THE MAXIMUM RATE OF DEDUCTIBLE INTEREST IN MOROCCO 2021

THE MAXIMUM RATE OF DEDUCTIBLE INTEREST IN MOROCCO 2021

Pursuant to Article 1 of Order No. 423-21 published in Official Bulletin in Arabic language No. 6970 of March 18, 2021, the maximum rate of deductible interest paid to partners, on account of the sums advanced by them to the company for operating purposes, is set at 1.63% for the year 2021.

Interest recorded or invoiced relating to sums advanced by partners to the company for operating purposes is deductible from taxable income provided that the share capital is fully paid up.

However, the total amount of sums bearing deductible interest may not exceed the amount of the share capital and the rate of deductible interest may not exceed a rate fixed annually, by order of the Minister in charge of finance, according to the average interest rate. six (6) month Treasury bills of the previous year.

he evolution of the deductible interest rate over the last four years is as follows:

Financial year 2022: The maximum rate of interest deductible from current accounts in credit with partners for the financial year 2022 has been set at 1.42%.

Financial year 2021: The maximum rate of interest deductible from current accounts in credit of partners for the financial year 2021 has been set at 1.63%.

Financial year 2020: The maximum rate of interest deductible from current accounts in credit of partners for the financial year 2020 has been set at 2.23%.

  Financial year 2019: The maximum rate of deductible interest on current accounts in credit of partners for the financial year 2019 was set at 2.19%.