As the new year unfolds, Tangier remains abuzz with discussions about the tax reconciliation process and the significant sums reportedly collected by regional tax authorities. The city witnessed a surge in last-minute attempts by traders and businesspeople to comply with the 5% levy on unreported income, which ended on December 31, 2024.
According to sources, confusion persists. In one notable case, a trader approached a downtown bank with a sum of MAD 3 million (approximately USD 300,000), seeking to deposit it and pay the 5% tax. The bank, however, declined the transaction, demanding justification for the source of the funds.
Other banks in Tangier reported similar incidents, as many individuals and traders missed the deadline to settle their tax reconciliation payments. This leaves them exposed to direct scrutiny from tax authorities.
The reconciliation scheme, which required a 5% payment on unreported income, also attracted significant participation from Moroccan expatriates. In one instance, a single migrant contributed MAD 5 million (USD 500,000) in tax, signaling a return of MAD 100 million (USD 10 million) to Morocco’s economy.
Despite these contributions, the total amount collected from Tangier’s wealthy traders and real estate developers under the program remains unknown. Sources indicate that the figure is still being compiled due to the involvement of numerous banks that processed large transactions during the program.
The tax reconciliation program has been a boon for state finances, with unexpected and substantial revenue inflows. The central tax authority has expressed satisfaction with the results, which have exceeded expectations, according to officials.
The tax reconciliation initiative was governed by Article 70 of the 2025 Finance Law, which addresses unreported income and other earnings. The law classifies such earnings as taxable if they cannot be linked to any of the predefined income categories.
This framework shaped the response of financial institutions, such as the refusal of a local bank to process a large cash deposit without documentation of its source. The law’s stipulations aim to ensure accountability and prevent financial impropriety.
As authorities finalize the reconciliation program’s figures, it remains a pivotal topic for both public discourse and fiscal policy, highlighting the complexities of integrating undocumented earnings into the formal economy.
The post Debate over tax reconciliation payments dominates Tangier’s new year financial scene appeared first on HESPRESS English – Morocco News.
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