Solidarity contribution: Large corporations will have to pay more
Talking to the parliamentarians, Fouzi Lekjaâ, Minister in charge of Budget, was formal: companies that achieve a large turnover will have to make more efforts in terms of the Social Solidarity Contribution. Indeed, today, the solidarity contribution, calculated on profits and professional income, exists in the Finance Bill in force. For this year, the said solidarity contribution brings in 6.5 billion Dirhams (MAD) to the Government budget.
This contribution will be renewed for 2023. According to the formula currently applied, companies that make net profits of more than 40 million MAD do pay 5%. But, what about companies whose profits greatly exceed this threshold? For the time being, they are treated on an equal footing with those who make 40 million net profits. According to information filtered from the Ministry of Finance, it is not excluded to create new upper tranches in the Draft Budget Bill for 2023, but for the time being, the amounts to be retained and the rates which will be applied to such upper tranches have not yet been set. It must be said that companies with these levels of profits are known in Morocco. They are notably in the telecoms, hydrocarbons, cements, banks, insurance, and mining sectors. It must be said that the principle of applying a much higher rate to them than the one in force is accepted. The Head of Government is in favor of such special taxation (for large corporations). It was Minister Fouzi Lekjaâ who stated this fact before the MPs, especially since the resources of this solidarity tax will be directed towards supporting the underprivileged, and since the Head of Government, Aziz Akhannouch, presents himself as defending the strengthening of the foundations of the welfare state.
The Social Solidarity Contribution on profits and income has been reintroduced in the current Finance Bill. The contribution will be renewed for next year, with adjustments to be made to reach other targets such as large corporations which must contribute according to their profits. The goal is to strengthen social cohesion within society during this difficult period, marked by the repercussions of the health and economic crisis. The social solidarity levy on profits and income will be applied to companies that are subject to the corporate tax on companies whose net profit is equal to or greater than 1 million MAD, with the exception of companies that are permanently exempted from the contribution. Following a parliamentary amendment, companies carrying out their activities in the industrial acceleration zones and service companies benefiting from the fiscal regime of the Casablanca Finance City financial center are also subject to the social solidarity contribution on profits and income. This contribution will also be extended to natural persons holding income subject to income tax, according to the real net income regime and whose amount of income, net of tax, realized is equal to or greater than one million dirhams.
M.C.
