Summary of the main taxes and social contributions by companies in Morocco

• Summary of the main taxes and social contributions by companies in Morocco

 

Among the questions we have had during our communications with our new customers are the following:

Company tax (IS)

The calculation of corporate tax is determined from the net taxable result after deductions of losses carried forward. The rate that will be applied to determine the amount of corporate tax is:

Amount of net profit	Rate
Less than or equal to 300,000 DHS	10%
From 300,001 to 1,000,000 DHS	20%
More than 1,000,000 DHS	31%

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Who pays income tax in Morocco?

Are considered as taxpayers:

natural persons who have their tax domicile in Morocco, on the basis of all their income and profits, from Moroccan and foreign sources;

natural persons who do not have their tax domicile in Morocco, on the basis of all their income and profits from Moroccan sources;

persons, whether or not having their tax domicile in Morocco, who make profits or receive income for which the right to tax is attributed to Morocco by virtue of conventions tending to avoid double taxation with regard to income tax.

It is considered that a person is domiciled for tax purposes in Morocco when he has his permanent home or the center of his economic interests in Morocco. This is also the case when the continuous or discontinuous duration of his stays in Morocco exceeds 183 days for any period of 365 days.

The dividend rate is between 5% and 15% (or even 25%) depending on tax treaties avoiding double taxation.

 

Value added tax

The frequency of VAT is quarterly when the taxable turnover achieved during the year does not exceed one million (1,000,000) dirhams. If the turnover reaches or exceeds one million (1,000,000) dirhams, the periodicity of VAT is monthly.

The VAT rates are therefore:

– Normal rate: 20%

– Reduced rate: 14%; 10%; 7%; 0%

Income Tax at Source

The income tax calculation scale is set as follows:

	2021 income tax schedule: Annual income brackets
RNI of (MAD)	RNI at (MAD)	Tax rate	Deduction (MAD)
0.00	30 000.00	0 %	0.00
30 001.00	50 000.00	10 %	3 000.00
50 001.00	60 000.00	20 %	8 000.00
60 001.00	80 000.00	30 %	14 000.00
80 001.00	180 000.00	34 %	17 200.00
180 001.00	+	38 %	24 400.00

Exemption from income tax for the gross monthly salary capped at 10,000 DHS under the TAHFIZ program for a period of 24 months and consideration of the employer’s part by the state for the 10 employees.

Social solidarity contribution

For companies, the aforementioned contribution is calculated on the basis of the same amount of net profit referred to in article 19-I-A of the CGI used for the calculation of corporate tax and which is equal to or greater than one million (1,000 .000) of dirhams, for the last closed financial year, according to the following proportional rates:

• • •  
    • 1.50% for companies whose net profit is in the range of 1,000,000 to 5,000,000 dirhams;
    • 2.50% for companies whose net profit is in the range of 5,000,001 to 40,000,000 dirhams;
    • 3.50% for companies whose net profit exceeds 40,000,000 dirhams.

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For natural persons, the contribution is calculated on the overall annual income from Moroccan sources net of tax, consisting of acquired or realized income referred to in article 267 of the CGI, when the amount of said income is equal to or greater than 240,000 dirhams. . This contribution is calculated according to the rate of 1.50%.

Local taxes

It is :

Local authority tax, Professional tax (exempt for the first 5 years), Housing tax, Municipal services tax, Tax on undeveloped urban land, Tax on construction operations, Tax on subdivision operations, Tax on drinking establishments, Tourist tax, Tax on mineral and table water, Tax on public passenger transport, Tax on the extraction of quarry products, Tax on driving licenses, Tax on motor vehicles subject to the technical visit, Tax on the sale of forest products, Tax on hunting permits, Tax on mining operations, Tax on port services.

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Accounting obligations

Any subject person must:

– Keep regular accounts to determine the turnover and to identify the amount of tax which it operates the deduction or claims the refund;

– If it concurrently carries out activities taxed differently with regard to value added tax, have accounts enabling it to determine the taxable turnover of its business.

– Persons carrying out operations subject to value added tax are required to issue to their buyers or customers liable to the said tax invoices in good and due form (Art 145)

Payment of your social security contributions

Service category	Calculation basis	Employer contribution rate	Wage Charge Rate	Overall rate
1- Family Benefits	Pre-written Ready Emails	6,40%	—	6,40%
2- Short-term social benefits*	Total capped salaries (each capped at 6000 dhs)	1,05%	0,52%	1,57%
3- Long-term social benefits	Total capped salaries (each capped at 6000 dhs)	7,93%	3,96%	11,89%
4- Compulsory Health Insurance	Total actual wages for the period (month/quarter)	4,11%	2,26%	6,37%
5- Professional training tax	Total actual wages for the period (month/quarter)	1,6 %	—	1,6 %

Of which 0.57% relating to compensation for loss of employment broken down as follows: the employer’s charge is 0.38% and the wage charge is 0.19%

 

Certified Chartered Accountant DPLE – Chartered accountan

 

 

Tangier, Morocco, 90000.
info@aafir.ma
Website: www.aafir.maThe beneficiary (company) holds at least 10% of the capital of the distributing company

The beneficiary (company) holds at least 10% of the capital of the distributing company.