Morocco: Temporary suspension of country-by-country report local filing requirement
Companies that are part of multinational enterprises (MNEs) operating in Morocco
Companies that are part of multinational enterprises (MNEs) operating in Morocco
The tax authority on 16 December 2022 issued an announcement temporarily suspending the requirement to file a country-by-country (CbC) report in Morocco for companies that are part of multinational enterprises (MNEs) operating in Morocco referred to under the provisions of articles 154 Ter II and 154 Ter III of the Moroccan Tax Code (MTC)—i.e., companies that are part of MNEs whose ultimate parent entity (UPE) is located in a jurisdiction:
- That does not require the filing of such CbC report
- With which Morocco has not concluded an agreement allowing exchange of information for tax purposes (or has concluded such an agreement but the tax authorities fail to exchange information)
However, the announcement reminds companies whose UPE or surrogate parent entity is a tax resident of Morocco of their obligation to e-file the CbC report for fiscal year 2021 by the 31 December 2022 deadline.
Background
Under the provisions of article 154 Ter I of the MTC, UPEs with direct or indirect shareholding overseas and a consolidated turnover of at least MAD 8,122,500,000 (currently approximately €730 million) during the prior year, are required to file their CbC report in Morocco.
The provisions of article 154 Ter II of the MTC also refer to the situation where a company in Morocco is appointed as a surrogate parent entity and as such this company is required to submit the CbC report in Morocco.
KPMG observation
While Morocco is a signatory of the CbC multilateral competent authority agreement (MCAA), it does not have yet bilateral relationships activated under the MCAA. Therefore, the provisions of articles 154 Ter II and 154 Ter III of the MTC are widely applicable.
In practice and until a notice from the tax authority, no filing of CbC reports is expected from Moroccan subsidiaries of MNEs unless such subsidiaries are appointed as a surrogate parent entity.
Read a December 2022 report [PDF 138 KB] prepared by the KPMG member firm in Morocco
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