Morocco has officially enacted the OECD Multilateral Competent Authority Agreement (MCAA) on the exchange of Country-by-Country (CbC) reports, according to a decree published in the official bulletin. The agreement, signed under the auspices of the Organisation for Economic Co-operation and Development (OECD), facilitates the automatic exchange of financial information between tax authorities of participating jurisdictions.
The same decree also approves two bilateral tax conventions with Burundi and Chad. These agreements aim to prevent double taxation and strengthen cooperation on tax matters, potentially boosting cross-border investment and trade between Morocco and these African nations.
The publication follows the ratification process in Morocco, which had signed the MCAA earlier. The exact date of the decree's issuance was not specified in the source article, but the move aligns with Morocco's ongoing efforts to align with international tax transparency standards set by the OECD and the G20.
Country-by-country reporting requires multinational enterprises (MNEs) with consolidated group revenue above a certain threshold to provide tax authorities with detailed information on their global allocation of income, taxes paid, and other indicators of economic activity. This helps tax administrations assess transfer pricing risks and other base erosion and profit shifting (BEPS) concerns.
The tax treaties with Burundi and Chad are expected to provide legal certainty for businesses operating across these borders, reducing the risk of double taxation and clarifying taxing rights on various types of income. Further details on the specific provisions of these treaties were not available in the source article.
