Lower House Adopts 2023 Appropriation Bill with Sweeping Majority

The Lower House approved, on Thursday, in its second reading, the 2023 Appropriation Bill.
The plenary session was chaired by Vice Speaker of the House, Mohamed Sabbari. The Bill was approved with a sweeping majority of 102 representatives, whereas 27 others opposed it, with no abstinence.
The amendments concern the tax law, notably the corporation tax of 35% for companies whose net profit is higher than or equal to 100 million MAD, with the exception of service companies that have acquired the CFC status or benefiting from the specified regime, and companies operating in industrial acceleration zones.
Another amendment is a 36-month exemption from income tax for new employees with an indefinite contract, aged under 35 by Dec. 31, 2026, as well as an exemption of donations paid directly to the beneficiaries, without the employer’s interference. It also provided for reducing income tax for lawyers from 300 to 100 MAD.
A 15% reduction in the tax rate of moral persons was approved. The deduction is limited to the incomes paid by the State and public institutions. The amendment also includes a withholding tax regarding the wages of non-salaried teachers and doctors who are not subject to professional tax, as well as a reduction regarding pension savings contracts from 30 to 15 percent.