Morocco Unveils 2021 Budget: New Tax Measures for Businesses and Households

With an investment budget increasing to 230 billion dirhams, Finance Minister Mohamed Benchaâboun was able to free up budgetary room to reduce the budget deficit to 6.5% in 2021, instead of 7.5% in 2020, reports Médias24.

Thus, new measures that could nevertheless impact the wallets of households and businesses in 2021 have been taken. First, people subject to income tax will have to pay an additional 1.5% contribution on their net salary, in addition to the usual income tax, starting with the first paycheck of 2021. However, only people receiving a monthly net income of more than 20,000 dirhams are affected by the measure. As for people looking for their first job or who have lost their job due to the health crisis, an exemption from income tax will be granted and many other benefits, specifies the same source.

As for merchants, craftsmen and other professionals who have paid a lump-sum tax on their business activity so far, they will be able to switch to a simpler system, that of the single professional contribution, the CPU, as of January 1. For companies, there is first the solidarity contribution that companies, like individuals, will pay, but from certain scales and the reduction from 1 to 0.5% of registration duties for the formation and capital increases by contribution in kind, the abolition of registration duties on bonds, debt acknowledgments and assignment of creations and several other benefits.

The Finance Act has also granted some gifts to the horse breeding, poultry and private audiovisual media sectors. The import-export sector has not been left out of the changes and many other sectors.