EU welcomes Morocco’s tax reforms

The EU promised to remove Morocco from the tax haven grey list after commending the reforms undertaken by the country to improve financial transparency and fight tax evasion.

An EU special committee has announced that the steps taken by Morocco to bring its tax system concerning free zones in line with European standards will lead to removing the country from the grey list in October, according to a statement of the finance ministry.

Morocco’s 2020 budget provides for a series of measures to fight tax fraud and evasion and encourage the repatriation of assets held abroad.

Morocco has also shown willingness to comply to tax standards alongside the EU.

Morocco sidestepped being listed in the EU’s tax haven black list in March after promising reforms.

Ten countries, including the UAE, are on the black list, which was approved by the EU’s finance ministers.

The 28-nation EU set up the blacklist in December 2017 after revelations of widespread tax avoidance schemes used by corporations and wealthy individuals to lower their tax bills.

Blacklisted states face reputational damages and stricter controls on transactions with the EU although no sanctions have yet been agreed by EU members.