Morocco

Individual - Significant developments

Last reviewed - 06 September 2019

Extension of the list of expenses used to determine the tax situation of individual taxpayers

Starting 1 January 2019, the list of expenses used to assess the coherence of the revenues declared by taxpayers has been extended in order to include all types of personal costs (e.g. spending on luxury goods, expenses relating to domestic workers, travel costs)

Reduction of individual income tax rates on turnover reported by auto entrepreneurs

Starting 1 January 2019, the turnover declared by auto entrepreneurs is reduced as follows:

  • From 1% to 0.5% for commercial, industrial, and handicraft activities.
  • From 2% to 1% for services.

Modification of the tax regime applicable to rental revenues 

Prior to 1 January 2019, rental revenues were subject to the individual income tax at the standard progressive scale after application of statutory deductions.

Starting 1 January 2019, rental income is subject to individual income tax (based on the gross amount) at the following rates:

  • 10% for annual gross revenues lower than 120,000 Moroccan dirham (MAD).
  • 15% for annual gross revenues equal to or exceeding MAD 120,000.