Morocco's successful tax amnesty ends the year with 100 billion dirhams collected
The outcome of Morocco's recent tax amnesty programme has been a resounding success for the tax measure included in the 2024 Finance Law, raising declarations worth a total of Dh100 billion (equivalent to 10 billion dollars).
According to data from 1 January, 60 billion dirhams were recorded as cash deposits in the banking sector, while the other 40 billion dirhams were related to purchases of real estate and contributions to members' current accounts, as reported by various Moroccan media outlets such as Le 360.
This programme ended on 31 December 2024 imposing a contribution rate of 5 % on the declared figures and is expected to generate around 5 billion dirhams in tax revenues for the state budget in 2025, whereby banks would be obliged to transfer these authorised amounts to the Treasury within one month of the submission of the declaration. It is worth noting that this process is a key step in improving the financial liquidity of the Moroccan kingdom, ensuring that funds are transferred to the Treasury in an efficient manner.
Furthermore, the total amount of the amnesty programme completely exceeded expectations that initially targeted Dh60 billion in declarations and has now surpassed the results of the 2020 tax amnesty by up to twenty times more, just for cash deposits alone.
Why was the amnesty implemented?
Let us recall that this process was implemented due to the high circulation of cash in Morocco which, according to data from Al-Maghrib Bank, came to represent almost a quarter of the total cash in circulation in the country with figures hovering around 426 billion dirhams at the end of October 2024.
From the outset, the amnesty targeted individuals with undeclared earnings and income before 1 January 2024, covering various assets, bank deposits and cash holdings. This is in addition to movable and immovable property, cash advances in members' current accounts and loans granted to third parties.
On the last day of the amnesty, 31 December, unprecedented crowds of people were seen rushing to regularise their tax situation at tax offices and bank branches, all in order to avoid the 37% tax rate on undeclared funds that was due to be imposed as of 1 January.
Faced with this large influx of people, bank branches and the DGI took measures in line with the demand, so that they kept some branches open during the weekend of 28-29 December to handle the influx of customers. A necessary step, since, thanks to the funds raised, the country will receive additional resources that are aimed at improving its fiscal situation and easing the burden on the public budget.
In this respect, the media Medias24 has stated that 5% would be deducted for the benefit of the tax administration on the amount realised and believes that it is unlikely that all the money in circulation would be declared; moreover, the amount collected by the state would be just over 20 billion dirhams.
This initiative is a clear example of Morocco's efforts in its national fight against money laundering and terrorist financing, which have reflected important achievements such as the country's removal from the grey list of the Financial Action Task Force (FATF).