Real estate/Tax clearance: No more permissiveness
The new tax measure, provided for in Article 139-IV of the General Tax Code (CGI), has been criticized as a disincentive to real estate transactions. Questioned by L’Economiste, the Kingdom’s General Treasury (TGR) is confident in its indicators.
In fact, for returns transmitted via the Tawtik electronic platform, linking notaries to the administration, filed during the period between July 1 and September 18, the TGR posted a processing rate of 94.6% for 41,828 returns, resulting in the creation of 88,711 items, which are the tax reference that property developers are required to obtain for new homes in stock.
The new system also applies to second-hand homes offered for sale, for which sellers are required to provide proof of payment of taxes and duties on the property. Over the same period, the TGR processed some 69% of applications. 15% are awaiting a response from municipalities. The remaining 16% are in the process of receiving payment or additional documents. It should be remembered that issuing the documents in question is not the sole responsibility of a single administration, since municipalities are also involved in the process. These figures were generated about a week ago. In the meantime, the situation has changed as the remaining files are processed and new applications received.
To reduce delays, the TGR claims «to have made considerable efforts, complemented by awareness-raising actions with other stakeholders to ensure greater speed and responsiveness».
Why are taxpayers and practitioners so angry about the delays? According to the TGR, «these delays are mainly due to incomplete or empty returns, or returns sometimes sent to departments not involved in processing these types of file ”. However, the services of the Kingdom’s General Treasury acknowledge “that our partners will need time to adapt in order to make a success of this reform».
On another note, the TGR has set up a reporting system which provides statistics three times a day on the processing of declarations and requests for certificates. This data specifies, by item, their number and processing status (taken in hand, in progress, returned for further information or reasoned rejection where applicable). A unit has also been set up to monitor declarations and other requests on a daily basis, and to propose and implement immediate corrective action. Patience remains the watchword.
Hassan EL ARIF
