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Investment Incentives

Attractive incentives for your projects

In addition to the tax exemptions granted under the common law, Moroccan law provides specific financial, tax and customs advantages to investors, as part of agreements or investment contracts to be concluded with the State, provided that they meet the required criteria. This concerns:

•  The contribution of the state to certain investment expenses: Investment Promotion Fund;

•  The contribution of the state to certain expenses for the promotion of investment in specific industrial sectors and the development of modern technologies: the Hassan II Fund for Economic and Social Development;

•  Exemption from import VAT under Section 123-22 °-b of the General Tax Code.

The Investment Promotion Fund (IFP) manages operations relating to the state’s taking charge of the cost of some advantage granted to the investments that meet the criteria, within the framework of contracts, and in accordance with the investment charter and its implementation decree:

•  Land support:the IFP takes charge of 20% of the expenses of land acquisition necessary for the realization of the investment;

•  External infrastructure: the IFP participates in the expenses of external infrastructure with up to 5% of the overall amount of the investment program;

•  Training:the IFP participates in the expense of vocational training provided as part of the investment program with up to 20% of the cost of this training.

Investment Promotion Fund

These advantages are cumulative, provided that the state'sparticipation does not exceed 5% of the total investment program. However, if the investment project is expected in a suburban or rural area or in the case of investment in spinning, weaving and textiles finishing, the participation of State may reach 10% of the total investment program.

•  The investment project must meet at least one of the following criteria:

•  Invest an amount equal to or greater than MAD 200 million,

•  Create a number of stable jobs equal to or above 250;

•  Realize the project within one of these provinces or prefectures: Al Hoceima, Berkane, Boujdour, Chefchaouen,Es-Smara, Guelmim, Laayoune, Larache, Nador, Oued Ed-Dahab, Oujda-Angad, Tangier-Asilah, Fahs-Bni-Makada, Tan-Tan, Taounate, Taourirt, Tata, Taza and Tetouan;

•  Ensure transfer of technology;

Contribute to the environment protection

Businesses that commit to making an investment of an amount equal to or greater than two hundred (200) million dirhams can benefit, as part of agreements to be concluded with the government, from exemption from import duty and the value added tax applicable to goods, materials and tools needed for their project and imported directly by the companies or on their behalf.

This exemption is also granted to the parts, spare parts and accessories imported at the same time as capital goods, machinery and equipment for which they are intended. The investment must be made within thirty-six (36) months from the date of the signature of the abovementioned agreement.

VAT Exemption

Equipment goods, materials and tools needed to achieve investment projects involving an amount higher than or equal to MAD 200 million are exempt from VAT on imports within the framework of an agreement concluded with the State, in favor for the beneficiaries during a period of thirty six (36) months from the start of business. This exemption is also granted to parts, spare parts and accessories imported at the same time as the aforesaid equipment.