Individual - Significant developments

Last reviewed - 28 September 2022

Exemption from payroll tax

Salaries paid by any company, cooperative, or association, regardless of the date of its creation, to an employee on the occasion of his or her first recruitment are exempt from income tax for the first 36 months following said recruitment, under some conditions.

The Finance Act 2022 has extended until the 31 December 2022 the measure instituting the exemption for 36 months, in favour of the first permanent contracts concluded by employees up to 35 years old.

Social solidarity contribution (SSC) applicable to individuals

The 2022 Finance Act extended the application of the SSC on the profits of individuals subject to income tax, according to the real net income regime, for the year 2022. The contribution is calculated on annual Moroccan-sourced income after tax that is equal to or greater than 240,000 Moroccan dirham (MAD). The applicable rate is 1.5%.