The Conventional Scheme http://www.casainvest.ma/portals/0/R%C3%A9gime%20conventionnel.doc
The agreements signed with the Government can take different forms depending on whether the projected investment answers, at least, the provisions of one of the texts concerning the treaty regime. They are as follows: a
- The exemption of customs duties and VAT on imports (Article 7-1 of the Finance Law 1998-1999, as amended by Finance Acts 25-00 and 55-00):
Companies committed to making an investment with an amount equal to or greater than 200 million dirhams can enjoy –within the Convention framework to be concluded with the Government, exemption from import rights licenses, from value added taxes applicable to capital goods, materials and tools needed to carry out their projects imported directly by these companies or on their behalf.
This exemption is also given to the parties… Spare parts and accessories imported at the same time as capital goods, machinery and equipment intended to be used by these companies.
The investment must be made within 36 months following the date of the signing of an agreement with the government. However, additional time may be granted in cases of force majeure or unforeseeable circumstances.
The goods benefiting from this exemption may not, during a period of 5 years from the date of import, be subject to assignment, transfer or to be used for means other than those for which they were imported or acquired, unless specifically authorized. As for capital equipment, machinery and equipment acquired locally, the period is 3 years from the date of acquisition. b
- State participation in certain expenses related to investment (Article 17 of the Finance Law No. 18-
95 forming the Charter of investment as well as Decree No. 2-00-895 taken to its application):
The adoption of Decree No. 2-00-895 made for the implementation of Article 17 of the Charter of the investment on the state participation in the costs of land acquisition, infrastructure and external of training. The purpose of this decree is to define the modalities of state participation in the implementation of projects initiated by companies whose investment program meets one or more of the following criteria:
• The investment program is an amount equal to or greater than 200 million Dirhams;
• Creating a stable employment figure equal to or greater than 250 employees,
• Establishing itself in one of the provinces and prefectures aimed by Decree No. 2-98-520 of
Rabii 5, 1419 (June 30, 1998). The regions are: Al Hoceïma, Berkane, Boujdour, Chefchaoun,
Essamara, Guelmim, Jerada, Laayoune, Larache, Nador, Oued Eddahab, Oujda Angad, Tangier
Asilah, Fahs Bni Makada, Tantan, Taounate, Taourirt, Tata, Taza and Tetouan;
• Ensure technology transfer;
• Contribute to the protection of the environment.
These companies may benefit under a contract signed with the State from the following:
• A state participation in expenses related to the acquisition of land required to carry out the investment program of up to 20% of the cost of land;
• A state participation in external infrastructure expenses necessary to implement the investment program within the limit of 5% of the aggregate amount of the investment program;
• A state participation at the expense of vocational training provided by the investment program set at 20% of the cost of such training;
The advantages provided by this scheme can be earned without the full participation of the State exceeds 5% of the aggregate amount of the investment program.

However, where the investment project is planned in a suburban or rural, the state participation may reach 10% of total investment. c
- Benefits granted to property developers (Article 19 of the Finance Act 1999-2000 as amended and supplemented in accordance with the provisions of Article 16 bis of the Finance Law 2001 on the construction of social housing):
1 - Property developers and contractors, legal or natural persons under the real Net Operating
Income regime, are exempt for all their acts, activities and income related to the realization of social housing:
• Registration fees and stamp;
• Land R
ees;
• Patent and licenses taxes;
• VAT;
• Corporate tax;
• Income tax;
• Property tax;
• and all taxes, fees and contributions collected on behalf of local authorities and their groupings.
Eligible for these exemptions are property developers and contractors who operate within the framework of an agreement with the State, in accordance with the book of specifications, to implement programs to construct 2 500 social housings, spread over a maximum period of 5 years starting from the date of issuance of a building authorization.
2 - Property developers who perform in the framework of an agreement with the State -for a maximum period of 3 years starting from the date of issuance of a building permit, construction operations of residences or university campuses, including accommodation capacities equal to or higher to 1 000 beds:
• Registration fees and stamp;
• Land R
ees;
• Patent and licenses taxes;
• VAT;
• Corporate tax;
• Income tax;
• Property tax;
• and all taxes, fees and contributions collected on behalf of local authorities and their groupings.
• A reduction of 50% of the Income or Corporate tax fom the rental of buildings made with effect from 01/01/2001 and for a period of 5 years from the date of occupation license issuance.
To be eligible for these exemptions, property developers must keep separate accounts for each program and submit their books to the declaration (Corporate and Income taxes):
1.
A copy of the agreement and the book of specifications with regard to the 1st year of activity;
2. An inventory and state of the volume of the housing units carried out under each program and the related amount of turnover d
- The Hassan II Fund for economic and social development

