Morocco Introduces New Social Tax for 2021 Amid Pandemic Recovery Efforts

According to the document summarizing the new tax measures of the 2021 finance bill, this social contribution on profits and income will be limited to a single fiscal year (2021), just like the one instituted in 2013. By initiating this tax, the government wants to continue mobilizing resources for the benefit of the underprivileged populations, particularly in the context of the particular circumstances induced by the Covid-19 pandemic.

In detail, this financial contribution should apply to individuals subject to income tax (IR) on income, of Moroccan origin, professional, agricultural and real estate as well as on salary income and assimilated income. The contribution will be calculated at a rate of 1.50% on the basis of the net global income before tax which is equal to or greater than 120,000 dirhams.

This contribution also takes into account companies subject to corporate income tax (IS), excluding companies permanently exempt from corporate income tax, companies operating in industrial acceleration zones, and service companies benefiting from the tax regime provided for the Casablanca Finance City financial center.

As for companies, this tax will be calculated on the basis of the net profit for the fiscal year used for the calculation of the IS and which is equal to or greater than 5 million dirhams for the last closed fiscal year, at a rate of 5% for oil distributors, telecom operators and cement manufacturers and 2.5% of IS for other companies.