Clause 160.- Terms of settlement
Settlements, for the benefit of foreign and Moroccan investors that live abroad, in regard to their income, liquidation proceeds and funds that are originating from the testamentary disposition or succession in Morocco, must be made in accordance with the provisions of the clause 7 of this Instruction when the investment benefits from the convertibility regime.
If the conceded or settled investment does not benefit from the convertibility regime, after proof of payment of taxes and all other charges due in respect to the transaction in question, the product in dirhams must be:
- Available to the seller if he resides in Morocco;
- Paid into a convertible term account that should comply to the conditions defined in the Clause 162 of this Instruction.
Nevertheless, settlements in regard to foreign investment disposal in Morocco may be made directly abroad when the disposals are made by a foreign nationality individual on behalf of a foreign nationality individual or on behalf of a Moroccan living abroad.
If the settlement is made abroad, the buyer will inherit the seller's position as to the convertibility status of the investment in question.
If the investment in question is settled directly abroad by a non-resident foreigner, the fees, taxes and duties related to the transaction etc.… must be settled in accordance with the provisions of clause number 8 of this Instruction.
Banks are empowered to settle foreign investment income in Morocco without any amount or time limitation, after payment of the implemented taxes in Morocco, for the benefit of foreigners, natural or legal non-residents persons whatever the financing mode of their investments.
Clause 161.- Documents delivery
a. Before the implementation of income settlements generated by foreign investments in Morocco as defined by the clause 159 of this Instruction, banks must receive the following documents :
For dividends and profit shares:
- Statements and income/expense accounts (IEA) related to the fiscal year in which the payment is requested, covered to by the Tax Administration or supported by the receipt for the tax returns through an electronic way;
- The minutes of proceedings of the Ordinary General Meetings or the decisions of the sole partner, at a certain date acknowledging the distribution of the dividends while sharing the amount of the distributed dividends;
- The list of foreign or Moroccan partners living abroad, indicating their identity, nationality, address and the number of securities held by each of them.
For exploitation profits of foreign companies branches:
- Statements and income/expense accounts (IEA) related to the fiscal year in which the payment is requested, covered to by the Tax Administration
- A statement of extra accounting adjustments made to obtain the tax result
For rental incomes :
- The ownership certificate of the property object of the rental;
- The rental contract with a certain date covering the period of rentals to be transferred and showing the amount of rentals;
- Proof of payment of taxes of the year n-1.
For related loan maturities and advances related to the current account of the associates (primary and interests):
- Documents justifying the settlement of the amount of the loan or justifying the current account advances of partners in accordance with the clause 156 of this Instruction;
- The loan contract or the agreement on the advances in the current account of associates containing the repayment schedule while displaying the interest to be paid when the loan or the current account advance is remunerated.
For the attendance fees
- The list of foreigners or Moroccan administrators established with their identity, address, gross and net amount granted to each one of them;
- The minutes of the proceedings defining the total amount of the attendance fees for the fiscal year.
b- Before the implementation of settlements that fall under the liquidation proceeds of foreign investments in Morocco as defined by the clause 159 of this Instruction, banks must receive, in addition to evidence supporting the tax settlement regarding the liquidation transactions, the following documents:
- Documents justifying the settlements of the foreign investment transaction provided for in the clause 13 of this Instruction;
- Documents justifying the sale or liquidation operation of the following investments:
- For transferable securities: copies of the act of transfer regarding the transferred securities having the transfer price and a defined date;
- For real property: copy of the act of sale;
- For the liquidation proceeds:
- Minutes of the Extraordinary General Meeting or decisions of the sole partner having a certain date, displaying the net proceeds to be distributed and signaling the termination of the liquidation or copies of the judicial decision pronouncing the termination of the liquidation;
- Statement the liquidation duly endorsed by the tax administration;
- Report of the liquidator showing the net proceeds to be distributed;
- Proof of residence abroad;
- Proof of the intake and repayments in foreign currency of the loans provided for in clauses 184 and 185;
The branch registered with the Office des changes must also provide a copy of the tax clearance and the certificate of the CNSS justifying its regular situation regarding the entity in question.
c- Before the implementation of settlements in favor of the non-residents beneficiaries under the testamentary disposition or succession, banks must receive the following documents:
- Notarial deed of the testamentary disposition or succession duly established;
- Copies of proof of foreign currency settlements of assets subject to the succession provided for in the clause 13 of this Instruction;
- Proof of residence abroad.