Worldwide transfer pricing reference guide 2014

Morocco
Taxing authority and tax law
Tax authority: Direction Générale des Impôts (DGI), generally referred to as the Moroccan Tax Administration
Tax law: Transfer pricing aspects are regulated by Article 213–II and 214–III of the Moroccan Tax Code (MTC)
• Article 213–II of the MTC: Moroccan Tax Administration is authorized to adjust the taxable income and/or the declared turnover of
the Moroccan enterprises which are dependent, directly or indirectly, on enterprises located inside or outside Morocco. In this case,
the tax authorities are entitled to re-determine the profits that have been indirectly transferred. These adjustments are performed by
way of comparison with similar independent enterprises or by way of direct appreciation based on the available information to the Tax
Administration
• Article 214–III of the MTC: For operations involving foreign companies, the Tax Administration is entitled to request from local entities all
documents and information related to:
• The nature of relations linking the Moroccan company to the foreign company
• The nature of the services provided or the products sold
• The method of determination of the prices for the operations realized between the Moroccan and foreign companies
• The foreign company’s tax regime and tax rates
Relevant regulations and rulings
There are no tax regulations and rulings in Morocco that deal with transfer pricing aspects.
However, please note that Morocco has an Exchange Control regulation pursuant to which the Control Exchange Office can challenge
excessive unduly transfer of payments abroad.
OECD Guidelines treatment
As Morocco is not an OECD member, the OECD Guidelines regarding transfer pricing issues are not being followed.
There is no specific Moroccan transfer pricing regulation pertaining to business restructuring or attribution of profits to permanent
establishments.
Priorities/pricing methods
According to the Moroccan Tax Law, the TNMM should be applied.
Transfer pricing penalties
Currently, there are no provisions in the MTC binding companies to submit or present transfer pricing documentation.
However, according to Article 214–III of the MTC, for operations involving foreign companies, the Tax Administration is entitled to request
from local entities all documents and information related to:
• The nature of relations linking the Moroccan company to the foreign company
• The nature of the services provided or the products sold
• The method of determination of the prices for the operations realized between the Moroccan and foreign companies
• The foreign company’s tax regime and tax rates
If no information is provided, a dependent relationship is deemed between the Moroccan company and the foreign company.
Generally penalties apply as a result of a transfer pricing reassessment (regardless of compliance with any transfer pricing
documentation requirement) as follows:
In terms of Corporate Income Tax (CIT): The amounts reassessed are reinstated in the taxable income of the company and taxed at the
applicable CIT rate. Besides penalties apply as follows:
• 15% for late filing or incomplete filing. In case bad faith is demonstrated, 100% penalty applies
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