Details of the DTT signed between Mauritius and Morocco on the 25th November 2015 have now become available. The treaty is based on the UN model convention.
Withholding rates are as follows:
- Dividends 10% unless the holding company holds at least 25% of the equity in which case a reduced rate of 8% applies;
- 10% on interest;
- 10% on royalties;
- 8% withholding tax on branch profits.
The treaty will come into operation
The treaty does provide relief from the domestic withholding rates which are as follows:
- Dividends: 15%
- Interest: 10%
- Royalties: 10%
Morocco has already signed some 50 treaties so the one with Mauritius is useful but not that significant. There are also a number of treaties that reduce the dividend withholding tax rate to 5 to 6% for example Malta, Ireland and the UAE.
We anticipate that the treaty will be used primarily by companies that have already decided on a Mauritius base as opposed to Mauritius becoming the chosen point of entry into Morocco.
Should you require further information then please contact:
firstname.lastname@example.org/ocs | www.osiristrust.com
Telephone: +230 650 4030