What the CGEM recommends

Aware of the budget supported by the State, for the ongoing deployment of certain essential projects for the socio-economic development of our country, the President of the General Confederation of Moroccan Enterprises (CGEM), Chakib Alj expressed the employers’ recommendations for the 2023 Finance Bill.

In Casablanca, the group of bosses of Morocco unveiled its expectations for the 2023 finance bill after a health crisis linked to Covid-19 which has damaged several sectors. Four main areas are thus exposed by the CGEM and revolve around the reduction of the tax burden through the stimulation of private investment, the strengthening of the cash flow of companies, the improvement of their competitiveness or the fluidification of process and the relationship with the Administration.

The private sector expects a lot from this finance bill, which should also contribute to the dynamics of promoting private investment and support the deployment of the Investment Charter under the leadership of King Mohammed VI.“, supported the president of the CGEM.

Aware of the major social and economic projects in which the State has embarked and which require colossal budgets such as the project to generalize medical coverage, Chakib Alj insisted on broadening the tax base through the integration of the informal sector, noting that only 2% of economic operators pay the IS, and it is always the same companies that pay the taxes.

In this sense, the CGEM has unveiled its proposals which revolve around the 4 axes mentioned above. With regard to the stimulation of private investment, the CGEM recommended continuing the reduction of corporate tax (IS) for industrial companies and the initiation of those in other sectors, calling, by 2023 , the reduction of the rate to 24% for industrial companies whose net tax profit is less than or equal to 100 million DH and the reduction to 28% for companies in other sectors whose net tax profit is less than or equal to 100 million dirhams.

In this same section, employers recommend renewing the 70% reduction on capital gains from asset disposals for next year while reducing the asset holding period from 8 to 5 years, for more flexibility. , and the extension of the system to land assets and dormant buildings (outside the fields in 2022) with management of the system.

It is also a question for employers to improve the neutrality mechanisms for group restructuring operations as well as the extension of the exemption from registration fees to all assignments of inter-company receivables.

Concerning the strengthening of companies’ cash flow, the CGEM proposes in this area the continuation of the reduction of the minimum contribution with a view to its abolition by 2025, with the achievement of the rate of 0.3% for next year. .

For the sectors strongly impacted by the health crisis such as tourism or transport, the CGEM proposes to grant, on an exceptional basis, a payment exemption or a ceiling at 100,000 DH for 2023, and recommends in parallel the initiation of the reform of the VAT, with that of the reorganization of the 5 rates, the redefinition of the field of application and exemptions, the generalization of the right to deduction and refund and finally to record the non-renewal of the social contribution of solidarity, become a taxation “permed” assimilating to the IS.

In order to improve the competitiveness of companies and promote Made in Morocco, employers recommend initiating a reform of local taxation, with the pilot project being the overhaul of business tax and the tax on communal services, which revealed an inequity between owners and tenants burdening any Sale & Lease-back operation.

For the promotion of Made in Morocco, the CGEM proposes to rationalize the taxation of imported inputs, but also to give the possibility to national producers to obtain supplies at costs comparable to the costs of competing international operators.

Still in this aspect of improving the competitiveness of companies, the CGEM recommends initiating the reform of wage taxation through the revision of the brackets of the income tax scale, the deduction of tuition fees from the base as well as that the renewal of the exemption of IR of 36 months for any young recruit within the framework of a CDI.

There is also a question of revising the mechanism for calculating the TIC on polluting products for the application of the principle of proportionality. But also the clarification of the earmarked revenue fund, while revising the taxation of demurrage, expressly excluding demurrage from the application of the RAS.

Finally, in its last axis which concerns the fluidification of the processes and the relationship with the Administration, the CGEM proposes to revise the policy of recovery of public debts, with in particular the digitalization of the making of contact, the reform of the system of sanctions by modulating it according to the seriousness of the offense and finally the clarification of the materialization of the oral and contradictory debate in addition to the principle of the single notification for any tax control.

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