Morocco Unveils 2025 Finance Bill with Major Tax Reforms and Anti-Fraud Measures

Specific measures for income tax, specific measures for value added tax (VAT), specific measures for registration duties, common measures, codification of parafiscal taxes. The tax measures recorded in the 2025 Finance Bill can be summarized in five main points.

Under the specific measures for income tax, the government plans to restructure the progressive income tax scale. It is therefore proposed to introduce measures such as raising the first bracket of the scale relating to the net income exempt from 30,000 dirhams to 40,000 dirhams, which will exempt all salaries below 6,000 dirhams per month; the revision of the other brackets of the scale, in order to widen them and reduce their tax rate, resulting in a reduction of these rates ranging from 1 to 3 points and the reduction of the marginal rate of the previous scale from 38% to 37%. It is also proposed to raise the threshold for the application of withholding tax on rental income from 30,000 to 40,000 dirhams.

The government also plans to increase the annual amount of the income tax reduction for family burdens. It is proposed to increase the annual amount of the income tax reduction for family burdens from 360 to 500 dirhams per dependent person. The annual ceiling of this reduction will therefore be raised from 2,160 dirhams to 3,000 dirhams, while maintaining the benefit of this reduction for six (6) dependents. Other specific measures for income tax: revision of the conditions for exem