Morocco : Tax breaks for military industry development

Morocco's ambition is to become a hub for military industries on the African continent. The government's adoption on Thursday, November 14, in Rabat, of draft decree no. 2.24.966 supplementing decree no. 2.17.743 of June 19, 2018, setting out the activities carried out by industrial companies benefiting from the temporary exemption from corporation tax (IS) provided for in article 6 (II-B-4°) of the General Tax Code, was in line with this goal, the Minister of Relations with Parliament told a press briefing.

This new decree adds the manufacture of defense and security materials and equipment, weapons, and ammunition to the list of activities carried out by industrial companies benefiting from this tax advantage, said Mustapha Baitas.

Indeed, arms industries were not on the list established in the decree of June 19, 2018. For the record, in July 2021, Morocco had put in place the legal framework for the emergence of a local arms industry, through the adoption of law n°10-20 relating to defense and security materials and equipment, arms, and ammunition.