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Join on Telegram Doha – The Moroccan General Tax Directorate (DGI) and banks across the country have opened their offices this weekend, December 28-29, 2024, as the deadline approaches for both year-end operations and the voluntary tax disclosure program set to expire on December 31.
According to the Moroccan Professional Group of Banks (GPBM), select bank branches nationwide will operate during the weekend to facilitate end-of-year transactions for individuals, businesses, and public institutions.
The GPBM has advised customers to check their respective banks’ websites for specific branch locations and operating hours.
The initiative coincides with the DGI’s push to accommodate increasing interest in the voluntary tax compliance measure, reintroduced in the 2024 Finance Act.
This program allows individuals to declare previously unreported income and assets by paying a reduced contribution rate of 5% of their value, instead of facing potential tax rates of up to 37% along with additional penalties.
“Due to increasing interest in the voluntary tax compliance measure, the DGI offices will remain open during the weekend to enable concerned individuals to submit their declarations and pay contributions related to movable assets, real estate, or partner current account advances,” the tax administration stated in an official release.
The program specifically targets individuals with undeclared income and assets prior to January 1, 2024, including bank account deposits, cash holdings, non-professional property acquisitions, partner current account advances, and loans granted to third parties.
Amid widespread misinformation circulating on social media about the initiative, banking sector sources clarified to various Moroccan media outlets that the 5% rate does not apply to all bank accounts.
“This only concerns individuals who have not fully declared their income or assets subject to income tax,” explained a senior banking official who requested anonymity.
The tax administration has reportedly identified approximately 4,000 individuals who have yet to comply with the program and has already sent 2,000 notices urging participation before the deadline.
Officials confirmed there would be no extension beyond December 31, after which non-compliant individuals will face full tax rates and penalties.
To encourage participation, the DGI emphasized that declared amounts subject to the 5% contribution will not be considered during future tax audits or overall tax situation examinations under Article 216 of the General Tax Code.
Banks are also authorized to accept declarations based on previous financial flows through accounts, maintaining strict confidentiality of declarants’ identities.
The initiative aims to integrate individuals operating in the informal sector into the official tax system while generating additional revenue for the state treasury. However, it has sparked debate among regularly compliant taxpayers who express concerns about tax equity.
Tax authorities stress that when contributions are paid through banks, no identifying information is shared with the tax administration, ensuring complete confidentiality of the process.
This measure is part of a broader strategy to enhance financial transparency and strengthen the national economy in the long term.
After the deadline, individuals who fail to take advantage of this opportunity will face significantly higher tax rates and potential legal consequences, as the administration moves to enforce standard tax regulations on undeclared assets and income.
Read also: Morocco Moves Ahead with Comprehensive Tax Reforms in 2025 Finance Bill
