Morocco’s Tax Chief: Only 6% of Self-Employed Workers Declare Income

During the conference-debate of the Grands Rendez-vous de Medias24, Kaitouni indicated that out of the nearly 430,000 registered self-employed workers, only 27,000 declare their income, i.e. a rate of 6.3%. A significant non-compliance rate, he notes, recalling that the government’s objective in creating the self-employed status was to simplify access to the formal sector by offering a favorable tax regime.

"Despite a very lightened taxation, the vast majority of self-employed workers do not comply with their declarative obligations. For me, the self-employed status is a form of legalization of the informal sector," argued the Director General of Taxes, however questioning the idea that "a reduction in taxes would mechanically lead to better tax compliance."

"When we reduce tax rates, instead of attracting more declarants, we lose them," lamented Kaitouni, adding that the non-compliance rate (6.3%) of self-employed workers is one of the highest in the Moroccan tax system.