Confronted with the unprecedented crisis caused by the emergence of Coronavirus in Morocco, the Moroccan government did not remain idle. A long list of measures has been taken by the executive branch to mitigate the impact of business shutdowns caused by the COVID-19.
First, on the social side, it is a matter of preventing companies laying off staff en masse, and on the other hand, of taking measures to help companies most affected by the crisis and to postpone payment of taxes and social security contributions.
We shall see in detail what these measures consist of, which include suspending the payment of social security contributions (CNSS contributions) and the introduction of a moratorium on the repayment of bank loans to companies.
This article lists the measures the Moroccan government is taking to help companies and entrepreneurs affected by the crisis.
Coronavirus: Social measures adopted by the government
1. Introduction of a monthly lump-sum allowance
The measures concerning employees apply to all employees declared to the National Social Security Fund (CNSS) in February 2020 as being out of business by companies in difficulty that cannot anymore pay their employees salaries.
They will thus benefit from a monthly lump-sum allowance of MAD 2,000 net, family allowances, and AMO benefits. They will also be able to postpone the repayment of their bank loans, until June 30, 2020. At this level, the allowance from 15 to March 31, 2020, is set at MAD 1,000.
For the implementation of these measures, social security has created a portal accessible at this address covid19.cnss.ma.
If the employer is a member of the DAMANCOM portal, the system will prompt the employer to enter his DAMANCOM portal login and password. However, if the employer is not a Damancom member, the portal will assist the employer in creating an account. He will receive his login and password by e-mail.
After this step, the portal will present to the employer the list of employees declared for February 2020. The employer will then select the staff in temporary cessation. Thus, the chosen team on the list will receive the lump-sum allowance at the end of each month of the period concerned, by bank transfer.
2. Suspension of the payment of social contributions
For the second measure, it concerns, in particular, the suspension of the payment of social security contributions due to the CNSS for the period from March 1 to June 30, 2020, with free remission of late payment penalties for this period for employers in difficulty, affiliated to the CNSS.
The first step of the procedure concerns the requesting employer who must fill in a form on the CNSS portal, informing about his affiliation number, accompanied by a declaration on his honor certifying his state of difficulty induced by the Coronavirus pandemic.
The CNSS applies the measure for employers who have submitted their requests via its portal. The modalities of implementation of the free remission of late payment penalties for employers in difficulty, affiliated to CNSS, are governed by a joint decision of the Ministry of Labour and the Ministry of Finance.
Coronavirus: Measures to support the cash flow of SMEs, VSEs, and professionals in difficulty
The government will implement three measures to help companies and entrepreneurs affected by the COVID 19 crisis.
These are the suspension of the payment of social security charges until June 30, 2020, the introduction of a moratorium on the repayment of bank loan installments and the refund of leasing installments until June 30 without payment of fees or penalties, and the activation of an additional line of operating credit granted by the banks and guaranteed by the Central Guarantee Fund (CCG).
Coronavirus: Tax measures for SMEs, VSEs, and the liberal professions in difficulty
Like the measures for companies, SMEs, VSEs, and the liberal professions in difficulty, there are two fiscal measures:
1- Deferral of corporate tax returns and payments
- For companies whose turnover is less than 20 MDH
The companies whose turnover for the fiscal year 2019 is less than 20 MDhs will be able if they wish to benefit from a postponement of the filing of tax returns until June 30, 2020.
For these companies, the deferral of tax obligations concerns only :
- The declaration of the taxable income;
- The complement of the corporate income tax due for the financial year 2019;
- The 1st installment scheduled for the current financial year.
These companies benefit from this deferral without any formality. The turnover declared in respect of the financial year 2018 is authoritative.
- For companies with a turnover of more than MAD 20 million
However, companies with a turnover of more than MAD 20 million will have to file their tax returns by March 31, 2020, at the latest.
With regards to the postponement of corporate income tax payment may be granted on a case-by-case basis and upon request to the tax authorities.
These companies must prove that they suffer significant economic damage due to the drastic decline in terms of business and that they are facing significant financial difficulties.
2. Suspension of tax inspections and bank account seizures
Tax audits and Notices to Third Party Holders have also put on hold until June 30, 2020.
Coronavirus: Customs measures put in place
In addition to these measures, the Customs and Indirect Taxation Administration has put in place arrangements given the current health circumstances and the threat of the spread of the Coronavirus (Covid-19). In force since March 16, 2020, they concern the limitation of access to authorized customs offices henceforth only to cases requiring the physical presence and this, until further notice.
In this regard, many services will occur online, namely customs clearance formalities for goods, exchanges with inspectors processing declarations, the application for a certificate of origin, payment of customs claims.
Similarly, requests for information or complaints can be addressed directly to the e-government via the electronic form, accessible through the link www.douane.gov.ma/requetes or by telephone on the number 0801 00 70 00 or the hotline 05 37 56 57 57. Users are strongly encouraged to use the above services and to limit their trips to customs offices as much as possible.
Coronavirus: a support fund of more than 10 billion euros
The Special Fund will provide this support to companies and employees AND will remain in force until the end of June 2020. The purpose of the Coronavirus Pandemic Management Fund is to ensure the financing of measures for the prevention and control of covid-19 and its effects.
Entitled special fund for the management of the Coronavirus pandemic "Covid-19", it is endowed with a budget of 10 billion dirhams, of which 5 billion will serve for countering the epidemic, mainly to cover the expenses of upgrading the medical system.
In response to this solidarity drive, this dedicated fund was replenished in the space of 48 hours to the tune of more than 10 billion dirhams by voluntary donations from companies and private and public institutions as well as individuals.
In addition to the State contribution, the said fund will receive the input of several organizations and institutions. In this respect and on the instructions of His Majesty the King, the Hassan II Fund will contribute up to 1 billion dirhams. A wave of solidarity, currently being expressed by the public and private legal sector as well as individuals, will make it possible to mobilize significant additional financial resources in the form of donations.
Karim Hemras
is a CPA and tax advisor. He is the founder of WeCount.ma, the accountig firm that helps foreign companies with their accounting, payroll and tax compliance, so that they can grow confidently in Morocco and Africa.
Karim Hemras
