Massive rush to Moroccan banks as fiscal programme closes

The last weekend of December saw a massive influx in Moroccan bank branches, especially in some key districts of Casablanca, due to the imminent closure of an exceptional tax regularisation programme that has attracted a wide range of taxpayers, from real estate developers and internet influencers to entrepreneurs from various sectors, especially those linked to construction and real estate.

Bank offices and tax counters remained open throughout the weekend, providing a last chance for those who wanted to regularise their tax situation before the deadline on Tuesday 31 December. 

From 1 January, Moroccan taxpayers who have not regularised their tax situation could face serious consequences, exposed to heavy penalties for tax evasion. This represents the last opportunity for taxpayers to voluntarily declare their undeclared assets, with a contribution rate of 5%, and avoid future tax inspections.

This programme, promoted by the Directorate General of Taxes, allows taxpayers to voluntarily correct their tax status through a 5% contribution on declared assets. Once the process is completed, taxpayers benefit from exemption from future tax audits.

According to Maroc Diplomatique, some depositors have paid out sums ranging from 300,000 dirhams to more than 1.5 million dirhams to comply with the new tax requirements.  

A considerable part of these funds come from sectors that have operated in the shadows for years, especially the real estate sector, where informal and undeclared (‘nawar’) transactions were common practice. The possibility of avoiding future tax controls and severe penalties has persuaded many entrepreneurs to regularise their situation, although some still view the process with some suspicion.

To access the programme, participants were required to complete a detailed declaration that included personal information as well as details of their assets, loans and financial transactions. In some cases, they were required to open a bank account for those who did not yet have a formal relationship with financial institutions. After completing the registration, they were given a deposit and participation slip, formalising their entry into the system. 

However, despite the promise of confidentiality guaranteed by the Directorate General of Taxes, the fear of disclosure of personal data remains palpable. The tax authorities insisted that the information collected would not be shared with other entities, thus ensuring the anonymity of the participants. However, a significant part of them remain sceptical. Many entrepreneurs, especially those who resort to undeclared payments or engage in accounting irregularities, fear being detected by the tax authorities in the near future.

This fear of a ‘witch-hunt’ is rooted in the history of tax audits in Morocco, which are often perceived as complicated and intrusive procedures. For many, the fear is even greater because of their involvement in suspicious money flows between personal and professional accounts, or even in clandestine transactions. However, the regularisation system seems to offer a way out, as it guarantees, once the 5% contribution has been paid, fiscal peace of mind for years to come. 

Those who do not take advantage of this last opportunity face exorbitant fines and, in the worst case, legal proceedings for tax evasion.

Several economists agree that the tax regularisation implemented by the Moroccan government will be key to revitalising public finances, which in turn will make it possible to finance a wide range of projects in the future.

Moroccan media also highlight that this initiative will help fight drug money laundering in Tangier and Tetouan.