The standard VAT rate is 20 percent and applies to all suppliers of goods and services, except those taxed at other rates or those who are exempt. A reduced rate of 10 percent applies to specific items such as banking and credit services, leasing, gas, water and electricity. Two types of exemptions from VAT are provided. The first is an exemption with credit, equivalent to the zero-tax concept, which applies to exports, agricultural material and equipment and fishing equipment. The second is an exemption without credit, i.e., the seller receives no credit for input VAT paid. This exemption applies to basic foodstuffs, newspapers and international transport services.
Tax Slab Rates :
0 – 48000 BWP – 0%
48,000 – 84,000 BWP – 5%
84,000 – 1,20,000 BWP – 12.5%
1,20,000 – 1,56,000 – 18.75%
1,56,000 BWP & above – 25%
Limited liability companies (SA) must have a minimum of five shareholders who can be either legal entities or individuals. Upon incorporation of the limited liability company, a quarter of the equity capital must be paid in advance if paid in cash contributions. If it is paid in contributions in kind, it must be fully paid upon incorporation. Both bearer and registered shares may be issued by the limited liability company. The minimum share value is 50 MDh.
The private limited company (SARL) should have minimum equity capital 10,000 MDh. It may be formed by two or more members who are only liable to the amount of their share of the equity capital in the company.
In a general partnership, the partners are jointly and severally liable, without limitation, for the debts of the partnership. Partners may be individuals or corporations; however, they do have to be registered as merchants. There is no restriction on participation by foreign individuals or corporations in general partnerships.
Foreigners may establish in Morocco sole proprietorships. In a sole proprietorship, the business is conducted under the responsibility of an individual personally liable for the debts of the business to the extent of all business and personal assets. The business must be registered with the Commerce Registry and with the tax authority.
Chandrawat & Partners is a prominent full-service firm dedicated to delivering top-tier professional services to clients both within the domestic and international spheres.
Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.
Chandrawat & Partners stands as a dynamic and rapidly expanding full-service firm, specializing in the delivery of exceptional professional and corporate services to a diverse clientele, both foreign and local. We proudly represent companies and individuals across a wide spectrum of sectors through distinct entities established in various countries worldwide.
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