Page 2 - Weekly highlights 6388

II

Weekly highlights

Land profits: A hindrance to the real estate market

T HE measure provided for by
the Draft Budget Bill rela-
ting to a request for a prior
opinion before the conclusion of
a real estate transaction has given
rise to certain comments from pro-
fessionals, in particular a chartered
accountant and a notary public, star-
ting with the schedule underpinned
by this measure. Indeed, the request
for the prior opinion, between the
date of its dispatch and the receipt
of the response from the adminis-
tration, takes a period of 90 days in
all. During this period, the seller is
likely to lose the opportunity to sell The new system which aims to secure the collection of tax on behalf of the Treasury risks slowing down the time for real estate transactions in a
a property, especially in times of cri- market which is not always fluid
sis and poor sales, and in 90 days, a opinion is received from the admi- the price of a sale would be likely the seller. The Directorate-General
potential buyer has plenty of time nistration?”, asks a notary public. to pose some implementation pro- of Taxes (DGI) has other ways to
to change their mind. “This new The latter also specifies that the res- blems since the real estate reference compel taxpayers to pay their taxes
procedure may significantly slow ponse within two months is detri- schedule has been suspended for an and duties. The classic revision or
down the completion of real estate mental to the interests of taxpayers. indefinite period. Furthermore, the rectification procedure is a commen-
transactions by adding to the slump Therefore, it is desirable to reduce chartered accountant points out that dable procedure, allowing taxpayers
that the real estate market has been it to less than a month. This system the institution, through the deposit to defend themselves before the lo-
experiencing for several years, even could also disrupt the secondary real of part of the sale price, denotes a cal and national commission and
more than a decade”, explains an estate market and prevent it from form of presumption of tax evasion even before the Moroccan courts.
accountant. “What if the compro- being regulated by the free play of and infringes the right to benefit We must not suffocate the citizen
mise is established for a long period supply and demand. The fact that the from the fruits of the property. For a especially in this period of unprece-
which could impact the sale price administration could rely on infor- notary public based in Casablanca, dented economic crisis”. o
in recession or fluctuation after an mation in its possession to correct “the provision is very restrictive for Hassan EL ARIF
The most heterogeneous coalition against

the draft budget bill

I T is certainly the most hete- tegories of remuneration paid to ser-
vice providers is also part of the tax
rogeneous coalition that has
measures reviewed during the mee-
ever been formed to pro-
test against certain tax measures of ting. And as was to be expected, the
Draft Budget Bill 2023. The mee- group of associations is asking for the
ting held last week by the group of outright withdrawal of this measure,
liberal professions (associations of which involves the levy of 20% on
pharmacists, dentists, veterinarians, turnover. This is certainly the extent
opticians, physiotherapists, accoun- that the operators are unanimous in
tants, etc.) aimed to adopt a common calling for the withdrawal. The group
position to block the way to certain of liberal professions, which also de-
tax provisions. “These provisions are cries the rise in the VAT rate to 20%
likely to destabilize many sectors”, instead of the current 10%, is asking
experts point out. The group asks the the government to renew dialogue
government to backtrack on raising with professional associations to find
the corporate tax rate from 10% to common ground on tax reform. This
20% over four years for net profits associations, “the 10% rate should be number 69-19 “provides for the es- complaint comes too late since the
up to 300,000 MAD (about 30.000 maintained because it targets small tablishment of a new effective, fair, Draft Budget Bill was to be voted on
USD), a scale that had been set up to and very small businesses”. To sup- equitable, and balanced tax system”. Wednesday, November 9, unless one
encourage operators from the infor- port their request, the professional “A tax scheme which encourages lobbies the members of the House of
mal sector to the formal economy associations invoke the provisions of investment and consolidates tax jus- Councillors, including several grou-
and more transparency via a tax rate the Constitution which stipulate that tice and social solidarity, and which pings (professional chambers and
reduced to 10%, but for some reason, citizens must pay taxes according contributes to the broadening of the parliamentary group of employers)
the legislators changed their minds to their ability to pay. The group of tax base to reduce the burden on tax- representing the business commu-
and decided to gradually phase out professional associations also recalls payers”. The 20% withholding tax nity. o
this scale in 2026. For the group of that the framework law on tax reform on professional fees and all other ca- Hassan EL ARIF
Friday 11 November 2022