Zombie companies: no more time to lose!
Companies wishing to cease trading and disappear from the radar have just two months left to take advantage of the amnesty. The Finance Bill 2024 provides for a system of regularization of the situation in return for a number of advantages.
The remaining time may not be sufficient to complete the two obligatory formalities beforehand, i.e. obtaining a cancellation of the Commercial Register (Commercial Court) and of the business tax (DGI, General Directorate of Taxes). The declaration of deletion from the Commercial Register is likely to be difficult to obtain at short notice, due to appointment problems on the commercial courts’ electronic platform. This is likely to penalize latecomers and prevent them from benefiting from the scheme if they do not act quickly. This measure applies to companies that have not generated any sales over the last four financial years, or that have paid the minimum contribution of 3,000 dirhams (USD 300) for legal entities and 1,500 dirhams (USD 150) for individuals, and wish to cease trading definitively. On the other hand, the fiscal year(s) that have been subject to one of the normal or accelerated procedures for rectifying tax bases provided for under Articles 220 and 221 of the General Tax Code (CGI) are excluded from this derogation. In addition to regularizing their tax situation, companies opting for this measure will benefit from an amnesty on financial penalties (penalties, surcharges and other collection costs) for failure to file tax returns or pay taxes listed in the General Tax Code in respect of years not barred by the statute of limitations. To this end, the company concerned must file a declaration of total cessation of activities before December 31 and pay a lump-sum tax of 5,000 dirhams (USD 500), i.e. a total amount of 25,000 dirhams (USD 2,500) for the five non-time-barred financial years (including 2024). Those who comply with these procedures are exempt from tax inspection, unless the General Directorate of Taxes (DGI) finds “fraud, falsification, or use of fictitious invoices”. In this case, the DGI may initiate a tax audit under the conditions of ordinary law. It is the last chance for those who want to bury their companies as dead bodies.
Hassan EL ARIF
