The PLF 2023 adopted by the majority

The Finance Bill (PLF) 2023 has come full circle. It was adopted this Thursday, by a majority at second reading, by the House of Representatives

The PLF 2023 received the support of 102 deputies, while 27 others opposed it and without any abstentions, after its vote in the morning in the Finance and Economic Development Committee in the House of Representatives by a majority, during a plenary session chaired by the vice-president of the Chamber, Mohamed Sabbari. The project was adopted in the first chamber of parliament as it was returned from the Chamber of Councillors, after the approval of a series of amendments which relate, among other things, to the general tax code. In terms of corporation tax (IS), an amendment adopted concerns a tax rate of 35% for companies whose net profit amount is greater than or equal to 100 million dirhams, with the exception of service companies having acquired CFC status or benefiting from the specified regime, and companies operating in industrial acceleration zones.

With regard to income tax (IR), an amendment exempting 36 months from IR for new recruits on permanent contracts under the age of 35 until December 31, 2026 was adopted, in addition to the exemption of donations paid directly to beneficiaries, without the intervention of the employer, of income tax, as well as the reduction of the advance on income tax by lawyers from 300 DH to 100 DH, with the extension of the duration of exemption for new lawyers from advances from 3 to 5 years.

On deductions at source, the rate of tax withheld at source has been revised downwards for legal persons from 20% (initially proposed) to 5%, by limiting this deduction to income paid by the State, Public Establishments and Enterprises, in addition to a withholding tax at source for the remuneration of non-salaried teachers in schools and doctors not subject to professional tax, and the reduction of the withholding tax for contracts of retirement savings insurance from 30% to 15%.

For the auto-entrepreneur status, an amendment increasing the annual turnover for the services provided by the auto-entrepreneur or the taxpayer subject to the single professional contribution regime has been approved, on behalf of from the same client, and whose surplus is subject to income tax by way of withholding at source, from 50,000 DH to 80,000 DH.

Speaking during a plenary session held Monday in the House of Councilors dedicated to the general discussion of the PLF -2023, the Minister of Economy and Finance, Nadia Fettah affirmed that the government has taken a series of measures to face the rise in prices imposed by the current situation, noting in this regard the support of basic materials whose costs are planned at 40 billion dirhams (MMDH) during the year 2022.

She also pointed out that the government has taken bold decisions to preserve purchasing power, especially in this exceptional situation marked by rising prices. She also indicated that our country has succeeded in the management of its public finances, as evidenced by Morocco’s maintenance of its rating assigned by Standard & Poor’s Global Ratings, which ensured the stable prospects of the Kingdom’s financial balances. .

Referring to the conditions for the development of this PLF-2023, she specified that it enshrines the implementation by the government of its commitments of the government program, in accordance with the High Royal Guidelines and the new development model (NMD), noting that this is the first project bearing the political touch of the current government, and reflects its political vision to face the various challenges, the major concern of which is to preserve the purchasing power of citizens, and limit the effects of the inflation imported into their daily lives.

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