Export in Morocco: Complete Guide to Tax Advantages for Your Business

Morocco's Export Landscape: A Strategic Advantage

Morocco has firmly established itself as a dynamic hub for international trade, driven by proactive government policies and strategic positioning. The country's commitment to fostering exports is evident through enhanced logistics, production platforms, and attractive tax incentives. Understanding these advantages is crucial for businesses aiming to expand their global reach.

Navigating Export Regulations in Morocco

Before delving into the tax benefits, it's important to grasp the fundamental regulatory framework for exporters in Morocco.

• Commercial Registration: To engage in export activities, obtaining a commercial register is mandatory. Whether you opt for startup legal status creation or register as an individual merchant, this is the foundational step.
• Customs and Exchange Control: Adherence to customs procedures and exchange control regulations is paramount. For any legal guidance or resolution of disputes, expert legal advice and dispute resolution services can be invaluable.
• Product Homologation: For goods destined for export, homologation by the Autonomous Establishment for Export Control and Coordination (E.A.C.C.E) may be required to ensure compliance with international standards.

Exporters are generally categorized into three types: industrial manufacturers, packaging exporters, and trading exporters. However, from an accounting, fiscal, and exchange control perspective, service exporters are also included in these regulations.

Exchange Control Obligations for Exporters

Moroccan exchange regulations, particularly Article 63 of the General Instruction of the Exchange Office, define export as any shipment of goods abroad or to an export free zone. A key obligation is the full repatriation of export proceeds to Morocco, as stipulated by Article 65 of the same instruction. This applies equally to both goods and services and requires a detailed sales breakdown for each operation.

Corporate Income Tax (IS) Benefits for Exporters

The corporate income tax advantages vary depending on the nature of the export activity.

Tax Benefits for Service Exporters

Since 2020, the blanket five-year IS exemption for service exporters has been removed. These companies are now subject to the standard IS rates (20% or 35% for net profits ≥ 100 M MAD) from their first year of operation.

However, a significant advantage remains for companies engaged in service outsourcing activities. As per Article 6-II-B-4 of the General Tax Code, these companies benefit from a total IS exemption for the first five consecutive financial years, starting from their operation date. Following this exemption period, they revert to the standard tax rates.

Tax Benefits for Goods Exporters

Industrial companies exporting goods enjoy a total IS exemption for the first five consecutive financial years from the start of their operations. Notably, since 2017, this five-year exemption has been generalized for industrial companies, meaning the export condition is no longer strictly necessary for this specific benefit. Other non-industrial activities, such as trading exporters, are subject to the standard IS rates.

Value Added Tax (VAT) and Export Operations

Article 92 of the Moroccan General Tax Code confirms that export operations are VAT-exempt with the right to deduction. This means exporters can recover the VAT paid on their purchases, offering a substantial cash flow advantage.

• Conditions for Service Exports: For services, three conditions must be met: the service must be used or exploited outside Morocco, invoiced to a foreign entity, and paid in foreign currency.
• Justifications for Goods Exports: For goods, exporters must provide supporting documents such as transport titles, manifests, bulk sheets, or customs receipts.

Furthermore, both goods and service exporters are entitled to claim VAT refunds on VAT incurred on their purchases. For meticulous tracking and processing of these refunds, ensuring robust bookkeeping services is essential.