At the core of Morocco’s effort to encourage foreign business is the 1995 Investment Charter Law, which simplified the tax code and offered tax incentives for foreign investment. Incentives include a 2.5 percent discounted tax rate for land acquisitions intended for housing developments; a 0.5 percent tax on any company contributing to capital formation or capital increase; and an exemption from registration fees when purchasing land intended for capital investment.

The Charter also shields foreign investors from paying value added tax (VAT) on imported equipment, materials, and goods, and exempts start-up firms from license fees, corporate taxes, and general income taxes for five years.

As additional incentives, Morocco has simplified its customs schedule and is improving its labor pool by investing in appropriate vocational training.

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