Payment terms

New Law on Payment Deadlines in Morocco: Simplification and Compliance for Companies

The Directorate General of Taxes (DGI) recently unveiled the new framework of the payment terms declaration form, providing companies with a structured way to comply with tax laws while simplifying the declaration process.

The Structured Fabric for Compliance

The framework of model form No ADC500B-23I comprises various sections designed to collect the relevant information. This information includes the invoice number, the nature of the goods or services provided, the expected date of payment, the amount in dispute submitted to the courts, and more. This structure organizes data in a clear and consistent way, simplifying the task of companies.

Rigorous Management to Meet Requirements

Abdelbasset Mohandis, Chartered Accountant and External Auditor, points out that the purchasing, logistics, accounting and finance departments will have to do a lot of work every quarter. Rigorous management of supplier purchases and payments is essential to alleviate this workload.

The first declaration on payment terms is scheduled for the end of October 2023 for companies whose turnover exceeds 50 million dirhams.

A Key Tool for Financial Management

The declaration of payment terms plays an essential role for companies seeking to effectively manage their cash flow and avoid financial risks. In accordance with Law No. 15-95 forming the Commercial Code, it allows companies to report unpaid invoices within the deadlines, as well as financial fines incurred in the event of non-compliance with deadlines.

By making it easier to track unpaid invoices and penalties, this statement helps companies better anticipate their cash flow and take steps to avoid future payment delays. It also promotes compliance with legislation on payment deadlines, thus avoiding financial penalties.

In addition, this declaration strengthens the relationship between companies and their suppliers by showing their commitment to responsible payment practices, thus contributing to healthy and sustainable business relationships.

The new framework of the form simplifies compliance with the legislation on payment terms, thus contributing to a stronger financial management for Moroccan companies.

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