Morocco (CFC/Tax) status?

[saasman]

I'm wondering if there's anyone from Morocco here. I'm wondering what's the status of CFC / CRS in morocco?

I work in the web development and saas field on a freelance basis, most of my revenue comes from US companies and clients.

as a moroccan tax resident,

- Are you allowed to open and maintain a foreign company, with a foreign business bank account? (e.g UAE freezone, US LLC) i know individuals bank accounts abroad aren't allowed
- Are there CFC rules here? Are you taxed on a foreign company even if you don't draw any money personally if it's considered a shell company by morocco (single employee)?
- What's an optimized way for a moroccan resident/citizen to stay in morocco and receive money (e.g. $10k/mo) without paying a ridiculous 38% income tax? i heard dividends are taxed low somehow?

 

[saasman]

To clarify more:

Important to have: US bank account or EMI (transferwise?) to make it easy for my US clients to wire me money.
Bonus to have: Payment processing

 

[Ness]

saasman said:
I'm wondering if there's anyone from Morocco here. I'm wondering what's the status of CFC / CRS in morocco?

I work in the web development and saas field on a freelance basis, most of my revenue comes from US companies and clients.

as a moroccan tax resident,

- Are you allowed to open and maintain a foreign company, with a foreign business bank account? (e.g UAE freezone, US LLC) i know individuals bank accounts abroad aren't allowed
- Are there CFC rules here? Are you taxed on a foreign company even if you don't draw any money personally if it's considered a shell company by morocco (single employee)?
- What's an optimized way for a moroccan resident/citizen to stay in morocco and receive money (e.g. $10k/mo) without paying a ridiculous 38% income tax? i heard dividends are taxed low somehow?
Click to expand...

In Morocco you are taxed on your worldwide income so you can have a foreign company owned by a Moroccan one.
If the MAD company own the US LLC, you are exempted on foreign revenue taxes for 4 years if I remember.
The best thing for a Moroccan is to have all that hidden from Taxman. Morocco didn't signed FATCA even if the banks comply with it. Just play smart .

 

[KHer0]

Looking for the same for egypt

No taxes on any personal account transfers. All I need is payment processor but no luck till now

 

[saasman]

Ness said:
In Morocco you are taxed on your worldwide income so you can have a foreign company owned by a Moroccan one.
If the MAD company own the US LLC, you are exempted on foreign revenue taxes for 4 years if I remember.
The best thing for a Moroccan is to have all that hidden from Taxman. Morocco didn't signed FATCA even if the banks comply with it. Just play smart .
Click to expand...

Hi @Ness ,

Thanks for the response, my options i guess are:

A) Create a non-disregarded company somewhere abroad and pay dividends to my personal account in Morocco where i'll be taxed on it locally for 15%.
- I'm even considering a UAE company and use it directly for personal expenses since it's 0 tax.
- An isolated company will not work if there's CFC rules in morocco and US, UK, and others have implemented UBO.
B) Create a US LLC or UK LLP that's owned by a SARL in morocco, and then pay myself in morocco in dividends?

What do you think is the best option?

Things to note:
- I'm not keen on plan B and transferring my entire revenue into Morocco where i can't pull it out of Morocco later in life (due to currency restriction) to invest in foreign real estate or stock and enjoy my life.
- From my understanding morocco signed fatca and crs, and USA now asks company owners to file UBO disclosure form so i'm worried if morocco has CFC rules and US reports to morocco then that's problems.

 

[Jassu]

Any news about this topic?

I am interested because i am a dual citizen EU and Moroccan and I have a company set up in EU invoice a UK company for my services (around 10-15K Euros a month)
Thinking of the best approach to avoid taxes all together? I have heard some people they just use another company to invoice the EU one to wire the funds back to Morocco? Currency restrictions makes it hard but...

 

[SasuT]

saasman said:
I'm wondering if there's anyone from Morocco here. I'm wondering what's the status of CFC / CRS in morocco?

I work in the web development and saas field on a freelance basis, most of my revenue comes from US companies and clients.

as a moroccan tax resident,

- Are you allowed to open and maintain a foreign company, with a foreign business bank account? (e.g UAE freezone, US LLC) i know individuals bank accounts abroad aren't allowed
- Are there CFC rules here? Are you taxed on a foreign company even if you don't draw any money personally if it's considered a shell company by morocco (single employee)?
- What's an optimized way for a moroccan resident/citizen to stay in morocco and receive money (e.g. $10k/mo) without paying a ridiculous 38% income tax? i heard dividends are taxed low somehow?
Click to expand...

Jassu said:
Any news about this topic?

I am interested because i am a dual citizen EU and Moroccan and I have a company set up in EU invoice a UK company for my services (around 10-15K Euros a month)
Thinking of the best approach to avoid taxes all together? I have heard some people they just use another company to invoice the EU one to wire the funds back to Morocco? Currency restrictions makes it hard but...
Click to expand...

Hi guys do you have any news since?