The « departure tax clearance » : what the law actually provides

Definition

What this covers

The « departure tax clearance » is presented as a certificate confirming that the taxpayer has settled their obligations, and as a precondition to departure. Reading the code does not bear this out : the word « quitus » appears in it zero times — body of the code, schedules and table of contents included. No article creates a document of that name, and no provision makes the departure of an individual conditional on a closing document. Neighbouring expressions do not fill the gap : « tax compliance » appears only once, in article 117-IV ; « tax residence », nowhere.

The point is not that no document is ever issued, but that no provision either requires or guarantees its issue : a document that no article provides for cannot be required.

Scope

Who is affected

• Those preparing a permanent departure and looking for the closing document they have been told about, or from whom a foreign third party requests proof of their Moroccan tax position.
• Non-residents engaged in a property sale in Morocco, for whom a certificate does genuinely exist — but one that relates to the property.
• Those carrying on an activity in Morocco and invoicing taxable customers, for whom a tax compliance certificate does exist — in an entirely different function.

The need for proof is real. What the law does not provide is a single document answering that need under the name of a clearance.

Applicable rules

What the code provides instead

The departure return, its receipt and the payment slip. A taxpayer who ceases to have their tax domicile in Morocco must send their return by registered letter with acknowledgement of receipt, or deliver it against a receipt, no later than thirty days before departure art. 85-I CGI. The tax is paid spontaneously within the same period art. 173-I and becomes immediately payable in full art. 175-I ; the last paragraph of article 173-I adds that « payment of the tax is made by means of a payment slip issued by the administration ». The receipt and that payment slip are the documents the code attaches to this operation : it names no other.

The collection department's certificate — on a property, not on a person. Any deed transferring or disposing of a property presented for registration is withheld « until production of a certificate from the collection departments evidencing payment of the taxes and duties charged on that property and relating to the year of the transfer or disposal and to earlier years » art. 138-I. The same document is required upstream of those who draw up the deed art. 139-IV. The certificate follows the asset, not its owner.

The tax compliance certificate — a supplier's document. The code names a « certificate evidencing their tax compliance in respect of the obligations to file and pay the taxes, duties and levies provided for by this code », issued « less than six (6) months previously » art. 117-IV. Its function is strictly defined : a supplier of capital goods and works who does not produce it to their taxable customer has VAT withheld by that customer, to the extent of 75 %, rising to 100 % where it is not produced art. 117-V. An instrument of VAT compliance — not a document for leaving the tax territory.

And as to the rest, silence. The only general rule on obtaining a document fits in a single sentence : « Applications, certificates and other services requested by taxpayers in respect of the taxes, duties and levies provided for by this code shall be submitted and issued by electronic means » art. 169 bis. A channel, and nothing more : no list of documents, no conditions, no time limit for issue, no remedy in the event of a refusal.

Deadlines and limitation periods

The timeline

1. No later than 30 days before departure

   Departure return filed with the inspector for the place of tax domicile, by registered letter or delivered against a receipt art. 85-I.

2. Within the same period

   Spontaneous payment of the tax due, by means of a payment slip issued by the administration art. 173-I, the tax being immediately payable in full art. 175-I.

3. Less than 6 months

   Maximum age of the tax compliance certificate that may be relied on for VAT withholding purposes art. 117-IV.

4. Before any transfer deed

   Production of the collection department's certificate covering the taxes and duties charged on the property, for the year of transfer and earlier years art. 138-I and 139-IV.

5. Until 31 December of the 4^th year

   Assessment period art. 232-I, extended to at most ten years for years not filed art. 232-VIII-15°. No document discharges that period.

That last point is the most important : the code knows of no document whose issue would close a taxpayer's position. A clearance, if one existed, would not produce that effect.

Documents and supporting evidence

What the file contains

• The departure return and its receipt : the document the code expressly attaches to the formality art. 85-I.
• The payment slip : issued by the administration, the instrument for payment of the tax due art. 173-I, last paragraph.
• Returns and payments for years still within the assessment period : the position over the whole period still open to assessment art. 232.
• Evidence of withholdings suffered : amounts withheld at source on Moroccan-source income.
• Documents specific to the transaction in question : the collection department's certificate on a property sale art. 138-I, the tax compliance certificate where invoicing a taxable customer art. 117-IV.

The list is indicative ; the exact composition depends on the circumstances.

Points to watch

What can derail a file