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Corporate tax
Hotel companies benefit, in respect of their hotel establishments, for the part of the taxable base corresponding to their turnovers achieved in foreign currencies duly repatriated directly by them or on their behalf through travel agencies, from:
• Total exemption from corporate tax for a period of five consecutive years, starting from the financial year in which the first foreign-currency-denominated accommodation operation was carried out;
• Application of the reduced rates defined in the progressive scale, with a marginal corporate income tax rate capped at 20% after this period. The above-mentioned exemption and tax rates also apply to the part of the taxable base corresponding to turnovers generated in foreign currencies and duly repatriated directly by the company or on its behalf via travel agencies:
• Management companies of real-estate residences of tourist promotion, as defined by Law No. 01-07 enacting special measures relating to real-estate residences of tourist promotion and amending and supplementing Law No. 61-00 on the status of tourist establishments, promulgated by Dahir No. 1-08-60 of 17 joumada I 1429 (May 23, 2008);
• Tourist entertainment establishments whose activities are defined by regulation.
Income tax
Hotel companies and tourist entertainment establishments benefit from:
• Total exemption from income tax for a period of five consecutive years, starting from the financial year in which the first foreign-currency-denominated accommodation operation was carried out;
• Taxation at the reduced rate of 20% after this period.
Value-added tax
Application of the reduced rate of 10%, with the right to deduct, to:
- accommodation and catering operations;
- rental operations involving buildings used as hotels, motels, holiday villages or tourist complexes, fully or partially equipped, including restaurants, bars, dance halls and swimming pools, provided they form an integral part of the tourist complex.
Professional tax
The rental value used as a basis for calculating the professional tax applicable to hotel establishments is determined by applying the following coefficients to the cost price of the buildings, equipment, tools, fixtures and fittings of each establishment, based on the overall cost of the tangible elements of the establishment in question, whether operated by the owner or the lessee: • 2% when the cost price is less than MAD 3,000,000; • 1.50% when the cost price is equal to or greater than MAD 3,000,000 and less than MAD 6,000,000; • 1.25% when the cost price is equal to or greater than MAD 6,000,000 and less than MAD 12,000,000; • 1% when the cost price is equal to or greater than MAD 12,000,000.
Registration fees
Exemption from registration fees for deeds relating to the acquisition of bare land intended for the construction of hotel establishments, subject to the following conditions:
• the purchaser must undertake to carry out the construction of the hotel establishment within a maximum period of six years from the date of acquisition of the bare land;
• in accordance with the terms and conditions set out in the General Tax Code, the purchaser must grant a mortgage in favor of the State, as security for paying simple registration duties and, where applicable, any penalties and surcharges which may be imposed if this undertaking has not been respected.
• the land acquired and the buildings constructed must be held as assets of the owner company for at least 10 years from the date of commencement of operations.
