2023 Finance Act: CFC maintains its fiscal attractiveness

CFC News, Communiqué de presse
  • An innovative system aimed at maintaining fiscal attractiveness while encouraging the financing of the national economy
  • A unified rate of 20% for income and corporate tax

Thanks to the support and engagement of both public and private stakeholders, CFC managed to maintain its fiscal attractiveness. An innovative system was introduced to maintain CFC’s competitiveness and to strengthen its position as a leading financial center in Africa.

Corporate Tax: Gradual homogenization

In line with the government’s general guidelines regarding the homogenization of the income tax rate, the 2023 Finance Act intends to gradually bring the income tax rate over 4 years to 20% or 35% depending on the net profit earned.

Companies that are granted the CFC status are subject to a 20% corporate tax rate, regardless of net earnings. Furthermore, an innovative system was introduced to maintain CFC’s competitiveness and to strengthen its position as a leading financial center in Africa.

These measures will allow CFC companies to contribute to the financing of the national economy and strengthen capital markets, through the establishment of an investment provision in equity securities.

In terms of temporary exemptions for CFC companies, newly created companies are exempt from corporate tax for their first five years of activity. Companies created before they were granted the CFC status, will benefit from a pro rata temporis.

Income Tax: The 20% rate remains in effect

The income tax rate of 20% is maintained for employees of CFC companies.

The tax package becomes clear for all parties: a 20% term rate for both corporate and income tax.

The efforts deployed by the government during the establishment of the 2023 Finance Act attest to CFC’s important role on its agenda and sends a strong signal of its intention to reinforce the regional leadership of the Casablanca financial center.

The CFC Offer: beyond fiscal measures

It should be noted that beyond the tax aspects, CFC also offers an integrated framework dedicated to exchange regulations (e.g., total freedom to manage foreign currency assets), administrative simplifications for all members (VISA business, residence permits, work contracts for foreign employees…), and access to a community of leading companies operating in 50 different African countries, all benefiting from business synergies and a concentration of expertise on the continent.

About CFC

Casablanca Finance City (CFC) is an African financial centre committed to the future of the continent. CFC enjoys a unique position, offering a full range of services and infrastructures essential to connecting its members to international business centres and markets. CFC provides day-to-day support for institutional investors to develop their activity in Africa, through a dedicated business environment. CFC has successfully established a network of over 200 member companies that cover 50 African countries. Members of the CFC community manage their African operations from a base in Casablanca, enjoying a unique lifestyle and exceptional geographical and cultural diversity.

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