Finance

A $5,000 flat tax costs a Moroccan company €107,130 in France

27 September 2026·2 min read

SARL Sauret Consultants Holding Offshore received French dividends over three years. France withheld a total of €107,130. The tax treaty does not allow exemption because the dividends were not taxable in Morocco, as ruled by the Paris Court of Appeal.

A Moroccan company faced with French withholding tax on dividends

Sauret Consultants Holding Offshore SARL received dividends paid by a French company for three years. France withheld €38,513 in 2019, €43,754 in 2020 and €24,863 in 2021, making a total of €107,130 in withholding tax.

The dividends received from France could not be considered taxable in Morocco within the meaning of the tax treaty. The condition conferring entitlement to exemption from French withholding tax was therefore not met.

Tax form 5000-FR produced by the company only attested to its Moroccan tax residence. The judges considered that this document did not demonstrate that the dividends in question actually formed part of the base of a Moroccan tax covered by the treaty.

In its judgment of 30 April 2026, the Paris Administrative Court of Appeal upheld the validity of the withholding taxes applied by the French tax authorities. The decision validates the reassessment for the three financial years concerned.

Share this article

5 October 2026

Potato: kilo at 8 dirhams in Casablanca

In Casablanca, potato prices have risen to 8 dirhams per kilogram, up from 3 dirhams last year, alarming consumers and traders. The supply comes from cold storage, and the increase affects all vegetables, straining household purchasing power for families

4 October 2026

Morocco-USA: imports surpass exports

In the first seven months of 2026, Morocco's trade deficit with the United States widens to $2.83 billion. Moroccan imports ($4.07B) surge 25.2%, far outpacing exports ($1.24B, +14.2%). In July alone, the monthly gap exceeds $500 million.

29 September 2026

Bank liquidity: rising need, BAM boosts injections

Bank Al-Maghrib raises weekly injections to 150 bn DH in August (144.1 bn in July). Seven‑day advances (54.6 bn), 1‑3‑month repos (48.1 bn) and guaranteed loans for SMEs (47.3 bn) meet liquidity needs. The overnight interbank rate stays at 2.25 % on the interbank market.

Related practical guides

Retirement in Morocco for MREs: CNSS, Foreign Pension, Medical Coverage7 min Franco-Moroccan Succession: How to Avoid Double Taxation9 min Switzerland-Morocco Double Taxation: How to Avoid Paying Twice in 202614 min

Are you an MRE?

Join the platform and reach verified professionals in Morocco. Free.

Create my free account

Have a project in Morocco?

Find a LesMRE-verified expert to guide you through your steps.

Find an expert →