Do you pay tax in Morocco?

*Income Tax*

- Individuals who are domiciled in Morocco are taxed on their total worldwide income on a progressive basis.

- Residents are subject to income tax at progressive rates ranging from 0% to 38% on a sliding scale.

-Income from employment is subject to a number of deductions, including a personal allowance, dependent deductions and social security contributions.

- Any net losses arising from self-employment can be carried forward and offset against future income from self-employment.

*Corporate Income Tax*

- Resident companies are subject to corporate income tax on their worldwide income at a flat rate of 31%.

- Non-resident companies are taxed on Moroccan-sourced income at a rate of 37%, except when such income is attributable to a permanent establishment, which is taxed at 31%

- Losses can be carried forward for a period of five tax years.

*Tax Treaties

- Morocco has entered into a number of tax treaties to avoid double taxation.

- Morocco has double tax agreements in force with some 52 countries.

*Value-Added Tax (VAT)*

- VAT is a consumption tax that is levied on the supply of goods and services within Morocco.

- The standard VAT rate is 20%, but there are also two reduced rates of 14% and 7%, which apply to certain goods and services such as food, books, and public transportation.

- Foreign persons may recover Moroccan VAT incurred on business-related expenses by obtaining a VAT number and filing an application for a VAT refund.

*Other Taxes*

Other taxes in Morocco include:

- Customs and excise duties

- Property taxes

- Capital gains tax

- Stamp duties

- Inheritance and gift tax

- Local taxes