Does your company pay corporate income tax (IS) or professional income tax (IR)? You might have a great investment opportunity available to you in the form of taking a stake in an innovative company and/or within the field of new technologies.

Indeed, since January 1st, 2018, you have the opportunity to finance these projects by deducting it from your payable tax, without any cost or risk involved. A great deal!

User instructions:

The company receiving the funding must:

• Be less than 5 years old at the date of the stake acquisition.
• Have an annual turnover of less than 5,000,000 Moroccan Dirhams.
• Allocate more than 30% of its expenses to applied research or product/service development.

The funding company must:

• Limit its stake to 200,000 Moroccan Dirhams per project without exceeding 30% of the IS or IR amount for the year.
• Pay the total stake in capital and cash.
• Hold the acquired shares for at least 4 years.

Advantages for all parties involved:

• The project promoter benefits from equity financing without cost and without having to provide real guarantees.
• Your company gains by acquiring a stake in a project at no cost (through tax reduction), generating future revenue and potential profit upon the sale of the acquired shares.
• The Treasury benefits as the project leads to job creation, activity, and income, which generate additional taxes.
• The community benefits as the project allows for the collection of various local taxes (TSC, T.P., signs, etc.).
• There is, therefore, an interest in taking advantage of this tax optimization that generates future revenue.

For more information, seek advice from our team of experts.