Change in Income Tax Tables and Allowances
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On October 19, 2024, Morocco’s Ministry of Finance introduced the 2025 draft Finance Law (Projet Loi de Finances, PLF), proposing several significant payroll-related measures:
Internship Allowance Exemption
- Private-sector interns will benefit from a 12-month exemption on their allowances.
- For trainees transitioning to indefinite employment, a monthly salary cap of MAD 10,000 will qualify for the exemption during this period, subject to conditions outlined in subsection 16 of Article 57.
Revised Income Tax Brackets
- The annual income tax exemption threshold will increase from MAD 30,000 to MAD 40,000.
- Higher income tax brackets will be adjusted, including a reduction in the top tax rate from 38% to 37%.
| From (MAD) | To (MAD) | Rate (%) |
|---|---|---|
| 0 | 40000 | 0 |
| 40001 | 60000 | 10 |
| 60001 | 80000 | 20 |
| 80001 | 100000 | 30 |
| 100001 | 180000 | 34 |
| 180001 | 99999999999 | 37 |
Enhanced Family Allowance Deduction
- The deduction per dependent will increase from MAD 360 to MAD 500, with a maximum allowable deduction of MAD 3,000.
Supplementary Pension Exemptions
- Pensions will be income tax-exempt if the contract duration is at least eight years and contributions have not been previously deducted from taxable income.
- The eight-year requirement is waived in cases of the insured’s death or disability.
Note: The above changes have not been approved by the Morocco authority. Once it is approved it will be effective from January 2025.
Please contact your Mercans’ services delivery team for any additional information regarding the implications of the above change.
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Morocco – Change in Income Tax Tables and Allowances
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