How can an Umbrella Company Help with Contracting in Morocco?
Most freelance workers aren’t superheroes who successfully tackle these issues all on their own. There are companies who specialize in helping workers make the most out of their contracts.
They’re called Umbrella Companies (or, contractor management companies).
Basically, an Umbrella Company acts as your full-time employer, even though you maintain your independence as a contractor. They collect and filter payments from your clients, filtering out the necessary social security and fees. You send them your timesheets, and they send you payments.
Because they act as your “employer,’ they can sponsor you and provide a single work permit for multiple contracts in Morocco. Even better, most are experts in Moroccan and expat tax law, meaning they’ll also help you optimize your earnings in Morocco.
Although the Umbrella Company is technically your “employer,” you’re essentially freeing yourself to work even more independently. You still dictate your contracts, your hours, your schedule. The Umbrella Company simply filters out the time-consuming admin and immigration issues, allowing you to focus on your new contract.
Can I Organise My Taxes and Work Permit Myself?
Generally, you need to have an employer sponsor in order to secure the appropriate work permit and work visa for Morocco.
If you’re working independently, it can be difficult to find clients willing to sponsor you. Moreover, even if your client can do this, you’ll need a new sponsor each time you decide to take on a new contract. Of course, every new sponsor will mean more paperwork.
Also, are you familiar with the intricacies of the tax system in Morocco, as well as your own country’s laws on overseas earnings? If so, good on you!
However, if you’re like the rest of us, figuring out (much less reducing) your tax liability in Morocco and your home country can seem like full-time work in itself.
A Contractor’s Guide to Taxes in Morocco
One of the most consistently challenging aspects of contracting in Morocco is complying with the country’s tax system. As well as paying tax in Morocco, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.
How do I calculate my taxable income in Morocco
If you’re working in Morocco under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Morocco for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Morocco, but contractors may not be offered this service because of their short stay with each employer.
Anybody who can’t pay their tax in Morocco through PAYE is left with the prospect doing everything themselves.
Do you know much about Moroccan Tax Law? Does Morocco have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Morocco can range from 0 to 38 percent, and you need to be sure you are placed in the correct tax brackets.
Tax Filing as a Contractor in Morocco
| When Do You Need to Lodge Your Tax Return? | 31 March |
| Tax Filing Deadline | 31 March |
| Can you file it online? | Yes, https://www.tax.gov.ma/ |
How to File Taxes in Morocco as a Contractor
Step 1: Obtain an Access Code for ‘Simpl’
‘Simpl’ is the Directorate of General Taxation’s (Direction Générale de Impôts (DGI)) online tax filing service.
Obtain the access code and submit your membership application to your nearest regional or provincial tax office.
If you have not received this code by post, request it from your nearest tax office, or send a request to simpl@tax.gov.ma(link sends e-mail) along with your completed application forms. The forms can be downloaded here(link is external) by selecting ‘DOSSIER D’ADHESION AUX TELESERVICES SIMPL’ on the right of the page.
You will require the following forms:
- ADC920F/15I
- ADC930F/15I
- ADC940F/15I
- ADC950F/15I
Step 2: Register Online for ‘Simpl’
Access the DGI portal here(link is external). Click on ‘Téléservices Simpl’. Then click on ‘Adhésion’ (‘Membership’) and ‘Accédez au Simpl-Adhésion.
Follow the prompts and enter your Fiscal ID, and the access code provided to you by the DGI. After this, you will be required to fill in the details of your representative.
Step 3: Activate Your Account
The DGI will send you an email with a link and a temporary PIN. Click on the link to activate your account and choose a password.
Follow the prompts to select your payment method, and select whether to manage your own declarations and payments, or delegate someone to file on your behalf.
Step 4: Access DGI Teleservices
Once you have activated your account, you will receive another email from the DGI which contains the login and password to access the DGI’s teleservices (Simpl-TVA – Value Added Tax, Simpl-IS – Corporate Tax, and Simpl-IR – Income Tax). Check your SPAM folder if it does not appear in your inbox.
