Promulgated Law relating to the Casablanca Finance City Status
13 Dec 2010
On 13 December 2010, Morocco promulgated Law No. 44-10 relating to the Casablanca Finance City (CFC) Status, which was published in the Official Gazette on 30 December 2010. The CFC Status aims to attract international investments for reinvestment within the Continent and applies to companies operating in financial and non-financial services at either a regional or international level.
Companies registered under CFC status, other than regional or international headquarters, would benefit from (a) an exemption from corporate income tax for a period of five consecutive years following the first year of grant of the status; and (b) a reduced tax rate of 8.75 per cent beyond this period, for all export sales and all net capital gains on movable assets derived from foreign sources and earned in a given fiscal year.
Regional and international headquarters benefiting from CFC status are subject to a 10 per cent tax rate starting from the first year of grant of CFC status. This 10 per cent tax rate shall apply to a taxable basis taking into account the profit or loss incurred. In both cases (i.e., profit or loss), the Finance Act provides for a minimum tax basis amounting to 5 per cent of the headquarters’ operating expenditures.
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Type:
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Promotion and facilitation (Investment incentives)
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Industry:
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Services (Financial and insurance activities)
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Services (Financial and insurance activities)
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Sources:
