Assahafa.com
Morocco’s latest tax amnesty program has collected declarations worth MAD 100 billion ($10 billion) in its final tally, according to Le360 news outlet, marking a significant success for the fiscal measure introduced in the 2024 Finance Law.
The final figures, updated today, show that MAD 60 billion ($6 billion) was declared in cash deposits within the banking sector, while the remaining MAD 40 billion ($4 billion) comprised real estate acquisitions and contributions to partners’ current accounts.
The amnesty program, which concluded on December 31, 2024, imposed a 5% contribution rate on declared amounts, expected to generate approximately MAD 5 billion ($500 million) in tax revenue for the state budget in 2025. Banks are required to transfer these collections to the treasury within the month following the declaration.
The program’s success significantly exceeded initial expectations, with the total declared amount reaching twenty times higher than the 2020 tax amnesty results. The General Tax Directorate had initially targeted declarations of MAD 60 billion ($6 billion), a goal that was surpassed by the cash deposits alone.
The amnesty was implemented in the context of Morocco’s high cash circulation, which reached approximately MAD 426 billion ($42.6 billion) by late October 2024, according to Bank Al-Maghrib data. The declared amount represents nearly a quarter of the country’s total cash in circulation.
The program targeted individuals with undeclared profits and income prior to January 1, 2024. It covered various assets including bank deposits, cash holdings, movable and immovable property not designated for professional use, and partner current account advances or loans granted to third parties.
On the final day of the amnesty, tax administration offices and bank branches witnessed unprecedented crowds of individuals rushing to regularize their tax situation. The alternative to participation would have meant facing a 37% tax rate on undeclared funds starting January 1.
The initiative aligns with Morocco’s broader efforts to strengthen its national anti-money laundering and counter-terrorism financing framework, which recently resulted in the country’s removal from the Financial Action Task Force (FATF)’s grey list.
Source: Morocco word news
