Municipal service tax

Municipal service tax

Municipal service tax

Since January 1, 2008, the municipal services tax has replaced the municipal tax in Morocco.
The municipal services tax is a tax levied annually by the public treasury for the benefit of urban and rural municipalities.
It concerns all real estate (built buildings and constructions of all kinds).
It also applies to equipment, tools and any means of production subject to business tax.

Municipal service tax exemptions
In the same way as the residence tax, you benefit from a 75% reduction applicable to the rental value of a main residence occupied by the owner, the spouse, the ascendant or descendant in direct line in the first degree. .
A 75% reduction is also applied to Moroccans residing abroad for their accommodation kept as their main residence in Morocco or occupied free of charge by a family member (spouse, ascendant or descendant in direct line in the first degree ).
All taxpayers who benefit from total and permanent exemption from housing tax and business tax are totally exempt from the municipal services tax, with the exception of certain organizations listed in article 34 of law 47 -06.
This exemption concerns, for example, state buildings and those belonging to political parties…
For the exhaustive list of organizations benefiting from total and permanent exemption, see Articles 06, 22 and 34 of Law No. 47-06.

Basis for calculating the municipal service tax
The municipal services tax is calculated on the basis of the annual rental value of the property (same basis for calculating the residence tax or the business tax).
When the goods are rented, this tax is applied to the total amount of the rents.

Municipal service tax rates
The rates of the municipal services tax are set at:

10.50% for properties located within the perimeter of urban municipalities, demarcated centers, summer, winter and thermal resorts
6.50% for properties located in the peripheral areas of urban municipalities

Example
Here is an example of calculating the municipal services tax:
1) For the case of a main residence with an annual rental value of 60,000 DH located within the perimeter of urban municipalities
2) For the case of a second home with an annual rental value of 60,000 DH located in the outlying areas of urban municipalities

Designation 1) Principal residence 2) Secondary residence
Annual rental value 60,000 DH 60,000 DH
Reduction of 75% 45,000 DH 0
Tax base 15,000 DH 60,000 DH
Rate to be applied 10.50% 6.50%
Tax Calculation 15,000 x 10.50% 60,000 x 6.50%
Tax payable 1,575 DH 3,900 DH

Obligations of owners
In the same way as the housing tax, the owners must make their declarations to the tax services to comply, in particular for the declaration of completion of a new construction, the declaration of change of ownership or assignment of good.

Payment deadline and sanctions
May 31 is the deadline for payment of the municipal services tax.
If you exceed the due date, you are liable to the following penalties:

A penalty of 10%
A 5% increase for the first month of delay
An increase of 0.50% per additional month or fraction of a month
Where to pay the municipal services tax?
The payment of the municipal services tax can be made:

At the collection indicated on the tax notice
With partner banks
Or online at www.tgr.gov.ma
See also the article on the housing tax

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