New Tax Regulations on Luxury Vehicles in Morocco
Beginning in January 2027, Morocco is set to introduce significant changes to its taxation system concerning luxury vehicles, as outlined in the draft finance law for the year 2027. This new legislative measure targets owners of high-value cars, specifically those valued above $40,800, excluding Value Added Tax (VAT). The proposed adjustments indicate an increase in the tax rate on luxury vehicles, raising it from 5% to 6% for cars valued between $40,800 and $61,200 (400,000 to 600,000 MAD). Furthermore, the tax will increase from 10% to 12% for vehicles valued between $61,200 and $81,600 (600,000 to 800,000 MAD) and from 15% to 18% for those priced between $81,600 and $102,000 (800,000 to 1,000,000 MAD). For vehicles exceeding $102,000 (1,000,000 MAD), the tax will escalate from 20% to 24%.
Exemptions for 2030 World Cup Vehicles
In conjunction with these tax modifications, the draft finance law also incorporates provisions for tax exemptions related to the 2030 FIFA World Cup, which Morocco is set to co-host. Notably, vehicles owned by FIFA and its affiliated organizations will be exempt from the annual special vehicle tax. This exemption will also extend to the Royal Moroccan Football Federation and other participating federations, including those under the South American Football Confederation. The proposed exemptions are expected to be effective from January 2027 until December 31, 2032, benefiting various stakeholders involved in the hosting of the prestigious tournament.
As reported by alarabiya.net.
