Morocco to Introduce Single Professional Tax for Small Businesses in 2021

The Minister of Economy and Finance is examining the CPU, which will be recorded in the 2021 finance bill currently being drafted, reports L’Économiste. The income tax, the professional tax and social security contributions are the components of the CPU. "This is a measure that will allow the integration of thousands of merchants. Currently, the contribution of flat-rate payers to tax revenues is very low. Nearly 80% of them pay almost nothing," says Abdelmajid Faiz, vice-president of the Tax and Customs Commission at the CGEM.

For Mohamadi El Yacoubi, former president of the Professional Organization of Certified Accountants, the implementation of a single flat-rate contribution is of paramount importance. "It would be very useful to implement this measure resulting from the recommendations of the last tax conference. It will make it possible to revisit the tax regime of flat-rate payers by instituting a single professional contribution integrating income tax, professional tax and social security contributions. This CPU deserves to be extended to self-employed workers," he argues.

However, a major challenge will have to be met. This concerns the risks of companies "profiting" from fleeing to this regime. "The whole challenge is therefore to find a way to effectively fight against these ’stowaway passengers’ who are already numerous and who risk increasing with the implementation of the CPU. Currently, a good part of false flat-rate payers and self-employed workers take advantage of the shortcomings of the organization and unjustly benefit from a subsidized tax system," notes Mr. El Yacoubi.