Casablanca Finance City

Casablanca Finance City

CFC YOUR BUSINESS PARTNER FOR AFRICA’S POTENTIAL

Casablanca Finance City (CFC) is an African economic and financial hub located at the crossroads of continents.

Recognized as the leading financial center in Africa and a partner of the largest international financial centers, CFC has built a strong membership community of finance companies, regional headquarters of multinationals, service providers and holding companies.

CFC offers its members an attractive value proposition and quality “doing business” support to promote the deployment of their activities in Africa.Driven by the ambition to satisfy its community,

CFC is committed to promoting the African expertise of its members while stimulating synergies and business opportunities within its network.

Reform of CFC’s legal and tax framework 

Reform of CFC’s legal and tax framework

In order to strengthen its attractiveness and comply with international best practices, Casablanca Finance City undertook a series of reforms, transforming its legal and taxation frameworks. This reform does not differentiate between local or exporting activities.

The said reforms were carried out based on the application of several legal texts:

The reform focuses mainly, on the following aspects:

  1. Broadening of eligible activities
  2. Reinforcement of compliance rules
  3. Process simplification for granting the CFC status

Following this reform, the rate card for the CFC status has been revised. It has been modified as follows:

  • An application fee is paid to CFCA upon filing of the status request. It is calculated based on the type of company as well as its size and total years of activity.
  • The annual fee is paid to CFCA before March 31 of each year, following the closing day of the accounting year. It is also calculated by type of company and now includes two variables:
    • The nature of the business activity entering into force from January 1, 2022
    • Contribution to the development of the CFC in terms of workforce size entering into force from January 1, 2021

To get an estimated rate card for your company, please reach out to your key contact at CFC.

1. Broadening of eligible activities

Following the entry into force of the decree-law on the 1st of October, the CFC status has since opened up to six new business activities: investment companies, mutual investment funds, financial investment advisers, crowdfunding platforms, trading companies and regional headquarters of multinational companies. The latter can now invoice transactions for goods and services within the group, and to third party entities. This expansion will allow CFC to increase the flow of investments.

*Holding companies will henceforth be considered as Financial Institutions, regardless of the share they hold in the capital of their international subsidiaries, majority or not.

* HQ’s will now be able to invoice transactions for goods and services within the group, and to third party entities.

2. Reinforcement of compliance rules

This reform also includes new compliances rules for CFC companies:

  • Provide an added value to the development of CFC
  • The general manager, must reside in Morocco
  • Allocate a minimum of operating expenses in line with the activity of the company
  • At least one senior executive must have qualifying international experience
    • Minimum of 3 years for service providers (administrative, technical, ancillary, trading)
    • Minimum of 1 year for all other activities

In the event that these requirements are not met, penalties may apply as stated by the law.

  • 12 month suspension of the CFC status, with possible withdrawal
  • Penalty fees for failure to respect submission deadline of annual report

Companies who’ve obtained the CFC status before October 1, 2020, have until December 24, 2021 to be in compliance with the new regulations.

3. Process simplification for granting the CFC status

The CFC status process has been streamlined for maximum efficiency. CFC Authority assesses and approves the application for the Status. CFCA, then, submits proposals for granting “CFC Status” to the Ministry of finance. For regulated activities, CFCA requests an opinion from the relevant supervisory authority.

The processing of requests is henceforth reduced to a period of 30 working days.

Tax Reform

Another major reform relates to CFC’s tax framework:

  • A corporate tax of 15% is applied to all CFC companies, except banks and insurance/reinsurance companies
  • The new regime includes the exemption from withholding tax on dividends distributed to residents and non-residents

Transitional period: CFC members still benefiting from the former tax regime have until December 31, 2022 to comply.

By January 1, 2023, all CFC companies will be subject to the same corporate tax (15%).

*except banks and insurance/reinsurance companies

These new regulations will improve Casablanca Finance City’s value proposition and reinforce its international credentials as a trusted  financial hub in Africa

For any questions or additional information, contact us: contact@cfca.ma

CFC IN NUMBERS

1st Financial Center in Africa (GFCI, 2021)

~200 companies with CFC Status

50 African countries covered by CFC’s companies

1st green financial center in Africa and the Middle-east (GGFI, 2021)

21 South-South partnerships

15 partnerships with international financial centers

OUR VALUES

RESPECT FOR THE ENVIRONMENT

Preserving the environment is a prerequisite for the sustainable development of CFC.

Preserve the integrity and diversity of nature by minimizing the impact on the environment, by considering the environmental impact of all decision-making and promoting the sustainable use of natural and energy resources.

RESPECT FOR THE INDIVIDUAL

Respect dignity and human rights by appreciating the differences. Every company with the “CFC Status” must ensure compliance with the labor regulations in force and refrain from using forced labor or child labor. In addition, the intolerance of discrimination towards staff, the hiring candidates, customers and business partners or suppliers. They must also respect and value the diversity of people and promote their personal and professional development taking into account their differences.

INTEGRITY

Act with integrity and respect for professional ethics.

In order to maintain CFC’s reputation, balance and prosperity and build a culture of trust and accountability, CFC members must act with integrity and ethics in their dealings with their customers and other market players.

COMPETENCE

Demonstrate competence and ensure the adequacy of all means and services.

Every company must act with skill and diligence in relation to the services it provides. To serve this purpose and to carry out its activities, it must always be sufficiently equipped to meet the demands of its activities and in conformity with the international standards, namely in terms of human resources, competent resources, efficient and secure technical resources and an appropriate organization and adequate internal procedures.

TRANSPARENCY

Promote transparency and confidentiality of data.

To build trust and promote informed and accountable decision-making, it is essential to enable transparency and to refrain from deceptive or fraudulent practices and acts, while respecting the obligations of professional secrecy, confidentiality and protection of personal data.

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