Tangier – The provisions of the tax treaty between Morocco and Spain were the focus of a conference-debate held on Thursday in Tangier, organized by the General Confederation of Moroccan Enterprises (CGEM) of Tangier-Tetouan-Al Hoceima and the Moroccan consortium of the International Fiscal Association (IFA Morocco).
Organized in partnership with the Morocco-Spain Economic Council (CEMAES) and the Official Spanish Chamber of Commerce in Morocco (Tangier, Nador, and Kenitra), this conference shed light on certain provisions of the bilateral agreement, particularly those relating to the tax treatment of royalties and the concept of permanent establishment.
Dubbed “The Morocco-Spain Tax Treaty: reading and interpreting the provisions relating to royalties and permanent establishments,” this event provided an opportunity for speakers to highlight the practical implications of these provisions for Moroccan and Spanish companies.
On this occasion, the participants recalled that the tax treaty between Morocco and Spain, signed in Madrid on July 10, 1978, and which came into force on May 16, 1985, is largely based on the former “OECD Models,” emphasizing that its main objective is to avoid double taxation and prevent tax evasion in relation to income and wealth taxes.
The convention defines the criteria for tax residence and sets out the rules for taxation applicable to different types of income (dividends, interest, royalties, corporate profits, and real estate income), they explained, noting that it also establishes the conditions for recognizing a permanent establishment.
In a statement to MAP, the regional president of CGEM Tangier-Tetouan-Al Hoceima, Omar Kadaoui, pointed out that the region is home to a significant number of Spanish companies, explaining that this meeting aims to bring them closer to the provisions of the bilateral tax agreement in order to avoid any risk of double taxation.
The region has a high concentration of foreign investment, he continued, noting that the CGEM in the northern region is organizing similar meetings to provide all the necessary clarifications, with the aim of further facilitating the establishment of investors in Morocco.
