To sum up, there are 4 different types of taxes you’ll need to declare/pay:
TVA (Taxe sur la Valeur Ajoutée)
This is a taxation paid for the added value. This tax is added to the price of the final product when sold locally. If you take any receipt from a local vendor, like a supermarket, etc. You’ll find information about the TVA. In Morocco, the shown prices are already taking into account the TVA, in other countries like Canada, the shown prices do not include the TVA.
The TVA in Morocco is 20% with some exceptions. For example, 14% for butter, 7% for canned sardines, etc.
Now, there are two points you need to take into account:
- TVA is paid for product/services sold in Morocco. If you work as a freelancer/remote for an international company, you don’t pay the TVA. But keep in mind that any service you sell in Morocco will be taxed with the 20% in the TVA.
- Even if you don’t pay the TVA, you need to declare it. Yes, even if it’s 0.
TVA is declared every 3 months
IS (Impôts sur la Société)
This is the taxes you pay on the company’s benefices. Before 2019, all companies paid the same amount: 30%. But with the new 2019 finance law, there is a grid ranging from 10% to 31%.
Check the specific about the ranges and the percentages from this site.
For all new companies, you’ll be exonerated from paying these taxes for the first 5 years. Then you’ll be paying 17.5% afterwards, regardless of where you fit in the grid. This is my first year with a company, so I didn’t pay this. But I’m reading info from this website and this document. I’ll make sure to update this after I pay my first IS (if I can remember this after 4 years 🤭 )
IS is declared and paid yearly
IR (Impôts sur le Revenu)
This is the tax you’ll pay on the salary you pay yourself. The amount can go from 0% to 38% depending on the salary. You can find a list here in this document.
Noting that IR is not included in the CNSS, so you need to pay it separately.
IR is paid monthly or yearly
ID (Impôts sur les Dividendes)
Every year, your accountant need to prepare a balance sheet. This sheet will have your expenses, your profit, in order to calculate the net benefit.
Each company have the freedom to do whatever it wants with the net benefit. Some prefer to re-invest it in the company itself, others prefer to invest in other companies, etc. One possibility is rewarding the shareholders, ie, taking the benefit and sending it to the “owners” of the company. If you go with this path, you need to pay 15% of this money as dividends taxes.
ID is paid annually after the annual exercise
That’s it, you have all the info about taxation in Morocco. And as we have always suggested, and will always do, get an accountant to take care of this for you.
You should only worry about your work, everything else should be delegated to those who know how to handle it.