In a context of permanent global changes, Morocco mobilizes all its assets to meet the challenge of competitiveness and promote both domestic and foreign private investment. The country entered, through sustained efforts, in a process of improving its investment climate: consolidation of the economic liberalization policy, opening up the private sector within an international partnership framework, comprehensive reform of the promotion of national investment and support to entrepreneurs, modernization the regulatory and incentive framework...
These reforms, combined with strengths such as the stability of its institutional framework, its geographical location and its proximity to Europe, an efficient logistics system, a customs facilitation thrust, can only consolidate its attractiveness and make it an archetypal investment-friendly country.
1. Consistency of support:
The support takes the form of a direct financial contribution that can take, depending on the choice of the promoter, one of two forms:
* Contribution up to:
• 50% of the cost of land acquisition (on the basis of a maximum cost of 250 DH / m²) and
• 30% of the cost of buildings (on the basis of a maximum cost of 1 500 DH / m²)
* Contribution of 100% for the acquisition of proprety (on the basis of a maximum cost of 250
DH / m²). This contribution can be combined with the benefits granted under the current system of investment incentives
2 – Beneficiary sectors:
New investment programs, establishment or extension, in the areas described below are eligible for support by Hassan II Fund:
Textiles and all their subsidiaries
This sector has emerged as the first industrial private sector after the independence of
Morocco in 1960’s. Since 1987, textile and clothing investments have exploded as a consequence of restructuring / relocation trends of European industries in the sector.
Today, the textile and clothing sector remains a pillar of the Moroccan industry.
In 2003, the sector accounted for 44% of all industrial jobs and its output reached 23 billion Dirhams of which more than 2/3 were destined to international markets.
The sector has several advantages including: its export dynamism, the availability of a skilled and low-cost workforce, a very entrenched know-how, a diversified industry, etc...
Leather Sector
The leather processing industry represents one of the major manufacturing sectors traditionally anchored in Morocco. The leather industry generated, in 2001, a value added of 125 million Dirhams and exported nearly 318 million DH.
The manufacture of footwear is without doubt the most important branch of the whole leather industry. Its production reaches 2.2 billion Dirhams.
The leather processing industry has several strong points including: local know-how reputation, the availability of a skilled workforce, a rooted leather tradition, availability of raw materials, a very diverse industry, strong development potential, etc...

Auto parts
This industry presents an interesting potential for development in Morocco, including the consolidation of the multiple efforts of integrating diversification within the framework of low-cost vehicles projects. Investments in the sector have grown steadily through the installation of new global auto parts investors.
Among the strengths of the sector we cite: an open and extensible market through free trade agreements signed with various countries and regions, an automobile culture, a diversified and export-oriented outsourcing and a skilled and flexible workforce, etc...
Electronics Industry
This sector is a keystone of Moroccan industry which overlaps with different economic sectors. In fact, it plays an important role in developing the industrial network in introducing the necessary know-how of new technologies, creating employment and generating high added value.
The electronics sector, including semiconductors, witnesses a significant development indicating the degree of competitiveness of Morocco in this sector. Also, the sector has a high potential for growth in Morocco due to the rapid development of information technology over the world and the resulting increase in demand for electronic components.
The sector great potential also lies in the existence of diversified industries upstream and the presence of international benchmarks, the availability of a highly qualified workforce and a resolute policy toward the world market (nearly 80% of the output is destined for export).
Aerospace Industry
Morocco is considered as the home of subcontracting aeronautics. It has become a major destination of high technology and has a sound macro-economic framework that can constitute an effective lever and catalyst for achieving sustainable growth.
The country presents a technical know-how of international level.
The aeronautics industry in Morocco is currently among the sectors potential for development. The local aeronautics industrial network is able to perform both civilian and military maintenance respecting the required and strict quality norms.
All Moroccan companies involved in the aeronautics outsourcing have an exportoriented vocation.
Industrial activities related to the preservation of the environment
The preservation of the environment is more than ever a key vehicle of ecologically sustainable industrial development. There is a need for developing downstream industrial activities principally contributing to the preservation of the environment through treatment, recycling and recovery of waste.
3 – Dossier presentation:
The investment project’s case file must be deposited with the Ministry of Industry. It should include the statutes of the company, references to the investor, a precise description of the investment project, its implementation schedule, cost, employment generated, its mode of financing and the project’s location.

4 - Procedure and lead time:
An examination of the case file is handled by a joint commission composed of representatives of the Ministry of Industry, Ministry of Finance and the Hassan II Fund for Economic and Social
Development. A prompt response on the basis of the complete file, is notified to the investor within a period not exceeding thirty (30) days.
The payment of the property contribution by the State is performed within a maximum of sixty
(60) days after the submission by the investor of
regulation with the owner.
For buildings, the contribution is paid within a period not exceeding sixty (60) days after completion of construction and presentation by the investor of evidence of the actual cost of construction work.