Morocco

EXPATRIATE AND EMPLOYER TAX COMPLIANCE AND ADVISORY
Tax rate Progressive tax rate: 0% – 38% (Annual income below 30 000 DH will not be taxed).
Tax period Calendar year.
Tax residency / Domicile according to domestic law Persons are deemed to be domiciled in Morocco for tax purposes when:
• their permanent home is in Morocco;
• they have the centre of their economic interests in Morocco; (Mane activity, where the ratepayer devotes more effective time, Mane investment)
• their lenght of stay in Morocco (present for 183 days or more in a calendar year);
These criteria are listed in order of importance.
Tax registration Completed by tax residents in Morocco.
Employment income definition Any remuneration and benefit in cash or in kind received by an employee for services rendered under an employment agreement.
Examples of tax exemption – Family allowances and family support, termination indemnity, Voluntary termination indemnity, and any compensation for damages awarded by the courts in the event of dismissal and within the limit fixed by the labor code;
– Other indemnities under specific conditions.
Specific expatriate concession
Income of board members No specific treatment for income of boards members in terms of taxation if they are wage earners. However, some indemnities can be exempted for this category of employees.
Tax returns Employers are required to submit, before March 1st of each year, to the tax inspector of their fiscal domicile or head office  a return of wages, detailing  income of the employees of the company.
Individuals aswell are required to sumit a return detailing their total revenues.
Tax payments The previous Finance Laws introduced the obligation to report personal income tax electronically for companies and individuals.
The payment can be made either online on the tax administration portal or in cash with the bank or by credit card.
Tax on real estate property Rental revenues are taxed using the progressive tax rate with a tax relief of 40% on the tax basis.
Real estate profits are taxed at a rate of 20%, applied on the difference between:
– the transfer price, less the costs of disposal, and
– the purchase price, plus acquisition costs, capital expenditures and interest paid on the credit of the property.
TAX TREATIES
Employment income / income from board members Art 15/16 Model OECD Tax treaties
INTERNATIONAL SOCIAL SECURITY
Cross border employments
Exception under Art 16 of Reg. 883/2004
and Art 17 of Reg. 1408/71
Social Security Cost as % from gross salary and absolute amounts The moroccan social security system is composed of various schemes providing a wide range of benefits.
This system includes social security basic coverage (sickness, maternity, disability, work-related accident benefits and old age state pension), unemployment benefits, compulsory complementary retirement plans, complementary death/disability coverage and complementary health coverage.
This contribution is shared between the employer and the employee. The employee’s share is collected by the company and paid to the CNSS. It is calculated at a rate of 4,48% on a basis limited to 6000 MAD as a maximum. Compulsory health insurance (AMO) is calculated on a rate of 2,26% without any limit on the basis.
IMMIGRATION
Work permit A work visa is required to settle and work in Morocco, this visa must be requested within the first 3 months of your arrival, and a residence permit from the prefecture of your new city of residence.
The work requires a legal authorization. If you work for a company, the company will take care of most of the procedures for obtaining your work permit.
Visa Morocco’s requirements for issuing visas vary according to the nationality of the applicants. Citizens of the countries such as: Algeria, Canda, Niger, China, mali … are allowed to reside in Morocco for 90 days without a visa. Beyond this period, the visa application becomes mandatory.
Residency permits / registration certificate A foreigner wishing to stay in the Moroccan territory must apply to the administration for a residence permit. This permit can be a residence permit or a registration card that must be kept or submitted to the administration within 48 hours. The registration card is replaced by the receipt for issuing or renewing the card. This request is made to the services of the “National Security” or the “Royal Gendarmerie”.
Driving license Foreign drivers may drive with a driving license issued abroad, but for a maximum of one year from their temporary stay in Morocco.
At the end of the one-year period, holders of a permit issued abroad must take the tests to obtain the Moroccan driving license or request the exchange of the driving license.
STOCK OPTION PLAN The taxation of the stock options depends on their source. For moroccan stock options, the sale capital gains are taxed at a rate of 15% for listed shares and 20% for non listed shares. For foreign stock options, acquisition capital gains are taxed using the progressive tax rate, and the sale cpaital gains are taxed on a rate of 20%.
ARTICLE 15 OF THE OECD MODEL
183 days These notions are generally consistent with the OECD model tax treaty. However, some differences may exist and vary depending on the specificities of every tax treaty.
Notion of employer These notions are generally consistent with the OECD model tax treaty. However, some differences may exist and vary depending on the specificities of every tax treaty.
Existence of a permanent establishment These notions are generally consistent with the OECD model tax treaty. However, some differences may exist and vary depending on the specificities of every tax treaty.
Asma Charki
Executive Partner & Head of Tax
Send Email
Direct line: ‘+212 5 22 423 423
Address: 101, Bd Abdelmoumen, Casablanca, Morocco
www.mazars.ma

 

Anas El Ghozail
Senior Tax Consultant
Send Email
Direct line: ‘+212 5 22 423 423
Address: 101, Bd Abdelmoumen, Casablanca, Morocco
www.mazars.ma