LEATHER

Under the Investment Charter, the FPI offers partial coverage by the Government of certain expenses related to the acquisition of property (up to 20% of the cost of land), external infrastructure (up to 5% of the total amount of the investment programme, or 10% in the case of an investment in the sector of spinning, weaving or finishing) and vocational training (up to 20% of the cost of the training). These contributions may be combined as long as the total contribution of the state does not exceed 5% of the total investment programme; or 10% in the case of investment in the sector of spinning, weaving or finishing; or when the investment project is located in a suburban or rural area. Eligibility criteria: The investment project must meet at least one of the following five criteria: To be located in one of the provinces or prefectures mentioned in Decree No. 2-98-520 dated 5 Rabii I 1419 (30 June 1998);

Tax incentives are provided for by article 123-22°-a) of the General Tax Code and Article 7.1 of finance law No. 12-98 for the 1998/9 budget year as amended and supplemented by the following:

SMEs in the sector may benefit from special support within the programmes developed by Maroc PME:

A free trade zone (ZFE) is a specified area of land devoted to export activities for industrial purposes and related service activities. Each free zone is created and delimited by a decree that determines the nature and business activities that can be established there.

The operational free trade zones are located at Tangier (Tanger Free Zone – TFZ and Tanger Automotive City – TAC), at Kenitra (Atlantic Free Zone – AFZ), at Casablanca (Midparc), at Rabat (Technopolis) and at Oujda (Technopole d’Oujda).

To obtain free zone status under law No. 19-94, companies must have obtained authorization from the local commission of the free export zone, which is presided over by the wali or governor of the region, and must make at least 70% of their turnover from exports.

Free zone status allows for the exemption of foreign trade and exchange controls, as well as access to the following state aid:

Tax incentives resulting in:

Customs benefits:

Administrative facilitations:

1. • Support for material investment (property, construction, installations, machines, commercial networks for national brands…) and immaterial investment (creativity, innovation, design, technical assistance…), through the Industrial Development and Investment Fund (FDII). This support takes the form of direct aids, financing up to 30% of the overall tangible and intangible investment.
   • Strengthening the Morocco offer through the Moroccan Investment Development Agency and Maroc Export.
   • Upgrading the regulatory framework and the introduction of quality labels,
   • Structuring the upstream sector,
   • The deployment of best efforts for the integration of the informal sector (under-invoicing on imports, support for small business and self-entrepreneurs ...),
   • The establishment of a training scheme, in partnership with training institutions, including OFPPT,
   • Access to property at an attractive price (96,7 hectares reserved for the sector).
   • Access to bank financing through the development of an integrated offer dedicated to investment and operating funding,
   • Backing of the sector’s SME’s and self-entrepreneurs as part of the Government/ANPME (National Agency for the Promotion of Small and Medium-sized Enterprises) agreement 2015-20120
   • Encouraging foreign clients, the customers of the ecosystem’ of companies, to settle down and open sourcing offices in Morocco.
   • Represent an amount of 200 million dirhams or more over a 3-year period;
   • Create a minimum of 250 stable jobs over 3 years;
   • Provide technology transfer;
   • Contribute to the protection of the environment.
   • The exemption from import duty on capital equipment, materials and tools necessary for the implementation of an investment project with a total cost greater than 200 million dirhams during 36 months after the signing of the investment agreement; this exemption is extended to parts, replacement parts and accessories imported at the same time as the aforementioned equipment;
   • The exemption from VAT on imports of capital equipment, materials and tools necessary for the implementation of an investment project with a total cost greater than 200 million dirhams until 36 months after the start of activity by the company or from the date of issuance of the building permit, and which may be extended by six months in the event of force majeure (renewable once); this exemption is extended to parts, replacement parts and accessories imported at the same time as the aforementioned equipment.
2. IMTIAZ CROISSANCE
3. ISTITMAR CROISSANCE
4. AUTO-ENTREPRENEUR
   • Exemption from income tax (IR) during the first 5 years, and then a reduction of 80% of tax on gross earned income during the following 20 years;
   • Exemption from corporation tax (IS) for the first 5 years, and then a rate of 8.75% for the following 20 years;
   • Exemption from professional tax for the first 15 years;
   • Exemption from urban tax for the first 15 years;
   • Exemption from participation in national solidarity;
   • Exemption from tax on income from corporate rights, dividends and similar income for non-residents and a reduction in tax to 7.5% for residents;
   • Exemption from import duties, and simplified customs procedures;
   • Unlimited exemption from value added tax in respect of products delivered and services supplied to the free export zones and from the subjected territory;
   • Exemption from registration fees and stamp duty on instruments of incorporation or increases in the capital of the company, as well as on land acquisitions;
   • The establishment of a one-stop service to the investor.