Morocco Raises Social Solidarity Tax Threshold to 20,000 Dirhams for Individuals

The changes did not go towards the tax rate, which remains at 1.5%. As for the taxation of companies, it will be applicable from 1 million dirhams of net profit against 5 million dirhams proposed by the initial version of the 2021 Finance Bill.

Regarding the rate to be paid, a progressive system has been established, on three brackets. The majority deputies had proposed to implement two rates: 1% for salaries between 240,000 dirhams and 420,000 dirhams and 2% for those above 420,000 dirhams.

The Finance and Economic Development Committee of the House of Representatives had adopted, in the night from Wednesday to Thursday, with 21 votes in favor and 12 against, the first part of Finance Bill No. 65.20 for the 2021 fiscal year. These are 165 amendment proposals presented by various components of the Chamber and 20 others by the government.

All eyes are now on the first Chamber, which has the task of voting on the entire Finance Bill. The authorities reassure that these sessions will be held in compliance with the preventive measures against Covid-19.