MOROCCO Law and Practice Contributed by: Loris Marghieri, Dounia El Aissaoui and Julien Nouchi, Gide Loyrette Nouel
a property located in Morocco will generally be taxable in Morocco under standard conditions. 8.5 Tax Benefits When legal entities subject to corporate income tax, such as companies, own real estate, they may benefit from amortisation (computed on the building book value – no amortisation is author - ised on the land’s value), which is deducted within the cap of the authorised rates, pursuant to the practices of each profession, industry or branch of activity and guidelines published by the tax administration. The recommended rates for the tax deduction of the taxable basis by the tax authorities are 4% for residential or commercial buildings, and 5% for permanently constructed industrial buildings. Furthermore, the main new innovation in real estate ownership is the setting-up of Moroccan REITs (OPCIs), which enjoy the following tax incentives. • Regarding the OPCIs’ upfront capital invest - ment: (a) a deferral ( sursis ) from the tax on capi - tal gains (either individual or corporate income tax) on in-kind contributions ( apport en nature ) of real estate properties for all OPCIs created (permanent regime); (b) taxes on capital gains are paid on the sale of all or part of the OPCI shares; (c) an exemption from registration duties to the tax administration; and (d) 1.5% for registration fees with the Land Registry remain payable. • Regarding the taxation of the OPCI: (a) an exemption from corporate income tax; and
(b) an exemption from taxes on dividend and interests. • Regarding the taxation of shareholders: (a) corporate income tax at the standard rate; (b) taxes on dividends received by individu - als at a rate of 13.75% (for 2023, the rates will change each year until 2026 when the rate will be 10%); (c) taxes on dividends received by non- residents at a rate of 13.75% (for 2023, the rates will change each year until 2026 when the rate will be 10%); (d) capital gains tax for individuals at a rate of 20%; (e) capital gains tax for companies at the standard rate; and (f) an exemption from registration duties to the tax administration. The OPCI may obtain a total exemption from corporate income tax (rental income, capital gain, dividend) if it meets the following condi - tions: • assessment is made by an auditor; • it holds the assets for a minimum of ten years from the date of contribution; and • it distributes: (a) at least 85% of the result of the fiscal year relating to the leasing of buildings built for residential or professional use; (b) 100% of the dividends and shares re - ceived; (c) 100% of the fixed investment revenues received; and (d) a minimum of 60% of the capital gains on the sale of securities.
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