Lawyers experience their new tax regime

The new tax provisions applicable to lawyers, introduced by the 2023 Finance Law had prompted an outcry from thousands of lawyers across Morocco. They engaged in various forms of protest, demonstrations and sit-ins in front of parliament, blocking most of the courts, but the Government was adamant about the the obligation for lawyers  to pay an income tax instalment each time a case is filed (article 173-III of the General Tax Code, CGI), either as and when claims are registered (article 173-III-A), or once a year after the close of the accounting period (article 173-III-B). The amount of the deposit has been set at 100 Dirhams (US$ 10), which lawyers are required to pay once for each case for which they have received all or part of the fees. This amount must be paid at the time of registration of a petition, appeal, entrustment or assistance before the courts. Payment is made to the clerk of the court on behalf of the tax authorities, and covers all stages of the proceedings. 
It is not so much the amount of the tax advance that’s important to the tax authorities as the principle, since it enables them to identify thousands of lawyers who have been practicing incognito for years. In fact, the figures for professionals registered with the various bar associations were much higher than those appearing on the tax authorities’ registers. This was the conclusion reached by the tax authorities during the campaign to regularize the various professions in 2020.
According to our information, almost all lawyers have opted to make their advance payments once a year, after the close of the financial year. For taxpayers in this situation, the final deadline for filing their income tax returns for 2023 expires on January 31 for practitioners practicing as individuals (article 173-III-B of the CGI).
For the overwhelming majority of lawyers, this will be the first time they file a tax return under the new tax provisions. They will be required to make advance payments of 100 Dirhams (US$ 10) multiplied by the number of cases registered during 2023, using a model form drawn up by the tax authorities. This form must include the lawyer’s tax ID, identification details and the number of cases registered with the courts in his or her name. These data can be cross-checked by the tax authorities with the list of cases sent to them by the Ministry of Justice, again on a standard form. The necessary arrangements should already have been made between the two bodies in anticipation of the January 31 deadline.
Each interim payment will therefore have to be accompanied by a notification slip in accordance with the model drawn up by the DGI, containing a certain amount of information such as family name, first name, address for tax purposes, tax identification number, nature of the case, case number, court, amount and date of payment…

Hassan EL ARIF