Western Sahara's tax system is largely influenced by Morocco's, especially in Moroccan-controlled areas. In Polisario-controlled areas, formal employer costs are less common.

Employer Tax Contributions

Tax Type	Rate	Base
Social Security (CNSS)	Approx. 21.09% (employer share)	Gross Salary (with ceilings for some benefits)
Professional Training Tax	1.6%	Total Gross Salary
Income Tax Withholding (IR)	Progressive scale (0%-38%)	Net Taxable Income

Filing & Compliance

• Monthly Declarations: Employers must declare and pay withheld Income Tax and CNSS contributions monthly.
• Monthly Deadline: Payments are typically due by the end of the month following the salary payment.
• Annual Declaration: An annual declaration summarizing salaries and withheld IR for each employee is usually due by January 31st.

Employee tax deductions in Western Sahara are complex due to the contested nature of its administration. While Morocco administers most of Western Sahara, the Polisario Front claims sovereignty and administers some areas. This makes definitive tax information challenging to provide, as it depends on the controlling authority where the employment takes place. However, general information regarding tax deductions applicable under Moroccan administration can be outlined.

Income Tax

• Tax Brackets and Rates (2025): Morocco's income tax system is progressive, with rates for 2025 as follows:
  • 0% for annual income up to MAD 40,000
  • 10% for MAD 40,001 to MAD 60,000
  • 20% for MAD 60,001 to MAD 80,000
  • 30% for MAD 80,001 to MAD 100,000
  • 34% for MAD 100,001 to MAD 180,000
  • 37% for income above MAD 180,000
• Exemption Threshold: Annual income up to MAD 40,000 is exempt from taxation.
• Family Allowance: A deduction of MAD 500 per dependent, up to a maximum of MAD 3,000, is applicable.

Other Deductions

• Professional Expenses: Employees can deduct certain professional expenses. The cap is MAD 35,000 for those with gross annual taxable income not exceeding MAD 78,000, and 25% of income (up to MAD 35,000) for those earning above MAD 78,000.
• Pensions and Annuities: A 70% deduction applies to pensions and annuities on amounts up to MAD 168,000.
• Meal Vouchers: Employers providing meal vouchers can deduct an amount of MAD 40 per day.

Employer Obligations

Employers in Western Sahara operating under Moroccan administration are responsible for withholding employee income tax and social security contributions. The deadline for monthly payroll tax is typically the 7th of the following month. Corporate income tax also applies to businesses, and rates vary by industry and income level.

Additional Notes

Information provided here pertains to areas under Moroccan administration and is based on the latest available information as of February 5, 2025. Always consult with local tax authorities or legal counsel for the most up-to-date and accurate information. Tax laws are subject to change, and the specifics of your situation will determine the exact deductions and obligations applicable.