Rabat – Morocco’s Office des Changes has just released the latest version of the General Foreign Exchange Operations Instruction (IGOC), said to have come into effect on January 2, 2024.
The IGOC 2024 introduces a series of pivotal changes aimed at liberalizing and streamlining the country’s foreign exchange regulations.
One of the most significant adjustments in the IGOC 2024 is the increase in the minimum amount for business travel allowances. The allocation for business trips has been raised to MAD 100,000, ($ 10,000) up from the previous MAD 60,000 ($ 6,000).
In addition, the IGOC 2024 brings about a new era of flexibility for businesses categorized by the Office des Changes.
Notably, provisions for business travel allowances can now be granted to personnel affiliated with Moroccan legal entities, registered branches with the Office des Changes, and individuals associated with recognized associations and cooperatives.
Even when lacking convertible currency or dirham accounts, these beneficiaries can anticipate smoother procedures for settling 100% of their import transactions and depositing 85% of export proceeds in foreign currency or convertible dirhams.
The new instruction extends its reach to the e-commerce sector, ensuring that operators without foreign currency or convertible dirham accounts receive 100% of their corporate income tax (CIT) payment, capped at one million dirhams, as both e-commerce and business travel allowances.
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In order to facilitate international studies, the IGOC 2024 permits the transfer of expenses for language stays abroad, including rent, when mandated by higher education institutions.
Additionally, the updated IGOC allows for the anticipation of study-related expenses during visa application or enrollment, as dictated by universities and/or consular services.
The IGOC 2024 reflects a progressive shift in Morocco’s foreign exchange regulations, emphasizing convertibility. Crafted through a participative and inclusive approach, the new instruction introduces measures aimed at easing the international operations of economic entities.
In addition to the above provisions, the IGOC 2024 allows for an increased average compensation for freight, now at 20% instead of the previous 10% initially stipulated in commercial contracts for the importation of goods.
For international trade operations, the new regulations allow advance payments of up to 50% of the funds returned to the trade account for the same goods transaction.
The updated regulations also allow foreign residents to remit participation fees after paying taxes.
