Answer ... The Moroccan General Tax Code provides for anti-avoidance measures.
Answer ... Provisions aimed at avoiding base erosion and profit shifting.
Answer ... The main anti-avoidance rules allow the Moroccan tax authorities to reject certain transactions which are of a fictitious nature and are aimed solely at achieving tax benefits or at evading tax or reducing the tax amount. The tax authorities can also reject certain transactions carried out between affiliated companies.
Answer ... Taxpayers can ask the tax authorities to rule on the tax regime applicable to their specific situation in light of the legislative provisions. Such a request may be made in relation to the following:
- legal and financial arrangements relating to investment projects;
- restructuring operations of companies and groups of companies located in Morocco; and
- operations between companies located in Morocco with direct or indirect links of dependence.
The tax authorities must respond to requests within three months of the date of receipt of the request.
Answer ... Yes, there is a transfer pricing regime in Morocco.
Profits that are indirectly transferred, by either increasing or decreasing the purchase or sale price, or by any other means, can be reported in the taxable income.
From 2020 onwards, companies that are directly or indirectly dependent on companies located outside Morocco will have to provide the tax authorities, by electronic means, with transfer pricing documentation to justify their transfer pricing policy.
Answer ... The limitation period is set at four years. In the event of failure to report, this period is extended to 10 years.