Morocco: farmers caught up in taxes

The measure, provided for in the 2023 finance law, aims at a gradual generalization of the principle of taxation of the global income of individuals. "From now on and for fiscal years opened as of January 1, 2023, taxpayers with only exempt agricultural income are required to file their annual global income tax return, according to a simplified model established by the administration," explains Thami Bouhank, chartered accountant and member of the Regional Council of the Order of Chartered Accountants of the Rabat-Salé-Kenitra region, to Challenge.

The exemption from filing the annual global income tax return for exempt agricultural operators "has been repealed [...] in harmonization with the declaration obligation provided for agricultural companies exempt from corporate income tax," Bouhank added. This obligation was taken in the name of tax equity between the different actors in the agricultural sector, individuals or legal entities, it is indicated.

However, "taxpayers with agricultural income and generating an annual turnover of less than 5 million dirhams remain permanently exempt from income tax," the Directorate General of Taxes (DGI) recently recalled, stressing that the income tax return required of small farmers remains a formality, the aim being to have reliable and comprehensive tax data on the activities of the agricultural sector, a vital sector for the Moroccan economy, in order to make it more competitive.