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
Download PDFAmendment of professional expenses deduction for 2023 tax year