across the entire national territory. o
president, and his team have already Wind Industries (Amisole), part of nisms for properly implementing laws Aziz DIOUF

Friday 18 October 2024