Morocco has shaken up its tax landscape with new transfer pricing (TP) regulations, requiring companies with overseas ties to provide detailed TP documentation to the tax authorities.

What's more, the 2021 Moroccan Finance Bill has cranked up the stakes by introducing penalties for non-compliance, primarily targeting larger companies.

Not stopping there, the 2020 Finance Bill also threw in Country-by-Country Reporting (CbCR) obligations, adding another layer of complexity for companies operating in Morocco. This means companies need to report their global operations, profits, and activities in a more transparent and comprehensive manner.

In tandem with these changes, Morocco has joined the OECD's BEPS framework, ensuring its TP regulations are in line with international standards. But it's not just about compliance - Morocco also offers an intriguing Advanced Pricing Agreement (APA) program. This allows companies with international dependencies to secure agreements regarding transfer methods, providing a safety net against adjustments to intra-prices. It's like a playbook for staying on the right side of the taxman!

While navigating these new regulations might seem like a daunting task, it's an exciting time for companies operating in Morocco. With the right approach to TP and CbCR regulations, businesses can not only ensure compliance but also demonstrate their commitment to fair and transparent business practices.

Download the full Grant Thornton Africa Transfer Pricing Landscape Guide 2023/2024. This guide offers in-depth information and valuable insights into transfer pricing across various African countries, providing a comprehensive resource for understanding the evolving transfer pricing environment in each region.