MOROCCO Law and Practice Contributed by: Loris Marghieri, Dounia El Aissaoui and Julien Nouchi, Gide Loyrette Nouel
agencies, or utility suppliers, in order to facilitate a development project. 4.7 Enforcement of Restrictions on Development and Designated Use Failure to comply with the applicable building and planning regulations may result in: • closure of the site in the absence of a valid building permit; • the obligation to modify the building to bring it into compliance with the regulations in force; or • the obligation to demolish the construction work. In all cases, the offender is liable to a fine of between MAD1,000 and MAD100,000. In addition, anyone who continues to operate a project despite being notified of the closure of the site may be punished by imprisonment of between 15 days and three months. 5. Investment Vehicles 5.1 Types of Entities Available to Investors to Hold Real Estate Assets Real estate assets may be purchased by either natural individuals or legal entities. Companies usually possess substantial or valuable assets, with the most popular corporate forms including: • the joint stock company ( société anonyme – SA) governed by Law No 17-95 (as amend - ed); • the simplified joint stock company ( société par actions simplifiée – SAS) governed by Law No 5-96 (as amended);
• the limited liability company ( société à responsabilité limitée – SARL) governed by Law No 5-96; and • the real estate civil company ( société civile immobilière – SCI) governed by the Moroccan Obligations and Contracts Code. Law No 70-14 dated 24 August 2016 introduced REITs, known as Organisme de Placement Col- lectif Immobilier (OPCI) into the investment legal framework. Please see 5.3. REITs below. 5.2 Main Features and Tax Implications of the Constitution of Each Type of Entity All types of companies are subject to corporate income tax (CIT) in Morocco. The finance bill for 2023 modified the CIT rates, reducing them with the aim of reaching a flat rate of 20% for financial years beginning January 2026 onwards. Com - panies whose profits exceed MAD100 million, for whom the CIT rate will be 35%, and licensed banks and insurance companies, which will pay CIT at a rate of 40%, are the sole exceptions. The following rates apply/will apply to the net income (including rental income): • under MAD300,000 – 15% in 2024, 17.5% in 2025 and 20% in 2026 (and beyond); • between MAD300,000 and MAD1 million – 20% in 2024 (and beyond); • between MAD1 million and MAD100 million – 22.5% in 2024, 22.75% in 2025 and 20% in 2026 (and beyond); and • over MAD1000 million – 33% in 2024, 34% in 2025 and 35% in 2026 (and beyond). Joint Stock Company (SA) A joint stock company (SA) is a form of limited liability company where each shareholder’s lia - bility is, in theory, restricted to the amount of its contributions to the company. A minimum of
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