Payments from Marocco to EU
Thread poster: Birthe Omark

Birthe Omark  Identity Verified
Denmark
Local time: 12:38
Member (2006)
French to Danish
+ ...
Apr 4, 2016

I am wondering about the best payment method for translation delivered to a company in Marocco?

My client claims that I as the vendor have to pay 11,1% tax which the bank charges for payments for abroad.
I thought that this only relates to private payments and not to payments for commercial activities an commercial invoices.

Any experience?
We are talking about relatively large sums, so Paypal is also no issue, as the charge is embedded in the poor exchange rate.

Best
Birthe


 

Elif Baykara Narbay  Identity Verified
Turkey
Local time: 14:38
German to Turkish
+ ...
Why should you pay the client's tax? Apr 4, 2016

Birthe Omark wrote:

I am wondering about the best payment method for translation delivered to a company in Marocco?

My client claims that I as the vendor have to pay 11,1% tax which the bank charges for payments for abroad.
I thought that this only relates to private payments and not to payments for commercial activities an commercial invoices.

Any experience?
We are talking about relatively large sums, so Paypal is also no issue, as the charge is embedded in the poor exchange rate.

Best
Birthe




I pay the charges, fees, taxes etc. I am (officially) liable to pay for. I have clients who pay all the banking fees and I have other clients who pay only the fees on their side. All as agreed. But in no way I pay the clients fees or taxes.

On one hand, I pay a banking fee of about 30 USD for international money transfers. On the other hand, as you have also said, PayPal applies a commission of a certain percentage. So, for me it is more advantageous to accepts payments via PayPal up to a certain amount (e.g. 80 Euros) and via bank wire transfer for payments above that amount.

Elif


 

Birthe Omark  Identity Verified
Denmark
Local time: 12:38
Member (2006)
French to Danish
+ ...
TOPIC STARTER
Agree for normal procedure ... Apr 4, 2016

I agree, the normal procedure is that the client pays transfer fees - this is a normal business condition - and particularly if there is a matter of tax.
I also agree with you that PayPal or similar are better solutions for small payments.

From countries within the EU the transfer costs are never the problem or countries without a protectionistic approach to their currency.

Birthe


 

Sheila Wilson  Identity Verified
Spain
Local time: 11:38
Member (2007)
English
+ ...
11.1% bank fees??? Apr 4, 2016

Birthe Omark wrote:
My client claims that I as the vendor have to pay 11,1% tax which the bank charges for payments for abroad.
I thought that this only relates to private payments and not to payments for commercial activities an commercial invoices.

I'm not sure what you mean when you say "bank tax". It's quite likely that the sending bank will charge for transferring the money, just as your own bank may well charge for receiving it. But 11.1% is enormous!

The normal business practice is for client and supplier to pay their own bank's fees, i.e. "shared". No way do you have to pay the client's fees unless it was specified before doing the job.

Have you asked for documentary evidence of what he's saying? Personally, I would want to see that first - something from the bank or other authority saying that the supplier must pay. Until then I'd stay very cool and businesslike but I'd keep up the pressure to pay. He contracted you to do the job for a certain fee; you did it; now you want to be paid that fee, not less than 90% of it!


 

Birthe Omark  Identity Verified
Denmark
Local time: 12:38
Member (2006)
French to Danish
+ ...
TOPIC STARTER
Unacceptable , yes and without precedent for me! Apr 4, 2016

Thank you Shiela!
I entirely agree, that this is a totally unacceptable and unorthodox procedure, as this was never mentioned in the framework agreement.
This is my first experience with Marocco, and the job was just snowballing, so that I did not get my guards up in time or effectively.

I have already contacted the Danish representation in Marocco to get confirmation og rejection of this particular claim and await a reply from them.

Kind regards,
Birthe


 

Thomas T. Frost  Identity Verified
Member (2014)
Danish to English
+ ...
Double tax agreement Apr 4, 2016

I had the same problem with an agency in Morocco, but it was sorted out before work commenced.

Morocco is one of those countries with a protectionist 'import' tax, which makes foreign suppliers liable for tax in Morocco.

However, they have to abide by the double tax agreements in place. The one between Denmark and Morocco is here:

https://www.retsinformation.dk/Forms/R0710.aspx?id=64044 (Danish)

http://www.skm.dk/media/105738/marokko.pdf (bilingual Danish-French, scanned version)

Article 14 concerns independent professions such as ours and clearly says income is only taxable in the country where you live and work, unless you also work some of the time in the other country. The one with Germany says the same thing.

Presuming you don't work in Morocco, they can therefore not withhold their 10 % tax on foreign suppliers.

This works between me and my client, in any case, but I got a clause into our agreement to the effect that in case future law changes make such a tax payable, they alone are responsible for paying that tax.

Because of all the restrictions in Morocco, the only way to pay is presently bank transfer. I have accepted to pay my own fees (none at the bank I use) and the intermediary bank fee, which is €7, as it would be more expensive for them to pay all the charges, and it's a good client. As Danish banks usually don’t charge much for international transfers, it shouldn’t be a problem for you either.

The transfers can be a bit slow and take 1-2 weeks, though. If the bank employee dealing with international is away on holiday/illness/rest/extended coffee break/can’t-be-bothered-leave etc., nothing may get done for a few days.


 

Birthe Omark  Identity Verified
Denmark
Local time: 12:38
Member (2006)
French to Danish
+ ...
TOPIC STARTER
Thank you Thomas! Apr 4, 2016

This is exactly what I needed. I an kick myself for not having thought of checking for a double tax agreement, but I am also surprised that none of the authorities (also my bank) has been able to inform of this.

I will digest the info and arrange for the matter to be solved with reference to this matter.

I hope that I can get in touch with you if I need further clarification.

Thanks a lot again.
Birthe


 

Thomas T. Frost  Identity Verified
Member (2014)
Danish to English
+ ...
You're welcome Apr 4, 2016

Glad I could help. Just ask here if you have more questions. I follow this topic. Or ask me directly.

 


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