Sponsored briefing: Dutch dividend withholding tax exemption for share buybacks by listed companies may be abolished by 2025

Sponsored briefing: Dutch dividend withholding tax exemption for share buybacks by listed companies may be abolished by 2025

Dutch listed companies may buyback their own shares free from Dutch dividend withholding tax (DWT), subject to certain conditions being met. Based on an adopted amendment to the Dutch Tax Plan 2024, the House of Representatives decided to abolish this exemption as of 1 January 2025. This would mean that share buybacks will be subject to 15% dividend withholding tax. However, a new government, to be formed after the 22 November 2023 elections, could still decide in 2024 not to abolish this exemption. In addition, various alternatives remain available to distribute cash to shareholders free from DWT.

For the avoidance of doubt, companies that have a listing in the Netherlands, but are not tax resident of the Netherlands are and remain outside the scope of Dutch DWT. Such companies are in any event not affected by the proposal. Continue reading “Sponsored briefing: Dutch dividend withholding tax exemption for share buybacks by listed companies may be abolished by 2025”

Sponsored thought leadership: Hot topics of tax controversy in Latin America

Sponsored thought leadership: Hot topics of tax controversy in Latin America


Like Anne Brontë said ‘… but he that dares not grasp the thorn should never crave the rose… ’. Argentina happens to be an attractive alternative to develop business in South America despite it showing some uncertainty when it comes to its economic situation. Taxes and its tax policy are not an exception and companies as well as individuals might find themselves involved in tax controversy processes. Since 2017 taxpayers faced a tax growing situation without precedents. The most important tax changes at a federal level since then that can be mentioned are: Continue reading “Sponsored thought leadership: Hot topics of tax controversy in Latin America”

Sponsored thought leadership: tax complexities abound for taxpayers and states alike in navigating a fast-evolving international tax landscape

Sponsored thought leadership: tax complexities abound for taxpayers and states alike in navigating a fast-evolving international tax landscape

Allen Tan, Dawn Quek and Jeremiah Soh of Baker & McKenzie Wong & Leow provide a glimpse into the challenges arising from the implementation of international tax developments and implications for Singapore’s tax landscape. Continue reading “Sponsored thought leadership: tax complexities abound for taxpayers and states alike in navigating a fast-evolving international tax landscape”

Sponsored Q&A: Dentons (Morocco)

Sponsored Q&A: Dentons (Morocco)

1. What are the key tax laws and regulations in Morocco that individuals and businesses should be aware of?

The General Tax Code consolidates all the tax laws related to corporate tax, personal income tax, value added tax (VAT), and registration duties.

With regard to the municipal taxes to which companies are subject, these are governed by Law 47-06, in particular with regard to business tax and tax on communal services.

2. Can you explain the tax obligations for residents and non-residents in Morocco?

Morocco operates a territorial tax system. Companies (both resident and non-resident) are generally subject to corporate tax only on income generated from activities carried on in Morocco. Foreign corporations are subject to taxation on income arising in Morocco if they have, or are deemed to have, a permanent establishment in Morocco. Morocco has signed several tax treaties to avoid double taxation.

Morocco applies a special company income tax for all the non-residents who provide services to Moroccan resident companies. The tax rate is 10%. This tax is collected as withholding tax paid by the Moroccan beneficiary of the service.

3. What are the different types of taxes imposed in Morocco, such as income tax, VAT, and corporate tax?

Corporate income tax
The definition of ‘corporate’ covers limited liability companies, limited partnerships by shares, general and limited partnerships in which at least one partner is a corporate entity, civil companies, branches of foreign corporations, public sector companies having profit-oriented activity and joint ventures having business-oriented activity.

The normal rate is:

  • 20% from 1 MAD to 100,000,000 MAD
  • 35% above 100,000,000 MAD

A higher CIT rate of 40% applies to leasing companies and credit institutions.

Foreign contractors carrying out engineering, construction or assembly projects relating to industrial or technical installations may opt to be taxed at a rate of 8% calculated on the total contract price net of VAT and similar taxes.

Companies are always subjected to a legal minimum tax (cotisation minimale (CM)) of MAD 3,000 or 0.25% of the annual turnover. The CM is not payable by companies during their first 36 months of operation.

A social solidarity contribution on profits and income is hereby introduced and payable by companies and individuals.

A 15% branch remittance tax is imposed on profits remitted to the head office. The Moroccan-sourced income of Moroccan branches of foreign companies is subject to income tax at the ordinary corporate rate of tax. The taxable income is calculated as if the branch was a separate entity from the foreign company.

Value added tax
Suppliers of goods and services must add VAT to their net prices. Where the purchaser is also liable for VAT, input VAT may be offset against output VAT. The standard VAT rate is 20% and applies to all suppliers of goods and services, except those taxed at other rates or those who are exempt. A reduced rate of 10% applies to specific items such as banking and credit services, leasing, gas, water and electricity.

