Personal Taxation in Morocco

Slim Gargouri provides an outline summary of the taxation of individuals in Morocco.

Introduction - Residence

All Individuals resident in Morocco must pay tax on their employment income.

Individuals are considered as resident in Morocco when:

• They maintain their home in Morocco
• They maintain the centre of their activities in Morocco
• They are present in Morocco for at least 183 days during a period of 365 days

Employment Income

Employment income includes gross remuneration (including the market value of fringe benefits). However, some expenses are deductible such as professional expenses, social security contributions, contributions to employer subscribed group medical insurance, etc.

Moreover, some exemptions are provided for by the tax legislation. The following types of income are exempted:

• Family, state and pension allowances
• Workers' compensation payments for industrial accidents or death
• Specific allowances for professional expenses if they are not excessive and are not covered by special reductions
• Retirement benefits and severance pay
• Alimony payments received

Rates of Income Tax

The current Income Tax rates are as follows (progressive rates):

Social Security Contributions

Social security contributions are based on gross remuneration including fringe benefits and bonuses. The employee contribution is withheld monthly.

Tax Year

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.

Administration

In order to avoid double taxation on the same income, tax treaties have been signed by Morocco with several countries. Nationals of the United States and member countries of the European Union are not required to obtain entry visas. Foreign nationals may work in Morocco if they fulfill all the following requirements:

• Obtain a work contract signed by an entity established in Morocco
• Obtain a residency card renewable annually
• Have a contract stamped by the Ministry of Work in Morocco

Family members intending to reside with a working expatriate in Morocco must obtain residence cards. A working expatriate’s spouse or dependents who intend to work in Morocco must independently apply for and receive separate work permits. Children of working expatriates do not need student visas to attend schools in Morocco.

Summary

International employee mobility is becoming a complicated issue worldwide due to the specific tax and social security regime in addition to some rules providing for compulsory procedures.  

We are preparing a database in order to explain all these rules (in more than 100 countries). The above is an overview on an individual’s taxation in Morocco. Further information will soon be available concerning other countries.

Article Added Sunday, 01 November 2009

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