Tax In Morocco

A Contractor's Guide to Taxes : 

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: 

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 Calculator: 

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 : 

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: 

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!

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/
Currency: 
Moroccan Dirham (MAD)
Tax-free Threshold in: 
MAD30,000
Grossed Income: 
0 - 30,000
Tax Rate: 
0%
Grossed Income: 
>30,000 - 50,000
Tax Rate: 
10%
Grossed Income: 
>50,000 - 60,000
Tax Rate: 
20%
Grossed Income: 
>60,000 - 80,000
Tax Rate: 
30%
Grossed Income: 
>80,000 - 180,000
Tax Rate: 
34%
Grossed Income: 
>180,000
Tax Rate: 
38%
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)
How to File Taxes in: 

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 along with your completed application forms. The forms can be downloaded here 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. 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 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.

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.

Does the 183 day rule apply in: 

Yes

When do you become a tax resident in: 

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.

Am I taxed on my global income in: 

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.

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