Thanks to a general public and private mobilization, the Finance Law (LF) for the year 2023 has preserved the tax attractiveness of the financial center Casablanca Finance City (CFC).
This is an innovative device that has been introduced to maintain CFC’s competitiveness and anchor its positioning as a leading financial center in Africa, said a statement from CFC.
Corporation tax (IS): eventual homogenization
In line with the government’s overall guidelines regarding the standardization of corporate tax rates, the 2023 Finance Law plans to gradually bring corporate tax to 20% or 35% over 4 years depending on the net profit made. .
Companies with CFC status will be subject to a CIT rate of 20% regardless of the net profit made. In addition, an innovative device was introduced to maintain the attractiveness of CFC and anchor its positioning as a leading financial center in Africa. This mechanism will enable CFC companies to contribute to the financing of the national economy and to the revitalization of the capital market, through the constitution of a provision for investment in equity securities.
With regard to temporary exemptions for CFC companies, newly created companies will benefit from total exemption from corporate tax for the first 5 years. Any company created before CFC status was granted will benefit from the exemption pro rata temporis.
Income Tax (IR): maintenance of the rate of 20%
The IR rate of 20% is maintained for employees of CFC companies. The tax offer thus becomes readable and clear for all: a single rate of 20% in the long term, both for IS and IR.
The massive efforts made by the government during the establishment of the LF 2023, attest to the importance of CFC on its agenda, and send a strong signal of its intention to strengthen the regional leadership of the Casablanca financial center.
The CFC Offer: beyond tax measures
It should be remembered that beyond the tax aspects, the CFC offer also includes a dedicated framework for foreign exchange regulations (e.g. total freedom to manage currency assets), administrative facilitations for all of its members (VISA business , residence permits, employment contracts for foreign employees, etc.) and access to a community of leading companies operating in 50 African countries, thus benefiting from business synergies and a concentration of expertise on the continent.
CFC is an African financial center committed to the future of the continent. Benefiting from a unique position, CFC has all the necessary services and infrastructures to connect its members to business centers and international markets.