| Taxable Income MAD |
Tax Rate |
| Upto 30,000 | 0% |
| 30,001 to 50,000 | 10% |
| 50,001 to 60,000 | 20% |
| 60,001 to 80,000 | 30% |
| 80,001 to 180,000 | 34% |
| Above 180,000 | 38% |
| Auto-entrepreneurs with annual turnover of less than MAD 500,000 for commercial, industrial and artisal activities undertaken and with annual turnover of less than MAD 200,000 for services provided | 1% to 2% |
Tax Base For Residents and Non-Residents
Individuals with their main homes in Morocco are taxed on the totality of their incomes. Individuals with their main home outside of Morocco are taxed only on Moroccan-sourced income.
Allowable Deductions and Tax Credits
There are several types of deductions assigned to taxables in Morocco. Input tax is deductible from output tax if the goods and services purchased are used for business purposes. Partial exemption is provided for taxable supplies.
Special Expatriate Tax Regime
No special provisions. However, Morocco has signed a non-double taxation agreement with the majority of the countries.
Capital Tax Rate
Capital gains from the sale of property are generally taxed at 20% as part of ordinary income, at a minimum of 3% of the selling price. The sale of a shares of a resident company are taxed at 10%.
A 10-30% business tax (taxe professionnelle) applies to the annual rental value of business premises of individuals and companies that engage in regular business activity in Morocco, capped at MAD 50 million and allowing for exemption for the first 5 years. A property tax applies to the rental value of property (about 10%) and to machinery and appliances used for production of goods and services. For properties that are primary residences, only 25% of the assessed rental property is taxable. Main or second residences are progressively taxed.
Consumption Taxes
Nature of the Tax
Value Added Tax (VAT) Standard Rate20% Reduced Tax Rate
A reduced rate of 10% applies to specific items including banking and financial services, leasing, gas, water, electricity, raw sugar, raw logs, certain farming equipment, catering services and food for cattle feed.
A reduced rate of 7% applies to certain consumer
goods. The government is working to align the VAT
system towards two rates of 10% and 20%, eliminating
the 7% category.
Zero-rated items are exports, agricultural materials
and equipment and fishing equipment, and can be tax
deductible.
Exclusion From Taxation
Tax exempt items are basic foodstuffs, newspapers, and international transport services, which are not tax deductible.
Method of Calculation, Declaration and Settlement
VAT is levied on the net sale price of the supply of goods and services in Morocco and on import transactions.
Other Consumption Taxes
Domestic consumption taxes on wine (MAD 700/hectolitre), energizing drinks (MAD 500/hectolitre) tobacco, sugar, oil products etc. Plane tickets for international flights departing from Moroccan airports are taxed at MAD 100 for Economy class and MAD 400 for Business and First class. Luxury vehicles are taxed at progressive rates up to 20%.
Morocco Income Tax Rate for Individual Tax Payers
Lowest Individual Tax Rate is 10% and Highest Rate is 38%
| Taxable Income MAD |
Tax Rate |
| Upto 30,000 | 0% |
| 30,001 to 50,000 | 10% |
| 50,001 to 60,000 | 20% |
| 60,001 to 80,000 | 30% |
| 80,001 to 180,000 | 34% |
| Above 180,000 | 38% |
The Income Tax (IT) applies to income and profits of natural persons and legal entities that have not opted for Corporate Tax.
The concerned incomes are:
Wage income;
Professional income;
Land income and profits;
Income from movable capital and profits;
The agricultural income (exempt from the IT and CT until 12/31/2013 (L.F. 2009)
Corporate Tax Rates in Morocco
The Corporate tax applies mandatory to
income and profits of capital companies, public institutions and
other corporations that carry out lucrative transactions and on
an irrevocable basis to partnerships.
30%: Normal rate
37%: Fixed rate for credit institutions, Bank Al Maghrib, CDG, insurance and reinsurance companies and leasing companies.
Besides, specific rates and partial or total exoneration apply for certain products and payments.
Value Added Tax
VAT applies to industrial, craft, commercial and liberal activities, as well as import operations.
Retailers? income is also taxable when their turnover accomplished during the year exceeds or equals 2,000,000 DH.
There are three rates:
A standard rate of 20%
Reduced rates of 7% for certain consumer products, 10% on certain food products, beverages and hostelry industry in particular and 14% for other products.
Besides, specific rates and partial or total exonerations apply for certain products and payments.
Capital Gains Tax in Morocco
Capital gains tax is 20% of profit with a minimum of 3% of the sale price. TPI is based on the sale price less the purchase price.
Purchase price includes the following:
- Credit expense
- Registration cost
- Notary fees and tax
- Repairs
- Brokerage fees
- Inflation (based on a government table)
The second option in calculating the purchase price is to just
add 15% to the purchase price. This option is often used in the
case that invoices are not available to justify the expenses.
Exoneration from Capital Gains
The property is sold after owning it for more than ten years.
The property is owned for more than 5 years but less than 10 years. In this case the TPI tax 10% of any capital gain over 1 million dirhams.
Inheritance Tax
This tax is 0% for family members. Expert advice should always
be obtained prior to implementing any inheritance tax planning
strategies.
The most important piece of advice we can offer on this subject
is ? make a Moroccan will
Morocco Due Dates for filing Returns / Reporting and Payment
The tax year in Morocco for individuals is the calendar year. Moroccan residents must file annual general Income Tax returns before 1 April following the end of the tax year.