This article was updated on 7 March 2022.
To sum up, there are 4 different types of taxes you’ll need to declare/pay:
TVA (Taxe sur la Valeur Ajoutée)
This is tax 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 either monthly or every 3 months
IS (Impôts sur la Société)
This is the tax 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%.
|Less than 300.000||10%|
|Between 300.001 & 1.000.000||20%|
|More than 1.000.001||31%|
For an example of how the IS calculation is made, please see this article.
For companies exporting services (ie remote workers), they’ll pay a maximum of 20% even if they make more than 1 million MAD.
IS is declared and paid annually
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.
|0 – 2,500 MAD||0%||–|
|2,501 – 4,166 MAD||10%||250 MAD|
|4,167 – 5,000 MAD||20%||666.67 MAD|
|5,001 – 6.666 MAD||30%||1,166.67 MAD|
|6,667 – 15,000 MAD||34%||1,433.33 MAD|
|15,001 MAD and up||38%||2,033.33 MAD|
For an example of how the IR calculation is made, please see this article.
Note that IR is not included in the CNSS, so you need to pay it separately.
IR is paid monthly
ID (Impôts sur les Dividendes)
Every year, your accountant needs to prepare a balance sheet. This sheet will have your expenses and your income, in order to calculate the net profit.
Each company has 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.
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