Morocco Pensions 2026: Full Tax Exemption for Basic Retirement Income

The 2025 Finance Law introduced a full exemption for retirement pensions and life annuities from basic schemes as of January 1, 2026. This reform comes as Morocco’s population over 60 now represents 13.8% of the total, or more than 5 million people. However, the scope of this measure remains targeted: more than 80% of Moroccan seniors receive no pension, while among current beneficiaries, a large majority already received amounts below the taxation threshold, raised to 40 000 DH per year, Challenge points out.

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This tax boost does not cover all retirement income. Pensions paid by supplementary schemes, such as CIMR, supplementary RCAR or CMR-ATTAKMILI, as well as foreign-source pensions, remain subject to income tax (IR) under ordinary law. In addition, 2025 served as a transition period, with the exemption limited to 50%, meaning that returns to be filed before the end of February 2026 for income from the previous year do not yet benefit from full exemption.

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Administratively, taxpayers receiving only exempt basic pensions are now exempt from filing the annual comprehensive return. However, the filing obligation remains for retirees with other taxable income, such as property income. In this specific case, the basic pension must be mentioned in the return but is not included in calculating the taxable base—a provision that, according to the tax analysis, sets aside the fundamental principle of IR progressivity.