Morocco’s recent tax amnesty program has concluded with impressive results, with declarations totaling MAD 100 billion ($10 billion), far surpassing initial expectations. The initiative, introduced under the 2024 Finance Law, has been hailed as a significant step in the country’s efforts to bring previously undeclared wealth into the formal economy.
According to the final report, MAD 60 billion ($6 billion) was declared through cash deposits within Morocco’s banking sector, while the remaining MAD 40 billion ($4 billion) was attributed to real estate purchases and contributions to partners’ current accounts. This broad range of asset categories underscores the scope of the amnesty, designed to attract both liquid assets and investments.
The program, which ended on December 31, 2024, imposed a 5% contribution on the declared amounts, expected to generate approximately MAD 5 billion ($500 million) in tax revenue for the 2025 national budget. These collections are set to be transferred to the treasury within a month of declaration, ensuring swift integration into the state’s finances.
Initial targets for the amnesty had set a goal of MAD 60 billion ($6 billion) in declarations, which was easily surpassed by the cash deposits alone. The total amount declared was 20 times higher than the results from the 2020 tax amnesty, highlighting the program’s overwhelming success.
This significant increase in participation reflects Morocco’s high cash circulation, which stood at approximately MAD 426 billion ($42.6 billion) by late October 2024, according to Bank Al-Maghrib. The declared amount now represents nearly a quarter of the total cash in circulation in the country, signaling a shift towards greater formalization of the economy.
The amnesty targeted individuals with undeclared income or assets as of January 1, 2024, and covered various asset types, including bank deposits, real estate not used for professional purposes, and loans or advances to third parties or partner current accounts. Participants were given a 5% contribution rate as an incentive to come forward, avoiding the 37% tax rate that would have been imposed on undeclared funds starting January 1, 2025.
On the final day of the program, tax offices and bank branches were overwhelmed by individuals rushing to regularize their financial situations. The success of the program marks a significant victory for Morocco’s ongoing efforts to tackle tax evasion and bolster the country’s financial transparency.
This tax amnesty is also aligned with Morocco’s broader strategy to strengthen its anti-money laundering and counter-terrorism financing efforts. The initiative comes in the wake of Morocco’s recent removal from the Financial Action Task Force (FATF) grey list, signaling the country’s growing commitment to international financial standards and the fight against financial crime.