The tax on sports companies and social coverage, at the center of a study day

A study day was organized on Tuesday at the Mohammed VI Football Complex in Maâmora (near Sale) by the Royal Moroccan Football Federation (FRMF) on the subject of the tax on sports companies and the coverage social benefit for the national football family. In addition to the president of the FRMF, Fouzi Lekjaa, took part in this study day Hassan Boubrik, director general of the National Social Security Fund (CNSS), Khalid Zazou, interim director general of the Tax Department, and the presidents and financial managers of national football clubs. This meeting aims to inform the representatives of the clubs of the conditions allowing players to benefit from the services of the CNSS and the methods of tax collection after the entry into force of the law on sports companies. The objective of this conclave is to discuss the subject of taxes on sports companies and membership of the CNSS in order to ensure a decent life for all components of the national football family, players and technical and medical staff, Lekjaa told reporters. The Moroccan football family, in the wake of the institutional changes that mark the round ball, in particular through the creation of sports companies, is called upon to engage in the coming weeks in the implementation of legal texts relating to tax declarations, which will allow the practice of football to move from informal to formal status, governed by precise standards, he explained. Regarding the CNSS, he continued, it is “a project to which the Moroccan football family will gladly engage”, in the context of the societal project launched by HM King Mohammed VI, a reform that will “revolutionize the Moroccan social landscape”. The national football family has already initiated contacts with stakeholders on the subject of social coverage for the benefit of practitioners, technical and medical executives and others, who will be crowned in the coming weeks by a real commitment to this social reform, which will guarantee the player and his family have access to the various hospitals, but above all will guarantee them a source of income and a decent life after the end of their sports career. The creation of sports companies is only part of the institutional scaffolding of national football, especially since the FRMF aims through the various projects it has launched, in particular the transformation of clubs into companies and the generalization social security coverage, to lay the foundations for a professional culture based on the general interest and the strategic objectives set, he argued. For his part, Mr Zazou said that after the decision was taken to transform the clubs into sports companies, it was agreed to completely exempt these companies from corporate tax for a period of five years. consecutive years, starting with the first financial year of operation. This exemption includes tax on deeds and writings by which sports associations contribute part or all of their assets and liabilities to sports companies established in accordance with the provisions of Law No. 30-09. relating to physical education and sports, he said. According to him, the Finance Law 2020 stipulated that “the operation of contribution by a sports association of part or all of its assets and liabilities to a sports company, in accordance with the provisions of Law No. 30- 09, can be carried out without impact on its tax result, when the elements contributed are entered in the balance sheet of the sports company concerned at their value appearing in the last closed balance sheet of the association before this operation “. For his part, Mr Boubrik highlighted the importance of the societal project in which Morocco is committed through the generalization of social coverage which will affect all Moroccans, a project launched by HM King Mohammed VI and whose field implementation has already started. He considered, in this sense, that the study day initiated by the FRMF aims to make known to the actors of national football the modalities allowing to integrate the practice of football in the social coverage, expressing the wish to see the other disciplines get involved in this societal project. It should be recalled that the FRMF has set the number of Botola Pro D1 and 8 Botola Pro D2 clubs at 16 in order to comply with the criteria for access to the regime of sports companies, as part of the transformation of clubs in ‘associations in sports societies.