Offshoring is the process of moving certain activities or services of a company to a foreign destination, usually in a country with low labor costs. Morocco is a country that has attracted many companies due to its relatively low labor costs and geographic proximity to Europe.
Offshoring services in Morocco can include supply chain management, project management, software development, data processing, customer relationship management, and more. Morocco also has a network of shared services centers that offer superior services to businesses.
There are several advantages to choosing Morocco for service offshoring. First, labor costs are generally lower than in Europe and the U.S., which can represent a significant savings for companies. Second, Morocco has a skilled and bilingual workforce, which makes it easier to communicate with foreign companies. Finally, Morocco is well connected to other countries through its trade links and geographic proximity to Europe, which facilitates trade with other parts of the world.
It is important to note that service offshoring can be complex and requires careful planning and management to ensure success. It is recommended that you work with a company that specializes in Offshoring morocco to ensure that the process runs smoothly and efficiently.
Tax incentives for offshoring companies
Morocco has put in place a number of Morocco tax incentives to encourage companies to invest in the country and develop their activities, including the offshoring of services. Here are some of the main tax advantages offered in Morocco:
- Lower tax rate: The corporate tax rate in Morocco is 30%, which is lower than the average tax rate in most Western countries. Offshring companies benefit from rates capped to 20%
- Free zones: Morocco has many free zones, which are special economic zones where companies can benefit from advantageous tax regimes, including exemptions from income and payroll taxes.
- Duty exemptions: Companies that set up in Morocco’s free zones can benefit from duty exemptions on goods and raw materials imported for their production.
- Tax credit: Morocco offers a tax credit to companies that invest in research and development, which can represent a significant savings for companies.
- Value-added tax (VAT) exemption: Companies that locate in Morocco’s free trade zones can benefit from a VAT exemption on the goods and services they purchase for their business.
It is important to note that tax benefits vary depending on the zone in which a company sets up and its activity, and it is advisable to check with the relevant authorities for accurate and up-to-date information on the tax benefits offered.