Leaving Morocco: the tax steps not to overlook

Leaving Morocco does not, on its own, close the tax position of the person departing. Some steps must be anticipated before departure. Others remain possible afterwards, but become harder to carry out from a distance. This article reviews the main ones.

Tax clearance

Tax clearance, sometimes referred to as a certificate of tax compliance, confirms that the taxpayer is in good standing with the Moroccan tax administration as at the date it is issued. [VERIFY : dénomination exacte et cas dans lesquels le quitus est exigé] It is frequently requested on a permanent departure, in particular by employers, banks or foreign authorities.

Obtaining it presupposes that the tax position is genuinely up to date: returns filed, taxes paid, open files cleared. An unresolved position blocks issuance and is more difficult to deal with once the departure has taken place.

Closing your tax position before departure

Before leaving, it is prudent to take stock of your overall position: income tax returns still to be filed, taxes in progress, pending claims, and your position with the CNSS. A departure frequently leaves open points behind, which resurface years later, at the moment a document or certificate is needed.

It is also useful to gather, before leaving, the documents that will be difficult to obtain from abroad: salary and withholding tax certificates, payslips, CNSS certificates, proof of address and bank details. Recovering these documents remotely is possible, but appreciably slower.

Pending refunds do not lapse on departure

Leaving Morocco does not cause the loss of rights that arose earlier. An income tax refund claim may be continued, or started, after departure. This is notably the case for people eligible for the exemption provided by article 247-XXXIII of the General Tax Code: eligibility in respect of the months worked in Morocco survives departure, and a refund of tax wrongly withheld may be claimed from abroad, within the limitation period. [VERIFY : maintien du droit à restitution après transfert de résidence fiscale]

The limitation rules, on the other hand, keep running. Each year that passes extinguishes the amounts withheld outside the period. A right that arose during the stay in Morocco is therefore preserved, but cannot be exercised indefinitely. How the procedure works is described in our article on income tax refunds with the DGI.

Running a Moroccan procedure from abroad

A Moroccan tax procedure takes place largely in Morocco: filings in person, exchanges with the reviewing office, collection of documents. From a distance, each of these steps requires someone on the ground, whether a relative holding a power of attorney or an appointed professional. [VERIFY : conditions de représentation du contribuable auprès de la DGI]

Those concerned therefore have an interest in arranging that support before departure where possible, or in setting it up afterwards with clearly identified contacts.

Key points

• Tax clearance and bringing your tax position up to date are easier to handle before departure.
• The documents needed for future procedures should be gathered before leaving the country.
• Refund entitlements that arose during the stay in Morocco survive departure, within the limitation period.
• A procedure run from abroad requires reliable support on the ground.

This content is published for general information purposes and does not constitute tax or legal advice. The provisions cited are subject to change.