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 customs duties under Article 7.I of the Finance Act No. 12/98;
- Exemption from import VAT under Section 123-22 °-b of the General Tax Code.
1.Investment Promotion Fund (IFP)
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.
2.Hassan II Fund
Hassan II Fund for Economic and Social Development (FHII) grants financial assistance for investment projects in some industrial sectors.
- Building or acquiring professional buildings: the Fund supports up to 30% of the cost of professional buildings on the basis of a maximum unit cost of 2,000 MAD/m2 (excluding taxes)
- Acquiring new equipment goods: the Fund may contribute up to 15% of the purchase cost of new equipment goods (excluding import duties and taxes).
These contributions are limited to 15% of the investment amount and 30 million MAD.
3. Import Duty Exemption
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.
4. 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.