You can access these services via the DGI portal(link is external) by selecting ‘Télédéclarez & Télépayez’. Select the service you want to use and click ‘Accédez au Simpl-[ ]’ to log in.
Step 5: File Taxes
The service will lead you through the steps with pre-filled forms, calculation assistance and 24/7 access. It is recommended that you consult a translator as the service is in either French or Arabic.
Tax Figures in Morocco
| Currency | Moroccan Dirham (MAD) | ||||||||||||||
| Tax-free Threshold in Morocco | MAD30,000 | ||||||||||||||
| Income Tax Rates |
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|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Notes | Deductions: Deductions from gross salary include social security contributions, retirement contributions, a lump-sum deduction equal to 20% of gross salary (with a ceiling of MAD30,000 per year), charitable contributions, mortgage interest expenses, and professional expenses incurred in the operation of business. |
Tax Residency in Morocco
When do you become a tax resident in Morocco
You become a tax resident in Morocco when:
- You have a permanent home in Morocco;
- Morocco is your centre of economic interests; or
You are present in Morocco for at least 183 days within any 365-day period.
Does the 183 day rule apply in Morocco
Yes
Am I taxed on my global income in Morocco
Residents are taxed on their worldwide income, unless foreign-sourced income is excluded by a treaty. Non-residents are taxed on their Morocco-sourced income only.
Residents may be entitled to tax credits from withholding tax paid on certain types of income from other tax treaty countries.
Can you set up your own Limited Company in Morocco?
| How long does it take to set up | 9 days |
| How much does it cost | DH2,172 |
| Is it easy? | Starting a Business Rank: 35/190 (Source: World Bank) |
Tax Calculator in Morocco
If you are a contractor and want a calculation on your tax and net retention in Morocco, we can supply it to you free of charge.
Using an Umbrella Company for Income Tax in Morocco
Contractors in Morocco are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Moroccan umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).
The companies are experts in Moroccan taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Moroccan tax office or tax department directly including processing your tax refund if you are eligible.
How We Can Help You with Tax in Morocco
We work with numerous umbrella companies in Morocco, many of whom are experts in tax and immigration laws. If you have any questions about tax in Morocco, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Moroccan work permit.
Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Morocco but without the overhead of directly dealing with the Moroccan tax authorities. Get in touch with us today for some reliable advice on tax in Morocco!
A Contractor’s Guide to Work Permits in Morocco
Immigration is one of the primary concerns for any contractor hoping to start working in Morocco. Permanent employees will find it easy to get their Moroccan work permit because they’ll receive “sponsorship” for their entire stay from their prospective employer.
The Moroccan work permit, known more commonly as the Moroccan Work Visa, is dependent on this sponsorship because it confirms that you’ll be earning money during your stay in the country. Contracting in Morocco is more difficult because the work permit is tied to one employer, so you have to change it to suit each new contract. Thankfully, umbrella companies provide a convenient and effective solution to this issue.
How Does an Umbrella Company Work?
Most people want to do their work, earn their money and enjoy their spare time without taking on loads of admin in a new country. That is why an umbrella company can help.
When you’re working through an Umbrella Company, you’ll essentially be outsourcing the admin and tax issues to specialists.
While the umbrella company will charge a fee, you’ll likely end up saving more money in the long run: you’ll be able to focus on your work, expertly reduce your tax liability, and comply with all laws and regulations in Morocco (which means avoiding fees, fines, or even worse penalties).
How Can We Help You?
There’s a huge variety of Umbrella Companies with different specialities and advantages in Morocco. How do you find the right one for your circumstances?
We work closely with Umbrella Companies all throughout Morocco and match contractors with the right company for them. If you’ve already secured a contract in Morocco, we can help you find your best match (for free). Or, we can simply give you feedback on your situation (for free).
