INVESTING IN MOROCCO
INCOME, TRANSFER, LIQUIDATION AND DEVESTMENT UPON DEATH
Income, proceeds from the disposal or liquidation of foreign investments, and funds derived from the inheritance of foreign investments in Morocco, comprise:
- Revenue generated by foreign investment in Morocco:
- Dividends or shares of profits distributed by companies incorporated under Moroccan law;
- Profits made by the Moroccan branches of foreign companies;
- Rental income;
- Interest earned on related loans and advances on partners’ current accounts;
- Interest earned on debt securities;
- Directors’ fees;
- Interest earned on fixed-term deposits.
- Proceeds from the disposal or liquidation of foreign investments in Morocco;
- Repayment of the principal amount of advances drawn on partners’ current accounts and related loans taken out in foreign currencies in accordance with the provisions in force;
- Funds payable to non-resident beneficiaries in respect of the estate of a foreign national or a Moroccan resident abroad.
Terms of payment
Payments (see Documents to be provided), for the benefit of foreign investors and Moroccans residing abroad, in respect of income, proceeds from disposal or liquidation, and funds arising from the devolution of an estate relating to foreign investment in Morocco, must be made in accordance with the provisions in force (transfer abroad, credits to accounts in foreign currency or convertible dirhams, international postal orders, etc.), where the investment is covered by the convertibility regime.
If the investment that has been sold or liquidated does not qualify for the convertibility scheme, the proceeds in dirhams – once proof has been provided of payment of all taxes and duties and any other costs due in respect of the transaction in question – must be made available to the Moroccan expatriate seller.
These are the documents that must be provided to the bank before payments are processed.
Revenue generated by foreign investment in Morocco:
Dividends and profit shares
- The balance sheets and profit and loss accounts (P&L) for the financial year in respect of which the refund is claimed, certified by the tax authorities or accompanied by the receipt confirming the electronic filing of tax returns;
- The minutes of Ordinary General Meetings or decisions by the sole shareholder, bearing a certified date, which resolved to distribute dividends and setting out the amount of dividends distributed;
- A list of foreign shareholders or Moroccan shareholders residing abroad, specifying their identity, nationality, address and the number of shares held by each;
- Proof of payment in foreign currency or convertible dirhams for foreign investment transactions by resident foreigners and Moroccans living abroad.
Operating profits of branches of foreign companies
- The balance sheets and profit and loss accounts for the financial year in respect of which the refund is claimed, as certified by the Tax Authorities;
- Statement of non-accounting adjustments made to arrive at the taxable profit.
Rental income
- The title deed for the property that is the subject of the tenancy;
- The tenancy agreement, bearing a definite date, covering the period for which rent is to be transferred and specifying the amount of the rent;
- Proof of payment of taxes and duties for the year n-1.
However, where the owner of the property being let holds a foreign currency account or a convertible dirham account in Morocco, the bank is authorised to credit their foreign currency account or convertible dirham account with the amount of rent specified in the contract, upon the owner’s presentation of the certificate of ownership of the let property and the tenancy agreement. Proof of payment of taxes and duties for each year must be submitted to the bank by the end of April of the following year.
Maturity dates for related loans and advances on shareholders’ current accounts (principal and interest)
- Documents evidencing the repayment of the loan or advances from partners’ current accounts;
- The loan agreement or the agreement relating to the shareholder’s current account advance, setting out the repayment schedule and specifying the interest payable, where the loan or current account advance bears interest;
- Proof of payment in foreign currency or convertible dirhams for foreign investment transactions.
Attendance fees
- A list of foreign directors or Moroccan directors resident abroad, setting out their names, addresses and the gross and net amounts paid to each of them;
- The minutes setting out the total amount of directors’ fees allocated to the board of directors for the relevant financial year.
Proceeds from the disposal or liquidation of foreign investments made in Morocco
- Proof of payment of taxes and duties due in respect of disposals or liquidations;
- Proof of payment for the foreign investment transaction;
- Documentation confirming the completion of the sale or liquidation of the following investment:
- For securities: copies of the transfer deeds for the securities sold, showing the sale price and bearing a certified date;
- For immovable property: a copy of the deed of sale;
- For the clearance item:
- Minutes of the Extraordinary General Meeting or decisions of the sole shareholder bearing a certified date, setting out the net proceeds to be distributed and confirming the closure of the liquidation, or copies of the court order declaring the closure of the liquidation;
- Liquidation accounts duly certified by the tax authorities;
- Report by the liquidator setting out the net proceeds to be distributed;
- Proof of residence abroad;
- Evidence of the deposit and repayments of loans in foreign currency.
The branch registered with the Foreign Exchange Office must also provide a copy of its tax clearance certificate and a certificate from the CNSS confirming that it is in good standing with that organisation.
Inheritance (in favour of non-resident beneficiaries)
- A duly drawn up notarial deed of succession;
- Copies of proof of payment in foreign currency for the property and assets forming part of the estate;
- Proof of residence abroad.
