1. What are we talking about? The property-sale tax ruling
The prior ruling request is a tax ruling: instead of declaring and then waiting — sometimes for years — to find out whether the administration challenges the price, the seller asks the DGI to rule beforehand. The administration examines the components used to determine the net taxable property gain and the amount of the corresponding tax — or the right to an exemption (notably main residence).
The mechanism, provided for in article 234 quinquies of the CGI, applies to disposals carried out since 1 July 2023. It responds precisely to the risk of an after-the-fact challenge to the declared price.
2. The procedure, step by step
- Step 1 — The preliminary sale agreement is signed. It opens the window: the request must be filed electronically within 30 days of the date of the preliminary agreement.
- Step 2 — Building the file. The request presents the components of the planned transaction, with the supporting documents for determining the tax or the exemption: preliminary agreement, original acquisition contract, works and investment invoices, proof of costs — and, ideally, an independent valuation report attached from filing (see below).
- Step 3 — The administration replies within 60 days, in the form of a liquidation certificate for the tax.
- Step 4 — The certificate is valid for 6 months. The seller who reports and pays in accordance with the certificate is exempt from a tax audit on the IR on property gains for that disposal.
💡 The right reflex: attach a valuation report to the request — before the administration replies
It is preferable to file the prior ruling request accompanied by an independent valuation report, rather than waiting for the administration's reply to react. The reason is simple: during the 60 days of review, the DGI forms its position on the elements it has before it. If the file contains only the preliminary agreement, it will rely on its own references; if the file contains a report compliant with RICS (Red Book) standards — condition noted, areas verified, comparables documented, explicit methodology — it is that report which frames the discussion, and the liquidation certificate is very likely to reflect your price rather than the theoretical value of a reference grid. Once the ruling is issued, it is too late to give weight to your file: only the alternative remains of following the ruling… or paying the 5% provisional and accepting a possible audit. The timing is comfortable: the report is delivered within 5 to 8 days (48-72 h express), well within the 30-day window after the preliminary agreement.
3. Without a prior ruling: the provisional 5% payment of the price
This is the flip side of the scheme, and it is often discovered at the notary's office. The seller who does not request the prior ruling — or who does not report in accordance with the ruling received — must pay, provisionally, the difference between 5% of the sale price and the amount of tax reported.
- Automatic refund if the administration does not open a correction procedure within 90 days of the declaration.
- In the event of an audit (correction procedure under article 224 of the CGI), the provisional payment is set off against any reassessments, and the balance is refunded.
In other words: the State sets up a 5% guarantee on the price while it verifies your declaration. It is not an additional tax — but it is immobilised cash, at the very moment the seller is counting on the proceeds of their sale.
4. The link with the 3% minimum contribution — a worked example
A reminder: the TPI due is 20% of the net gain, but cannot be lower than the 3% minimum contribution of the sale price — even in the absence of a gain. The 5% provisional payment, for its part, is calculated on the sale price. The mechanics on a sale at MAD 2,000,000:
- Tax declared at the minimum contribution (little or no gain): 3% × 2,000,000 = MAD 60,000.
- Provisional ceiling: 5% × 2,000,000 = MAD 100,000.
- Without a prior ruling, the seller advances the difference: MAD 40,000 of immobilised cash — automatically recoverable if no audit is opened within 90 days.
- With a prior ruling followed: MAD 60,000 paid, MAD 0 set aside, and a definitive audit exemption.
5. The real issue: the value the administration will retain
The prior ruling has a blind spot that sellers discover quickly: the administration rules on the basis of the elements transmitted and of its own assessment of the property's value. If it considers the preliminary-agreement price to be below the market value, the liquidation certificate will reflect its value — and the seller faces a choice:
- Follow the ruling: pay the tax on the value retained by the administration, higher than the real transaction price. Total security, but an unjustified tax surcharge if your price was the right one.
- Not follow it: declare on your real price, pay the provisional up to 5% of the price, and prepare for a possible correction procedure.
In both cases, everything turns on the ability to document the property's real value: condition, wear and tear, works to be expected, letting situation, relevant comparables. An independent valuation report compliant with RICS (Red Book) standards, prepared from the preliminary agreement, serves both scenarios — it supports the prior ruling request (supporting documents), and it provides the defensible basis if you choose to stand by your price before the administration. Cost: from MAD 3,500 excl. tax, report within 5 to 8 days.
6. The notary's role — and what they do not do
- What the notary does: secures the deed, watches the 30-day reporting deadline, usually collects the tax at signing, and — increasingly — recommends the prior ruling request from the preliminary agreement to secure the transaction on both the seller's and the buyer's side.
- What they do not do: establish the property's market value. That is neither their role nor their profession. If the property's value is debatable (atypical property, condition discount, quick sale), the prior ruling file needs documentation that only an independent valuation provides.
7. Should you request the prior ruling? Our reading
- Yes, almost always, when the sale price is in line with the market and the supporting file is clean: the audit exemption is well worth the 60-day wait — and it avoids immobilising up to 5% of the price.
- Yes, with a valuation in support, when the property sells at an explainable discount (condition, urgency, configuration): the documented report maximises the chances that the certificate retains your price.
- To weigh up, when the sale timetable cannot tolerate the reply time: the 5% provisional payment with a refund within 90 days may be the price of speed — provided you have the cash and a solid file in the event of an audit.
8. FAQ
Is the prior ruling request mandatory?
No, it is an option. But the alternative has a cost: without a prior ruling (or without a declaration in line with the ruling), the seller provisionally pays the difference between 5% of the sale price and the tax declared, recoverable if no audit is opened within 90 days.
Within what deadline must I file the request?
Within 30 days of the date of the preliminary sale agreement, electronically (the DGI's SIMPL online services). The administration replies within 60 days and the liquidation certificate remains valid for 6 months.
Does the prior ruling also protect in the event of an exemption (main residence)?
Yes — the request can bear on the right to the exemption itself. This is even one of its most useful uses: having the occupancy file validated upfront (invoices, residence tax) rather than seeing the exemption challenged after the sale.
What happens if I ultimately sell at a price different from the preliminary agreement?
The certificate is established on the basis of the elements transmitted, including the preliminary agreement. If the transaction changes substantially (price, scope), the file must be re-examined — consult your notary before the final deed.
Is a RICS valuation required for the request?
No, no text imposes it. But the request relies on supporting documents, and the property's value is at the heart of the discussion: an independent valuation report, attached from filing — before the administration issues its ruling — frames the review and maximises the chances that the certificate retains your price. Once the ruling is issued, it is too late to strengthen the file. Report within 5 to 8 days, from MAD 3,500 excl. tax, firm quote within 24 h.
Signing a preliminary agreement? The 30 days are already running.
RICS-certified experts — a valuation report in support of your prior ruling request or your declaration, within 5 to 8 days (48-72 h express). Reports compliant with Red Book standards, everywhere in Morocco.
Related articles
Note: Mechanism provided for in article 234 quinquies of the CGI (disposals from 1 July 2023) — see the DGI's official guide on the prior ruling request for IR on property gains (tax.gov.ma). Deadlines, terms and refund are governed by the texts in force: confirm your situation with your notary or a tax adviser. To document the value of your property, see our real estate appraisal service or the ReaConsult blog.