Tax Breaks and Exemptions for Artists
Fouzi Lekjaa, the Minister Delegate to the Minister of Economy and Finance in charge of the Budget, has unveiled a robust package of tax incentives and customs facilities designed to support artists and the cultural sector in Morocco. He emphasized that the existing tax system includes specific provisions to promote artistic activities, along with measures aimed at expanding social protection and easing the importation of artistic equipment and works. These insights came in response to a written inquiry from parliamentary advisors Mustafa Dahmani and Mohamed Ben Fqih, members of the National Rally of Independents group in the House of Counselors, regarding the fiscal encouragement mechanisms directed at the arts and entertainment sector. According to the Minister, artists benefit from various special tax measures beyond the general privileges established for employees and professionals. Specifically, under income tax regulations, artists are exempt from tax on earnings derived from the use or assignment of copyright for literary, artistic, or scientific works, in addition to exemptions on literary and artistic awards not exceeding 100,000 dirhams annually. Furthermore, theatrical, musical, cinematic artists, ballet dancers, and orchestra leaders enjoy a 35 percent tax deduction on total wages and similar non-exempt income, capped at 35,000 dirhams. For those artists working intermittently, known as 'kashiyat', whether individually or in groups, a flat rate deduction of 50 percent is applicable on their total earnings. Additionally, self-employed artists benefit from a waiver of the minimum tax for the first three accounting years following the commencement of their activities, under the conditions specified in the general tax code.
Integration of Artists into Social Protection
On the social front, Lekjaa confirmed that artists are entitled to the compulsory basic health insurance system based on their professional status, whether they are employees, temporary workers, or independent practitioners in the private sector. The General Directorate of Taxes is responsible for providing the National Social Security Fund with the necessary information to register professionals, including artists. This directorate also manages the collection of contributions and penalties due to delays in the mandatory health insurance payments for the eligible groups. However, the Minister stressed that expanding social protection benefits for artists not covered by the unified professional contribution system does not fall under the purview of the General Directorate of Taxes. Regarding customs measures, Lekjaa noted that the Customs and Indirect Taxes Administration has mechanisms in place to facilitate the movement of goods and equipment related to artistic activities while simultaneously working to protect national heritage and combat the illicit trade of cultural properties. In this context, festival and event organizers can benefit from a temporary admission system for imported equipment and tools. Artists and organizing companies can utilize the ATA Carnet, which allows for the entry of equipment into Morocco without the obligation to pay the due customs duties and taxes at importation, simplifying the re-export procedures once the event concludes. In situations where an ATA Carnet is not presented, a bank guarantee can be replaced by a commitment from the ministerial sectors organizing or sponsoring the events to ensure the re-export of the equipment.
As reported by kech24.com.
