To guarantee the credibility of the investment bonus system, a new directive from the Order of Chartered Accountants rigorously regulates the role of certification of professionals. Details.
In a context of strong competition to attract foreign investments, Morocco is strengthening its regulatory framework for granting investment bonuses. Published on December 18, 2024, a recent directive from the National Council of the Order of Chartered Accountants of Morocco (OEC) aims to define a clear framework for the certification of eligibility criteria for investment bonuses provided for by law 03-22.
According to the OEC, “this directive provides transparency on the role and diligence of the accountant responsible for issuing the certificates required for the release of bonuses”. It must be said that the accountant or auditor plays a vital role in the process of granting investment bonuses.
In accordance with the agreements signed between the State and the beneficiary company, it is up to him to verify the consistency between the investor’s declarations and the accounting and extra-accounting reality of the company. If, for example, a company declares having created 100 jobs to benefit from the employment-related bonus, the accountant must ensure that these 100 new positions appear in the account books, social declarations, employment contracts, etc.
Its role is therefore essential to guarantee the sincerity of the information provided and to fight against fraud. Without this independent verification, the risk of seeing bonuses granted unduly on the basis of erroneous data would be far too high.
Four targeted bonuses
The directive specifically concerns four types of bonuses: “The bonus linked to investments, the bonus linked to stable jobs, the bonus linked to gender and the bonus linked to local integration”. Other premiums provided for by law 03-22 are not covered.
First, the investment bonus encourages companies to carry out investment projects that create jobs and wealth. Thus, a company that builds a new factory could benefit from this bonus.
Second, the premium linked to stable jobs rewards companies that offer permanent contracts rather than precarious jobs.
Third, the gender bonus aims to promote professional equality between men and women, by encouraging companies to recruit and promote more women.
Finally, the bonus linked to local integration encourages the territorial anchoring of companies, for example by promoting the hiring of local staff or sourcing from regional suppliers.
Detailed diligence
According to the directive, the accountant must first examine the investment agreement signed between the investor and the government to identify eligible premiums. Then, he must verify the concordance between the data provided by the investor and the supporting documents, by carrying out the necessary diligence according to his professional judgment.
As part of the attestation missions for the release of investment bonuses, the accountant must carry out specific procedures depending on the type of bonus concerned. These procedures aim to ensure consistency between the data declared by the investor and the supporting documents.
For the bonus linked to investments, a bonus released in three installments (40%, 30%, 30%), the accountant must check the consistency of the acquisition invoices for fixed assets, delivery notes and the corresponding bank payments with the investment amounts declared by the company.
Thus, for a company which has declared an investment of 100 million dirhams for its eligible project, when releasing the first tranche (40%), the accountant must verify that the invoices, delivery notes and bank payments justify an investment of at least 40 million dirhams.
For the employment-related bonus, also released in three installments, the accountant must ensure the existence of employment contracts for the declared jobs, the registration of employees with the National Social Security Fund (CNSS) and the effective declaration of salaries for a minimum period of 18 months.
For a company which declares the creation of 150 jobs, when releasing each tranche, the accountant must verify the employment contracts, the CNSS registrations and the corresponding pay slips to ensure the actual employment of these 150 people over the required period.
Specific due diligence for bonuses linked to gender and local integration
In addition to bonuses linked to investments and employment, the directive also regulates the diligence of the accountant for the certification of bonuses promoting gender equality and the local integration of investment projects. For the gender-related bonus, released in a single tranche, the accountant must verify the calculation of the “female payroll / total payroll” ratio declared by the company, which must be greater than 30%.
If, for example, the company declares a ratio of 35% to benefit from the gender-related bonus, the accountant must control the calculation of this ratio by reconciling the female payroll and the total payroll from the financial statements. payroll and social declarations. As for the local integration bonus, it is released in a single tranche to reward projects promoting local economic integration. The accountant must check the local integration rate declared by the company, calculated on the basis of the summary statements (annual accounts).
Thus, for a company which declares a local integration rate of 65% for its project, the accountant must analyze the annual accounts (income statement, balance sheet, annexes) to verify that local purchases, subcontracting local costs and other local charges represent 65% of the total operating costs. In all cases, the accountant must apply appropriate audit procedures to issue his certificate with complete independence and objectivity.
A rigorous mission supervised by the OEC
The Order of Chartered Accountants (OEC) insists on the rigor expected of professionals in their certification missions for the granting of investment bonuses. It is not just a matter of putting a simple stamp of convenience.
As the OEC points out, “the certificate requires the professional to have an obligation of means, that is to say the implementation of the required due diligence”. Concretely, this means that the accountant must carry out all the necessary controls and verifications with professionalism. For example, to certify eligibility for the bonus linked to local integration, it will be necessary to verify the actual domiciliation of suppliers and subcontractors, the origin of purchases and supplies, etc.
Minimum deadlines are planned to allow this in-depth work. A mission letter must also be formalized beforehand, and a letter of affirmation obtained from the company before final issuance of the certificate, so as to clearly define the respective responsibilities. This rigorous framework aims to guarantee the credibility and reliability of the system.
A lever for the attractiveness of foreign investments
This new directive on the regulation of investment bonuses will have a major economic impact by strengthening the confidence of international investors in Morocco. Note that Morocco has managed to maintain and increase its attractiveness for foreign direct investments (FDI) thanks to favorable policies.
With 32.5 billion dirhams in FDI received in 2023, the Kingdom confirms its attractiveness to multinationals. And this directive, which establishes a reinforced legal framework and rigorous processes, will further improve its image. Large foreign groups will be reassured to see that the granting of bonuses follows clear rules, with independent verification by accountants.
Thanks to this new framework, investors will be able to be certain that such bonuses are well deserved and awarded in complete transparency according to objective criteria.
Ultimately, this OEC directive provides a valuable compass for investors wishing to benefit from investment bonuses. By clarifying the role and duties of the accountant, it strengthens the credibility of the process and thus contributes to the economic attractiveness of Morocco.
Bilal Cherraji / ECO Inspirations
