PLF2023: 46 out of 210 amendments retained by the Finance Committee

The finance and economic development committee in the House of Representatives adopted by majority on Wednesday evening the first part of the finance bill (PLF) 2023. Out of a total of 210 proposed amendments, 46 were adopted.

The 46 proposals selected mainly concern taxation, in addition to certain customs measures.

IS and IR

These include, among others, income tax (IR) and corporation tax (IS). Regarding corporate tax, set by the PLF 2023 at 20% for companies with a net profit of less than 100 million dirhams and 35% for those with a net profit equal to or greater than 100 million dirhams, the amendment made concerns a new condition to benefit from a corporate tax rate of 20%.

It was therefore decided that to go from a CIT rate of 35% to 20%, the company must have made, over three successive accounting years, a net profit less than or equal to 100 million dirhams.

Regarding income tax, it was decided to exempt severance pay, damages and the amount of voluntary departure, when the corresponding amounts are less than 1 million dirhams.

In addition, the allowance on dividends paid by undertakings for collective investment in real estate (OPCI) abolished in the PLF 2023, has been reinstated as part of the amendments, but has been revised downwards to 40% instead of 60% previously.

In direct relation with the consumer, the committee adopted an amendment relating to the increase from 2.5% to 40% of customs duties for electronic cigarettes and the introduction of an internal consumption tax (TIC) on tobacco hookah equal to 675 dirhams per kilo.

These measures, estimated the representatives of the Nation, aim to preserve the health of consumers, in particular adolescents, and protect them against the harmful effects of the consumption and addiction to these substances.

Also included in the amendments is the taxation of sugar which will now include drinks containing 10% or more fruit juice. A TIC of 12.5 dirhams per 100 grams is thus established.

Taxation of lawyers

After a period of arm wrestling, the government and the lawyers’ corporation finally reached a compromise. It was therefore agreed (and adopted by the committee) to delete article 20 of the PLF.

In this respect, lawyers newly registered with the bars are exempt from income tax during the first 36 months of their professional practice, just as cases submitted under article 148 of the Code of Civil Procedure are exempt from all taxes. , as well as those of proximity, labor disputes, as well as accidents at work until the execution of the judgment.

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