Morocco Eases Tax Burden: 2023 Finance Bill Offers Relief for Lawyers and Businesses

For lawyers, the amount of the advance will be reduced from 300 dirhams to 100 dirhams. There is also a provision for a five-year exemption from advances and professional tax, and a three-year exemption from the minimum income tax rate for newly registered lawyers with the Tax Directorate, reports the daily Les Inspirations Eco. The withholding tax rate for companies will be reduced from 10% to 5%. However, the withholding on income paid by the State and public institutions and enterprises will be limited.

Regarding the 20% withholding tax on fees and emoluments of liberal professions, it will be reduced to 10% for individuals and 5% for legal entities for the turnover realized with the State, local authorities or public companies and institutions.

For so-called inactive companies, the filing of the declaration of cessation of activity will be reduced from the initially planned 20,000 dirhams to 5,000 dirhams for each non-prescribed fiscal year. There are also changes to the income tax, particularly for new hires. From now on, they have the possibility of benefiting from an exemption from income tax for 36 months, provided that it is a first recruitment on an indefinite-term contract, from January 1, 2022 until December 31, 2026.