As part of the implementation of the framework law on tax reform aimed at the progressive application of the principle of taxation of the global income of individuals, it is proposed to reinstate the taxation of the annual global income of these individuals according to the rates of the progressive IR scale, with application of withholding tax.
Thus, the obligation to file the declaration of global income will be mandatory for property income. In this context, the 2023 Finance Bill provides for:
the retention of the current method of recovery by way of withholding tax by applying non-liberatory rates to the net amount of said income;
the reinstatement of the 40% reduction for determining taxable net property income after filing the global income declaration;
the removal of the option for spontaneous payment.
The method of taxation and control of income tax linked to land profit, revised by the establishment of a new method of taxation and prior control, is as follows:
– Grant taxpayers, before carrying out transfer operations when concluding sales agreements, the possibility of validating with the tax authorities the subscription of their declaration of real estate profits and the conformity of the elements for determining the taxable base as well as the related rights or exemption, where applicable, by filing a request for prior notice. If the taxpayer files his declaration taking into account the elements retained and communicated by the administration and pays the corresponding tax spontaneously, he will be exempt from tax control in this area;
– If the taxpayer does not request the aforementioned prior notice or does not accept the elements retained by the administration following said notice, said taxpayer will be required:
— to file his/her real estate profits declaration and pay the related tax to the tax authority;
— and, to pay provisionally, the difference between the amount of said tax and 10% of the transfer price. In this case, the administration may initiate the rectification procedure in matters of land profits, according to an adversarial procedure provided for by law and proceed to the restitution of the remainder of the amount paid provisionally, after deduction of the amount of the additional tax issued following said procedure, with the possibility of appeal before the local taxation commission and the competent courts.
Source: www.lematin.ma / Article from October 21, 2022
