Employer Tax Contributions

Tax Type	Rate	Base
Family Allocations	6.40% (Employer)	Gross Salary (No Ceiling)
Social Benefits (Short-term)	1.57% (Employer)	Gross Salary (Capped at MAD 6,000)
Social Benefits (Long-term)	11.89% (Employer)	Gross Salary (Capped at MAD 6,000)
Mandatory Medical Care (AMO)	4.11% (Employer)	Gross Salary (No Ceiling)
Professional Training Tax	1.60% (Employer)	Gross Monthly Remuneration (No Ceiling)

Filing & Compliance

• Income Tax Withholding: Declare and pay withheld income tax monthly, typically by the end of the month following the salary payment.
• CNSS Contributions: Declare employee salaries and pay employer and employee social security contributions to the CNSS monthly, typically by the end of the month following the salary payment.
• Annual Wage Declaration: Submit an annual declaration summarizing total salaries paid and income tax withheld for each employee by January 31st of the following year.

In Morocco, employee tax deductions are calculated based on a progressive income tax system with various deductions and allowances applicable.

Income Tax

• Tax Rates (Effective January 1, 2025): Morocco's income tax system is progressive, meaning higher earners pay higher percentages. The updated brackets and rates are as follows:

  • MAD 0 to MAD 40,000: 0%
  • MAD 40,001 to MAD 60,000: 10%
  • MAD 60,001 to MAD 80,000: 20%
  • MAD 80,001 to MAD 100,000: 30%
  • MAD 100,001 to MAD 180,000: 34%
  • MAD 180,001 and above: 37%

• Example: An employee earning MAD 90,000 annually would fall into several tax brackets. The first MAD 40,000 would be tax-free. The next MAD 20,000 (up to MAD 60,000) would be taxed at 10%, totaling MAD 2,000. The next MAD 20,000 (up to MAD 80,000) would be taxed at 20%, adding another MAD 4,000. The remaining MAD 10,000 would be taxed at 30%, resulting in MAD 3,000 tax. Their total annual income tax would be MAD 9,000.

Social Security Contributions

• Employees in Morocco contribute to the Caisse Nationale de Sécurité Sociale (CNSS), the national social security fund. The contribution amounts are based on the employee's salary and cover various benefits, including healthcare, retirement, and family allowances.

Other Deductions

• Professional Expenses Allowance: Employees can deduct professional expenses. If annual taxable income is MAD 78,000 or less, the maximum deduction is MAD 35,000. If annual taxable income is over MAD 78,000, the deduction is 25% of income, also capped at MAD 35,000.
• Pension Contributions: Contributions to a qualifying pension plan are often deductible.
• Family Allowance: An annual deduction of MAD 500 per dependent is available, up to a maximum annual deduction of MAD 3,000 (Effective January 1, 2025).

Exemptions

• New Hires: Salaries paid to newly recruited employees hired between January 1, 2021, and December 31, 2026, are exempt from income tax for the first 36 months of employment. This applies to employees under 35 hired under an open-ended contract.
• Internship Allowance: Private sector interns are exempt from tax on their allowance for 12 months (Effective January 1, 2025).

Important Considerations

• Tax Year: The tax year in Morocco aligns with the calendar year.
• Filing: Employers typically withhold income tax and social security contributions from employee salaries. Employees must file an annual tax return if required.

This information is current as of February 5, 2025, and might be subject to change. It's important to consult official government sources or a qualified tax advisor for the most up-to-date information and personalized advice.