Abstract

In Morocco, tax expenditures are used as an instrument of government policy instead of

direct expenditures. In order to provide a government subsidy to a class of taxpayers or to
encourage investment in certain sectors or regions, as well as business support in the
territory of our country. This support makes it possible to develop economic activity, to help
economic operators to make profits in a rapidly changing economic context, to grant better
treatment to investors by reducing the burden, And a key factor in supporting investment
and the gradual recovery of the national economy during the crisis that was generated by
the covid-19 pandemic. These can take different forms, including tax exemption, tax
deduction, compensation and favorable tax rate or the general rule on the time of tax
liability, such as accelerated depreciation of fixed assets, which reduces or defers the tax
payable by the taxpayer.

Tax expenditures in the Maghreb countries (example: Algeria, Tunisia), and European
countries bordering the Mediterranean Sea (example: France, Spain) constitute a transfer of
public resources made through a reduction in tax obligations compared to a benchmark tax
of varying degrees, in order to support their investment as well as their economic growth.
Tax incentives have been criticized for being mismanaged. Also, assessing the effects of tax
expenditures is very difficult, because it depends on external factors. for all these reasons
and others, investment performance obviously requires measures and precautions to
accompany a set of mechanisms to facilitate the act of investing: tax fairness, formalities,
procedures, authorizations, availability of land, support and assistance.

Key words: Tax Expenses; Investment; Economic growth ; Tax Equity.