Morocco’s finance and economy ministry has announced the exemption of new industrial companies from corporate tax for five years to stimulate investment, reporting Reuters.
The development seeks to boost investment in 24 sectors including the automotive, aeronautical, textile, manufacturing, food and pharmaceutical industries.
Morocco’s foreign direct investment (FDI) dropped to 17.2 per cent in the first five months of 2018 compared to the same period last year, hence the tax break has been offered as Morocco forecasts a further drop in foreign direct investment in 2019.
The kingdom has attracted investment from a number of big auto and aerospace investors in recent years including Renault, Peugeot, Bombardier as well as Boeing and Safran.
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