Attractive incentives for your projects
In addition to the tax exemptions granted under the common law, Moroccan law provides specific financial, tax and customs advantages to investors, as part of agreements or investment contracts to be concluded with the State, provided that they meet the required criteria. (Download the Factsheet )
These four advantages can be benefited from in a single investment project. And for more information on each of these advantages:
DIRECT HELP GIVEN TO INDUSTRIAL ECO-SYSTEMS
•The FDII (The Industrial and Investment Development Fund), created by the 2015 finance law was attributed a budget of 20 billion MAD up to 2020;
•The process for direct aid given to industrial ecosystems was established by the Ministry responsible for Industry, and the Ministry for the Economy and Finances during the implementation of the “2014–2020 Industrial Acceleration Plan”.
Signature of an investment agreement as part of eco-system performance contracts or offset agreements signed between the State and its partners.
Two categories of projects can benefit from FDII support: “Strategic” and “Structuring”.
1. “Strategic Project” Category
a) “Locomotive” Project
This is a project brought by a key economic actor who is looking to expand and develop its activities with a significant subsequent structuring impact on the economic fabric of its suppliers and clients. The project improves the overall competitiveness of its eco-system and deepens the company’s roots in Morocco.
Investment over 50 Million MAD (Before Tax)
Creation of at least 200 permanent jobs.
b) “Contractor” Project
This is a project brought by a contractor who holds a public order and hopes to carry out industrial compensation measures with a significant, long-term economic impact. This is particularly the cases of direct and joint-venture investment, as well as investment in training, R&D or the transfer of technology.
Public order of at least 200 Million MAD (Before Tax).
2. “Structuring Project” Category
a) “Pioneer” Project
This is a project that aims to develop a business that has never been carried out in Morocco previously or that would complement the value chain of a sector within an existing eco-system.
b)"Added value resource” Project
A project that adds value to natural resources or waste products.
c) “Local Integration” Project
This is a project brought by a contractor that aims to develop its sourcing activities from Morocco or an industrial actor based in Morocco that aims to improve the rate of local integration.
d) “Sourcing” Project
This is a project brought be a local company that is looking to establish itself and ensure the sourcing of contractors either at a local level or at an international one.
e) Project for Engineering and R&D centres
This is a project that aims to create centres for the design, development, testing and investigation of aspects of industry.
Eligibility Criteria for a “Structuring Project”
Investment of over 20 Million MAD (Before tax) or the creation of at least 50 permanent jobs.
a) An overall bonus for tangible and intangible investment, up to 30% of the total investment amount (before tax). This bonus covers the following areas:
•Cost of purchasing or renting real estate, professional buildings and industrial equipment;
•Technical assistance charges;
•Expenses related to research and development, innovation and creation (including the cost of developing new models/ collections, taking care of skilled salaries, charges related to control and testing, purchase of the collection, and external expertise linked to innovation and creativity);
•Start-up costs for the first three years following the actual start of business.
b) An export growth bonus, up to 10% of the additional export turnover;
c) Annual award for the substitution of imports:
Companies that are part of an eco-system and that have transferred at least 60% of their input purchases initially carried out abroad to industrial suppliers installed in Morocco, can benefit from an annual bonus for the substitution of imports. This can be up to a maximum of 2% of said purchases.
d) Annual aid to install in Morocco:
During the 2015–2020 period, foreign companies that are not industrially based in Morocco, and clients of companies that are part of ecosystems subject to a performance contract that then open representation offices in Morocco, can benefit from an annual aid incentive to install in Morocco. This aid can reach a maximum of 2% of the additional annual turnover generated by their orders addressed in Morocco.
DIRECT AID GRANTED AS PART OF THE INVESTMENT CHARTER
The Industrial and Investment Development Fund (FDII) covers operations relating to the certain advantages granted to investors and taken care of by the State. The Investments must respond to specific criteria and conform to the investment charter and its application decrees (decrees n°2-15-625 modifying decree n°2-00-895 taken in application of articles 17 and 19 of the framework law n°18–95 that forms the basis of the investment charter).
