DT13540 - DT: Morocco: Underlying Tax

(1) DOCUMENTS NEEDED TO SUPPORT THE UNDERLYING TAX CLAIM

The accounts showing the profits used to pay the dividend and evidence of the tax payable on the profits used.

(2) LEGAL RESERVE

Relevant profits are reduced by transfers of 5% of annual profit until the reserve reaches 10% of share capital.

(3) SPARED TAX

Credit for spared tax is available in accordance with Article 22 (2) of the UK/Morocco Double Taxation Convention (SI 1991 No 2881) - see DT13571. The calculation of tax spared prepared by the Moroccan company's accountants should be provided together with the certificate granting tax sparing status.