Where have the tax reforms gone in the 2023 finance law?

The Court of Auditors has warned against the delay observed in the reform of income tax (IR) and value added tax (VAT), although their reform is stipulated in the framework law relating to the tax reform, which sets the implementation deadline for the period 2023-2026.

The Court of Auditors, chaired by Zineb El Adaoui, declared in its report for the year 2021 that the 2023 finance law did not provide for measures related to the revision of the scale to increase the rate of tax on the income (IE) as stipulated in the framework law, similar to the corporation tax (IS), in order to clarify the vision about this reform.

With regard to value added tax (VAT), the same council considered that the reform of this tax has not yet taken on its true dimension. He recalled that the 2022 finance law provided for measures to improve the incentive system and other corrective or appropriate measures, and that the 2023 finance law proposed to unify the tariff applied to the liberal professions at 20% instead of 10%.

Corporate tax has been the subject of several modifications within the framework of the finance laws, the progressive scale of prices having been abandoned, in particular the reduction of the marginal price from 28% to 26% for industrial companies whose profit net is less than 100 million dirhams, and the reduction of the minimum tax rate from 0.50% to 0.40% in favor of companies which declare a positive current result without calculating depreciation.

In the 2023 finance law, the current corporate tax (IS) rates have been revised with the aim of gradually reaching the target rates of 20% for companies whose net profit is lower within four years. to 100 million dirhams, and 35% for companies whose net profit is equal to or greater than 100 million dirhams.

In the same report, the Court of Auditors underlined that there are a number of risks that could result from the increase in the target corporate tax rate, which is set from 20% to 35% for companies whose the net profit exceeds the threshold of 100 million dirhams.

In this sense, the report indicated the incompleteness of the aspects related to the revision of the rules relating to local authority levies and parafiscal charges provided for in the framework law on tax reform, and also warned that a vision n has not been developed about them to clarify the methods and deadlines for their implementation.

In this regard, the Court of Auditors recommended the implementation of the income tax and value added tax reform, setting a timetable for this reform similar to that of corporation tax. , and by communicating on the impact of updated or scheduled changes on the budget, as well as with regard to local authority levies and parafiscal charges.

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