Expatriate tax ebook - Morocco

Facts and figures

Pre arrival procedures
Employment visas
Tax year
Tax returns and compliance
Income tax rates
Sample income tax calculation

Pre arrival procedures
Any employer desirous of hiring a salaried employee, of foreign nationality, must obtain an authorization from the governmental authority in charge of employment. This authorization is granted in the form of a visa affixed on the employment contract.

Employment visas
The employer must submit a full file of employment contract and join the relevant documents. For any employment contract after first foundation, the employer should ask for its employee for an employment visa for a foreigner and obtain a Certificate from the National Agency of Employment Promotion and Competences (ANAPEC) which justify the lack of the corresponding recruitment profile among Moroccans.

The employment contract reserved for foreigners must be consistent with the form fixed by the governmental authority in charge of labour.

The Administration may, subject to the presentation of relevant documents, exempt some foreign salaried employees from the certificate issued by the National Agency of Employment Promotion and Competences, especially those seconded for a limited period to foreign companies successful bidders of public contracts or to subsidiaries of parent companies.

Tax returns and compliance
For the personnel employed by any corporation resident in Morocco, the tax is withheld at source by the employer on the basis of a progressive scale.

If the salaried employee is seconded by a non-resident corporation for a given period, the person must lodge a statement of income before 1st March. The taxpayer is taxed by tax roll after making a statement of annual overall income.

Tax year
The Moroccan tax year runs from 1st January to 31st December.

Income tax rates - resident individuals 2008/2009
For the personnel employed by any resident corporation, the income tax is deducted at source by the employer on the basis of a progressive scale the maximum rate of which is 38% after the application of the following cuts, both at the level of the taxable basis and the tax:

Income brackets in DH	Rate in %	Deductions
Annual		Annual
0 to 30,000	0	0
30,001 to 50,000	10	3,000
50,001 to 60,000	20	8,000
60,001 to 80,000	30	14,000
80,001 to 180,000	34	17,200
Beyond 180,001	38	24,400

Sample income tax calculation

Annual Gross Salary	178 412,16

Gross taxable salary	178 412,16
Professional fees. (20% of gross taxable wage ceiling to 30,000 / Year)	-30 000,00
National fund of social security contributions	-3 088,80
Compulsory health insurance	-42 818,88

Net Taxable salary	102 504,48

Rate of income tax ( see rate by income brackets)

Income tax	17 651,52

Information about Morocco:

Last updated 16 June 2011

Please be aware that the data included in this expatriate tax e-book is correct at the time of publication, however, we cannot guarantee that it is current at the time of reading this. Please do not act on the information contained within this e-book without first seeking expert, professional advice.
Disclaimer

Contact us

For further information on expatriate tax services in Morocco please contact Abdelkader BOUKHRISS.

Related websites

www.tax.gov.ma

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