Signature of an investment agreement with the State.
The investment project must respond to at least one of the follow criteria:
• Invest an amount of at least 100 Million MAD;
• Create at least 250 stable jobs;
• Be carried out in at least one of the provinces or prefectures covered in Decree n° 2-98-520 of 5 Rabii I 1419 (30 June 998);
• Ensure the transfer of technology;
• Contribute to protecting the environment.
• Real Estate Support: State participation in charges related to the purchase of the necessary land for the investment program. This can reach up to 20% of the total cost of the land;
• External infrastructure: State participation in the external infrastructure expenses necessary to carry out said program. This can reach a total of 5% of the overall investment program amount. That said, this rate may reach 10% when it involves investment in the spinning, weaving or textile embellishment sector;
• Professional Training: State participation in the professional training fees anticipated in the investment program. This can reach up to 20% of the cost of this training.
NB. The advantages anticipated in the present article can be accumulated however total State participation cannot go beyond 5% of the overall amount of the investment program. That said, in cases where the investment project is planned in suburban or rural areas or when it involves investment in the spinning, weaving or textile embellishment sector State participation can reach 10% of the overall investment amount.
Framework agreement related to the support to industrial investment, signed on the 15th, March 2016, between the Hassan II Fund for Economic and Social Development (FHII), the Industry Directorate of the Ministry of Industry, Trade, Investment, and Digital Economy, and the Ministry of Economy and Finance.
Signature of an investment contract with the FHII
New investment projects (creation or extension) can benefit from a contribution from the FHII if they comply with all of the following requirements:
a) Automotive, aerospace, electronics industries:
b) Chemical, parachemical industries:
c) Pharmaceutical industry:
d) Manufacturing activities linked with nanotechnologies, microelectronics and biotechnologies
Financial contribution, for building and equipment, capped at 15 % of the total investment and capped at 30 million Dirhams, as follows:
a) In case of acquisition of the land and construction of the buildings:
10% of the cost of land acquisition and buildings construction
b) In case of buildings acquisition:
10% of the cost of acquisition of the building
c) In case of rental* of the land and construction of the buildings:
100% of the land rental cost, based on the 6 first years and a maximum monthly rent of 7.50 Dirhams per square meter before tax, within the limit of a single maximum contribution of 540 Dirhams per covered square meter m2 for constructed buildings, or 10% of the construction cost.
d) In case of rental* of the buildings:
100% of the buildings rental cost, based on the first 2 years and a maximum monthly rent of 30 Dirhams per square meter before tax.
(*) : The rental contribution is reserved for projects located in specific industrial areas, of which the list is set down by decision of the Ministry in charge of Industry. The rental contribution is subject to the signature of a rental contract of at least 6 years duration.
Brand new capital goods
Contribution capped at 20% of the purchasing cost of brand new capital goods (excluding import duties and taxes)
Note: eligible investment projects in the field of equipment manufacturing for the car industry can benefit from a contribution capped at 20% of the cost of used capital goods specifically used for stamping, plastic injection, tools and moulds manufacturing.
Hassan II Fund for Economic and Social Development
Businesses that commit to making an investment of an amount equal to or greater than one hundred (100) million dirhams can benefit, as part of agreements to be concluded with the government, from exemption from import duty and the value added tax applicable to goods, materials and tools needed for their project and imported directly by the companies or on their behalf.
This exemption is also granted to the parts, spare parts and accessories imported at the same time as capital goods, machinery and equipment for which they are intended. The investment must be made within thirty-six (36) months from the date of the signature of the abovementioned agreement.
Equipment goods, materials and tools needed to achieve investment projects involving an amount higher than or equal to MAD 100 million are exempt from VAT on imports within the framework of an agreement concluded with the State, in favor for the beneficiaries during a period of thirty six (36) months from the start of business. This exemption is also granted to parts, spare parts and accessories imported at the same time as the aforesaid equipment.