Government interest share: 25 % maximum.

Corporate tax: total exemption from corporate income tax for a consecutive ten-year period, starting from the date of regular production of each exploitation concession.

Surtax: None.

All equipment, materials, products and services necessary for reconnaissance, exploration and exploitation operations are customs duties and VAT free.

Holders of reconnaissance licenses, exploration permits and exploitation concessions, their contractors and sub-contractors benefit from an exemption from all duties and taxes on the importation of equipment, materials and consumable products intended for use in the reconnaissance, the exploration and the exploitation of hydrocarbons and in activities ancillary thereto.

The holders of an exploitation concession are exempted from business activity tax, urban tax other than municipal tax and tax on non-developed urban areas.

The profits and dividends of the holders of an exploitation concession and shareholders of concessionary companies are exempted from the tax on income from shares, capital rights and similar revenues and are freely transferable outside Morocco without limitation for foreign entities.

The transfer of the net proceeds of assets sale is guaranteed if the investment is made by a foreigner. This guarantee relates to:

  1. oThe capital contribution made by way of transfer to BANK ALMAGHREB of convertible foreign currencies.
  2. oThe net capital gain on the assets sale.

Royalty : the rates are as follows :

  • Onshore and offshore less than 200 meters water depth: Oil 10 % Gas 5 %. The first 300,000 Tons of oil and 300 millions m3 of gas produced from each exploitation concession are exempted.
  • Offshore beyond 200 meters water depth: Oil 7 % Gas 3.5 %. The first 500,000 Tons of oil and 500 millions m3 of gas produced from each exploitation concession are exempted.

Surface rentals :

  • Exploration permit: For each exploration permit, a fee of 1000 Dirhams is payable at time of filing a request or applying for an extension period.

Petroleum Law ...