Morocco’s New Solidarity Tax Exceeds Revenue Expectations, Raising 3.3 Billion Dirhams

The announcement was made by the Minister of Finance, Mohamed Benchaâboun, who informs that this new tax should bring in between 5 and 6 billion DH to finance the first phase of the social security system.

According to the 2021 finance law, explains the minister, each taxpayer must pay 1.5% of income tax on the annual net income if his income is above 240,000 DH. As for companies, they are required to pay between 1.5 and 3.5%, depending on the net profit. In this context, the law provides for 1.5% for companies whose net profit is between 1 and 5 million DH; 2.5% for companies whose net profit is between 5 and 40 million DH; 3.5% for companies whose net profit exceeds 40 million DH.

On the initiative of King Mohammed VI, a social security project is being introduced to ease the financial pressure on the working class. This social project will bring new health benefits to Moroccan workers such as farmers, artisans and other self-employed workers without employees.

"This social project is a true social revolution, as it will have direct and tangible effects on improving the living conditions of citizens," the king had argued, announcing that within five years, all Moroccans would benefit from social security.