While the postponement of tax payments is available for all micro-, small-, and mid-sized companies, larger businesses will undergo a case-by-case review process.
Rabat – Due to the impact of the COVID-19 pandemic on economic activity, Moroccan companies with an annual turnover equal to or higher than MAD 20 million ($2 million) can request a postponement of their tax payment deadlines, announced Morocco’s General Directorate of Taxes (DGI).
“Companies with turnover greater than or equal to MAD 20 million, which suffer enormous economic damage due to the drastic drop in activity and are faced with financial difficulties, may request … a benevolent measure allowing them to benefit from a deferral or postponement of tax payment,” said the DGI in a statement issued on Friday, March 27.
Benefits are subject to examinations of individual applications, taking into account the reasons justifying each company’s hardship situation and financial difficulties.
Regional officials of the DGI will assess the requests with “particular goodwill and great care, on a case-by-case basis,” the directorate assured business owners.
The announcement enlarges the scope of companies benefitting from the new tax measures adopted by the Economic Monitoring Committee (CVE) to mitigate the impact of the novel coronavirus crisis on the economy.
On March 16, the CVE announced that all companies with an annual turnover of less than MAD 20 million can, if they wish, postpone their tax payment deadlines from March 31 to the end of June.
The new decision will allow larger companies to avoid bankruptcy as well.
Since its launch on March 11, the CVE implemented a series of measures to alleviate the shock of the COVID-19 pandemic and the Moroccan economy and society.
In addition to the tax payment deferrals, the committee suspended the payment of social security contributions and reimbursements of bank loans for the benefit of businesses.
The committee, chaired by the Ministry of Economy, also allocated a budget to financially assist workers whose income-generating activities are currently suspended.
Employees registered under the National Social Security Fund (CNSS) will benefit from a MAD 2,000 ($200) monthly stipend, in addition to family allowances and health coverage.
Meanwhile, workers in the informal sector who cannot practice their activity due to the lockdown will receive compensation through the National Medical Assistance Program (RAMED).
Households of two people or less will receive MAD 800 ($80) monthly, while households of three to four people will receive MAD 1,000 ($100).
Households of more than four members will benefit from MAD 1,200 ($120) monthly.
Workers who are not registered under the RAMED will also benefit from similar stipends, assured the CVE. However, the committee did not yet specify the method of compensation.