Tax incentives

Tax incentives

Value-added tax (VAT) on investment

Tourism investors benefit from VAT exemption on capital goods, equipment and tools acquired locally for a period of 36 months from the date on which the company starts business. For companies building their investment projects, the thirty-six (36)-month period begins to run from the date of obtaining the building permit.
For companies making an investment of Dhs50 million and having signed an investment agreement with the State, the above-mentioned exemption period begins to run either from the date of signature of the said investment agreement, or from the date of issue of the building permit.
Reference text :
Article 92-I-6° of the French General Tax Code (CGI): general tax code 
Partners : General Directorate of Taxes (DGI) 
Tourism investors benefit from VAT exemption on the import of capital goods, equipment and tools for a period of 36 months from the date of the first import operation carried out under an investment agreement to be signed with the Government.
Reference text:a
Article 123-22°-b of the CGI : general tax code 
Partners : Administration des Douanes et Impôts Indirects (Customs and Indirect Taxes Administration)

Value-added tax (VAT) on operations

Tourist accommodation and catering establishments benefit from a reduced VAT rate of 10 % ;
Rental operations for hotels, motels, vacation villages or tourist complexes, fully or partially equipped, including restaurants, bars, dance halls and swimming pools, insofar as they form an integral part of the tourist complex, are also eligible for the reduced VAT rate of 10%.
Reference text :
Article 99-2°de la CGI  general tax code 
Partners : DGI

Corporate income tax (IS)

Hotel and entertainment companies benefit from a total exemption from corporate income tax on sales in foreign currencies for a period of 5 years from the financial year in which the first accommodation/entertainment operation was carried out in foreign currencies, and the application of a rate of reduced by 20% beyond this period.
Reference text :
Article 6-B-3° of the CGI  general tax code
Partners : DGI