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Morocco introduces new tax rules for streaming service providers

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To regulate the activities of streaming service providers like Amazon, Netflix, and others, Morocco has implemented new tax regulations under the 2024 Finance Law. 

These changes require companies to register in Morocco, disclose their revenues, and pay taxes.

Under the Finance Law for 2024, the government aims to impose new tax obligations on foreign companies providing remote services, such as AWS, Netflix, and Airbnb. 

This move seeks to regulate their operations and the digital services these companies offer to Moroccan clients and ensure fair tax contributions.

According to Article 115 of the proposed law, non-resident remote service providers without a presence in Morocco must register on a dedicated electronic platform and obtain a tax identification number if they provide digital services to Moroccan clients, whether taxable or not.

Once registered, these providers must declare their monthly revenues earned in Morocco for services provided to non-taxable clients and pay the corresponding tax within the specified timeframe without the possibility of tax deduction.

These companies must also maintain a record of services provided, electronically stored, and made available to the tax authorities upon request for ten years. 

The well-known players operating in Morocco without a direct physical presence include Amazon Web Services (AWS), Google Cloud Platform, Netflix, Spotify, Airbnb, and Coursera. 

These measures are expected to increase tax revenues through the taxation of services provided to Moroccan clients and promote fair competition between local and foreign providers by ensuring all market players are subject to the same tax rules.

These measures will also align Morocco with international standards. They will apply to services purchased from platforms such as Netflix, Amazon, and companies producing gaming applications. 

Services will be subject to VAT based on the tax residence of subscribers or clients rather than the place of delivery.

The tax authority has established an indicative list of services subject to VAT. 

The list includes the provision and hosting of computer sites, remote maintenance of programs and equipment, supply of software and applications, as well as the condition of digital content such as music, movies, and online games.

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