Morocco Amended Professional Expenses Deduction for Tax Year 2023

The Finance Law for the 2023 has amended the lump-sum amount applicable for reducing income subjected to employment tax for salary and pension earners.

For the tax year commencing on 1 January 2023, the below is applicable:

• The annual Professional Fees exemption threshold has been amended from 30 000 MAD to be 35 000 MAD
• If the annual gross salary for Professional Fees ≤ 78 000.00 MAD, then the rate to be applied is 35%. This means that for employees earning annual income up to the maximum of 78 000, their Professional Fees exemption will be less than the maximum threshold of 35,000 MAD
• If the annual gross salary for Professional Fees > 78 000.00 MAD, then the rate to be applied is 25%. This means that employees earning annual income exceeding 140 000 will have their Professional Fees exemption capped at 35 000 MAD per year.

These changes are effective from 1 January 2023.

Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change

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Amendment of professional expenses deduction for 2023 tax year

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