The tax amnesty program launched by Morocco has crossed a historic threshold, far exceeding the objectives set, with declarations totaling 100 billion dirhams. This program, introduced in the 2024 finance law, has been hailed as an exceptional success, generating significant tax revenue in a difficult economic context where the government needs funding for its social, educational and health programs.
The dynamic of tax collection has enabled the State to achieve a remarkable feat: the final figures, recently updated, reveal that the total amount of declarations amounted to 100 billion dirhams, a figure which exceeds forecasts and illustrates the favorable response from taxpayers. Among these 100 billion, 60 billion dirhams were declared in the form of cash deposits in the banking sector, while the remaining 40 billion mainly consist of real estate acquisitions and contributions to associates’ current accounts.
The amnesty program, which ended on December 31, 2024, imposed a contribution rate of 5% on the amounts declared, thus generating tax revenue estimated at 5 billion dirhams for the state budget in 2025. This This figure, although modest compared to the scale of the declarations, nevertheless constitutes an essential contribution to the country’s public finances. The banks, responsible for managing the declarations, are responsible for transferring these revenues to the Treasury within 30 days following the declaration, thus ensuring a rapid inflow of funds to support public finances.
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The scale of this tax collection operation not only exceeded the government’s expectations but also made it possible to collect twenty times more than the results of the 2020 tax amnesty. At the time, the General Directorate of Taxes had hoped for declarations of around 60 billion dirhams, an already ambitious target which was largely outclassed by cash deposits alone.
This success takes place in a context of strong monetary circulation in Morocco, with an overall amount of liquidity reaching nearly 426 billion dirhams at the end of October 2024, according to the latest data from Bank Al-Maghrib. The amount declared as part of this amnesty thus represents almost a quarter of the money supply in circulation in the country, highlighting the importance of this influx of funds in strengthening public finances.
The program mainly targeted people who made undeclared profits and income before January 1, 2024. It covered a wide range of assets, from bank deposits to movable and immovable property, including advances on current accounts of associates and loans granted to third parties. This diversity of assets targeted by the amnesty made it possible to reach a large base of taxpayers and encourage them to regularize their tax situation.
The last day of the amnesty was marked by a record crowd in tax administration offices and bank branches, demonstrating the scale of participation in this program. Many citizens have chosen to take this opportunity to comply with tax legislation, rather than face a 37% tax rate on undeclared funds from January 1, 2025. This decision, although binding on some, allowed Morocco to raise funds essential to the pursuit of its economic and social objectives.
This tax amnesty program is also part of a broader framework of reforms and efforts aimed at strengthening the country’s economic governance. It was set up in a context where the Moroccan government faces an urgent need for funding for its essential programs in key sectors such as health, education and social. These areas, which are experiencing major challenges, particularly due to budgetary tensions and increased funding requirements, now benefit from increased financial support thanks to this initiative.
This tax amnesty is part of Morocco’s ongoing efforts to strengthen its national framework to combat money laundering and the financing of terrorism. These efforts recently allowed the country to exit the gray list of the Financial Action Task Force (FATF), a decision that demonstrates the kingdom’s commitment to cleaning up its economic practices and promoting transparency in financial flows.
