Morocco to Overhaul Flat-Rate Tax System for Small Businesses

The latest version of the draft supplementary finance law provides for the establishment of a "single professional contribution" targeting individuals whose professional income is determined according to the flat-rate regime, reports L’Économiste.

According to the same source, the new system would include the taxes and duties (income tax, professional tax and municipal services tax) to which this category of taxpayers carrying out low-income proximity activities is subject. These taxes and duties will be supplemented by social security contributions, it is specified.

This measure aims to converge towards a simple, fair and equitable regime for this category of taxpayers, and will allow them to benefit from social coverage and an exemption from all other taxes and fees.

Also, the restructuring of the tax on certain categories of flat-rate taxpayers aims to support the targeted persons in the acquisition of the necessary skills and means to better organize themselves before a transition to the accounting regime.