Personal tax
Individuals, regardless of nationality or activity, who have their habitual residence in Morocco are subject to a personal income tax (impôt sur le revenu or IR) on their worldwide income on a progressive scale between 10% and 38%.

Capital gains derived from the disposal of immovable property are generally subject to tax as part of the personal income of the individual, ie, 20%.

4. Are there any tax incentives or exemptions available for businesses or individuals in Morocco?

There are specific areas which provides tax incentives :

  • Areas for industrial acceleration: incentives on corporate tax and withholding tax on dividends
  • Casablanca Finance City: incentives on corporate income tax and income tax on salaries and withholding tax on dividends
  • Offshoring services areas: incentives on corporate income tax and income tax on salaries

5. What are the requirements for tax registration and filing in Morocco? Are there any specific deadlines that need to be followed?

The calendar year is normally the fiscal year although a company may opt for a different fiscal year. Accounts for income tax purposes must be filed within three months after the end of the relevant accounting period. Corporate tax is payable in four equal instalments, based on the prior year’s assessment. Foreign companies that have elected for the 8% default taxation must submit a declaration of their turnover before 1 April following each calendar year.

6. Can you provide guidance on the taxation of international transactions and cross-border investments in Morocco?

Article 214-III of the General Tax Code provides a framework for analysing international transactions between affiliated companies:

  • Obligation to provide the tax authorities, by electronic means, with the documentation needed to justify the transfer pricing policy, the list and procedures for which are set by regulation, including :
    • a master file
    • a local file
  • Documentation must be produced when the turnover achieved and declared, excluding VAT, is greater than or equal to 50 million DH; or the gross assets shown on the balance sheet at the end of the financial year concerned are greater than or equal to DH50 million.
  • Obligation to make a country-by-country declaration in accordance with OECD guidelines.
  • Possibility of making prior agreements with the tax authorities valid for four years.

7. How does Morocco address tax evasion and tax avoidance? What are the penalties for non-compliance?

A fine equal to 100% of the amount of tax evaded is applicable to any person who has taken part in manoeuvres designed to evade payment of tax payment, or assisted or advised the taxpayer in carrying out the said manoeuvres, independently of any disciplinary action if he holds a public office.

8. Are there any specific tax considerations for specific industries or sectors in Morocco?

Newly incorporated companies whose activity (22 activities available) is industrial and provided in a specific act are exempted from corporate income tax for five years. Example of activities:

  • Food industry
  • Textile industry
  • Clothing industry
  • Leather industry
  • Wood and cork products industry
  • Paper and cardboard industry
  • Printing and reproduction of recordings
  • Chemical industry
  • Pharmaceutical industry

9. Can you explain the tax implications for expatriates working in Morocco, such as residency status, tax treaties, and foreign income reporting?

Since a Moroccan resident is taxed on worldwide income, the Moroccan tax system provides relief from foreign taxes paid on such worldwide income by means of a foreign tax credit. This foreign tax credit cannot exceed the Moroccan tax otherwise payable in respect of the foreign-source income.

Individuals who do not have their habitual residence in Morocco are subject to tax only on Moroccan-source income.

10. What are the options for resolving tax disputes in Morocco, such as administrative appeals or legal proceedings?

In case of tax disputes, taxpayers can present their claim in front of :

  • Local tax commission
  • Regional tax commission
  • National tax commission
  • Administrative court

For more information contact

Mehdi Benouna
Of counsel, Casablanca
E: mehdi.benouna@dentons.com

Sponsored Q&A: Deloitte Legal

Sponsored Q&A: Deloitte Legal

1. What are the main tax laws and regulations that businesses and individuals need to comply with in Uruguay?

Main Uruguayan tax laws are comprised within the Tax Law Code and the Tax Office Compilation, where are defined and regulated the main applicable taxes for businesses and individuals. In this sense, such compilation comprehends the corporate income tax, resident income tax, non-resident income tax, value added tax (VAT) and the net worth tax. Continue reading “Sponsored Q&A: Deloitte Legal”

Pillar to post

Pillar to post

After an extended and often troubled development, the OECD’s new ‘global minimum tax’ is at last coming to fruition. With adoptees including South Korea and Japan, and the Council of the European Union in addition to the UK government announcing plans to follow suit by the end of 2023, the prospect of Pillar Two, long seen as distant and perhaps uncertain, is now ever more tangible. Continue reading “Pillar to post”

Firm profile: KPMG

Firm profile: KPMG

About KPMG’s dispute resolution team

Our KPMG dispute resolution team has extensive experience assisting organisations resolving tax disputes, while maintaining an effective working relationship with tax authorities.

Tax law can be complex and uncertain and with each new development in the tax environment, the context for resolving
tax disputes changes. For companies, this could result in a position of conflict that requires strategy and expertise
to navigate. Continue reading “Firm profile: KPMG”