Taxation of streaming giants and their future in Morocco at the center of a conference in Rabato

The streaming giant’s global taxation and its future in Morocco were at the center of a conference organized by the CINEATLAS group in Rabat on Wednesday.

Speaking on the occasion, Pierre-François Burnett, Managing Director (CEO) of Cine Atlas Holding, first addressed the “major” impact of the worldwide wave of taxation of the “Silicon Six” (GAFAM + Netflix), presenting a List of Moroccan law violations by “Netflix” and “Amazon Prime” before committing.

According to him, these two “mastodons” of streaming violate a number of legal provisions including Articles 5, 6 and 8 of Law No. 20-99 relating to the activity of distribution of cinematographic films.

“They exempt themselves from the compulsory license issued by the Higher Authority for Audiovisual Communication (HACA)”, “violates and violates the rules relating to the Exchange Office, on the one hand, Article 61 from the Director of Moroccan Cinematographic Authority” Requires “the Center for the Taxation of Foreign Films (CCM) and, on the other hand, Article 301 which requires that the distributor contract operating on the territory of Morocco to be covered by the CCM”, adds T-He.

Citing “Television Business International”, Mr. Burnett said that Morocco today ranks third.th Netflix subscribers in the MENA zone (Middle East and North Africa) account for 6.9% of subscriptions and will have 770,000 subscribers in 2025.

He then revealed that the company that collects Netflix’s revenue in Morocco and several other countries is based in the Netherlands. And to continue that if Netflix collected its revenue not through its Dutch subsidiary but through its Moroccan subsidiary, the tax revenue would be 1.2 billion dirhams, or “Television Business International” according to “Newswire” in 2025. According to ” 550 million will exceed DH.

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Referring to recent measures taken abroad by some countries, Mr Burnett in particular relied on the example of the United Kingdom, whose officials are required to declare 100% of its income to Netflix from 2021, as well as France which was imposed on California. The total declaration of its income made on French soil since the current year.

On the tax side, Mr Burnett said that “if Netflix regularizes its position in Morocco without changing its local organisation, it will have to pay between 286 and 620 million DH in corporate tax (IS)”.

“Obviously, Netflix, as we can currently see overseas, will choose to create a fee in Morocco to reduce this amount of corporate tax by investing in local production,” he said. , noting that “once the sector is fully regulated and taxed, it is between 1.3 and 3.1 billion DH that can be invested locally”. The launch of “Play Atlas”, “Platform of Moroccan, Hollywood and Indian Successes” and “Palliance for Lack of Cinemas in Morocco” were also on the menu of the convention.

MO

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About the Author: Rusty Kemp

Tv ninja. Lifelong analyst. Award-winning music evangelist. Professional beer buff. Incurable zombie specialist.

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