This article has been written to take account of the main provisions of the Finance Act for 2022.
On December 20, the Finance Act for 2022 was published in Bulletin Officiel N° 7049 bis.
The Finance Act for 2022 has undergone a series of amendments. This note will focus on the main amendments relating to corporate and personal taxation.
1- Broadening the basis of application of the social solidarity contribution on profits for 2022:
Articles 11-IV, 267 to 273 of the General Tax Code
This contribution will apply to companies and individuals with professional or agricultural income determined according to the real net income system and whose net profit exceeds 1 million dirhams at the following rates:
Companies permanently exempt from corporate income tax are excluded from the scope of this contribution.
This contribution has not been renewed for individuals holding :
Salary income
Profits and property income
Income and capital gains
It should be noted that one of the new features of the FLA 2022 is the application of CSS to companies benefiting from temporary exemptions.
This is the case for companies based in Casablanca Finance City and the Industrial Acceleration Zone.
2- Reduction in the marginal rate of corporate income tax from 28% to 26% for industrial companies with net income of less than MAD 100,000,000, in respect of their net income corresponding to their local sales:
Article 19-I-A of the C.G.I-9
Downward revision of the corporate income tax rate applicable to companies in the industrial sector with net income of less than MAD 100 million.
From now on, these companies will be subject to a corporate income tax rate of 26 % instead of 28 % in the past.
3- Eliminate progressive rates from the current corporate tax scale and adopt proportional rates to ensure convergence towards a unified rate;
The corporate income tax rates remain unchanged (see below), but instead of being progressive, they are now proportional.
For example, for taxable income of 700,000 dirhams, the applicable corporate income tax rate will be 20 % on all taxable income, rather than 10 % for taxable income of 300,000 dirhams and 20 % for taxable income of 400,000 dirhams.
Net taxable profit on export sales is still taxed at the reduced rate of 20%.
4- Lowering the minimum contribution rate from 0.50% to 0.40%:
Article 144-I-D of the CGI
Article 144-I-D of the LF 2022 provides for a reduction in the minimum contribution rate from 0.50% to 0.40% for companies whose current income excluding depreciation is declared positive.
However, the rate of 0.60% remains applicable if current income excluding depreciation is in deficit for the last two consecutive years, beyond the exemption period during the first 3 years of operation.
The new measure applies to fiscal years beginning on or after January 1, 2022.
5- Adaptation and improvement of the Single Professional Contribution regime instituted by the 2021 Finance Act
Article 40-I of the CGI
The 2022 Finance Law provides for standardization of the Single Professional Contribution by reducing the number of occupational categories and coefficients used to determine the tax base. The number of occupational categories is now reduced to four (4):
commerce, services, manufacturing, trade and specific activities.
The 2022 Finance Act has revised the margin coefficients to be applied to each category of profession.
At the same time, it repealed the table annexed to the General Tax Code for determining the single business contribution system for income tax purposes, as set out in article 40.
From January 1, 2022, individuals whose professional income is determined under the CPU system will be subject to income tax as follows:
CPU = (Sales x Coefficient) x 10 % + additional fee
You will also find an article dedicated to the new "Contribution Professionnelle Unique" scheme...
6- Extension of the income tax (IR) exemption for income paid to employees for the first time until December 31, 2022.
Extension of the special income tax exemption scheme for newly-hired employees between January 1, 2021 and December 31, 2022.
This scheme, adopted as part of the 2021 Finance Act, was intended only for employees recruited during 2021.
At the end of this brief presentation of the main provisions of the Finance Act 2022, we note that it brings together all the pillars necessary for Covid 19's post-crisis economic recovery.
In addition to these main benefits, a number of other tax measures have also been introduced. These can be studied separately on a case-by-case basis, at the request of the interested party.
For further information on the 2022 Finance Act, our legal and tax team is at your disposal.
Faithfully yours
Ilham Taha-Bouamri
Chartered accountant and tax specialist
