Morocco to Grant Temporary Corporation Tax Exemption for Defense Manufacturing Firms

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Morocco’s Government Council approved on Thursday a draft decree expanding tax exemptions to include companies manufacturing defense and security materials, weapons, and ammunition. The draft decree No 2.24.966, amends the original decree (No. 2.17.743 of June 19, 2018) which outlines specific industries eligible for a temporary exemption from corporation tax, as stipulated under Article 6 (II-B-4°) of Morocco’s General Tax Code. The measure was presented by Abdellatif Loudiyi, Minister Delegate to the Head of Government in charge of National Defense, on behalf of Fouzi Lekjaa, Minister Delegate to the Minister of Economy and Finance, in charge of the Budget. According to Government Spokesman Mustapha Baitas, the decree aims to stimulate growth in the defense sector by extending tax incentives to manufacturers of defense and security equipment.