Morocco –Tax Exemptions Granted to Encourage Employment.
Mercans, a leading Morocco payroll outsourcingPEO/GEO, employee leasing, recruitment, and BPO services provider, has published a Morocco payroll outsourcing alert. Subscribe to Mercans’ Morocco payroll outsourcing alerts to ensure that you are always up-to-date with the latest regulatory changes in Morocco’s labor and payroll compliance requirements.

Income tax exemption for new hires.

New hires, who meet the below conditions, are granted an income tax exemption during the first 36 months of their employment:

  • Employee is recruited under a permanent contract;
  • Employee is not more than 35 years old;
  • Employee was hired during the period of January 1st and December 31st, 2021.

Exemption from the income tax granted to the employees who lost their jobs due to the COVIDd-19 pandemic.

As a transitional measure, the finance law 2021 has exempted employees from the personal income, subject to the following restrictions and conditions:

  • Monthly gross salary of the employee does not exceed MAD 10,000;
  • The employee involuntarily lost their job due to the COVID-19 pandemic during the period of 1 March to 30 September 2020;
  • The tax exemption is valid for 12 months from the hire date;
  • The employee was hired in 2021;
  • The employee must have benefited from the end-of-service benefits granted by the Social Security (CNSS);
  • The employee cannot benefit twice from this exemption.

Mercans’ Morocco Payroll Outsourcing Solutions

While Mercans’ Morocco Payroll Outsourcing alerts will allow you to stay on top of the latest development in Morocco’s payroll regulations, you should still get in touch with Mercans’ Morocco payroll outsourcing, compliance, PEO/GEO, and BPO specialists for a free consultation on setting up fully compliant payroll and HR functions. Better yet, outsource your payroll and HR activities in Morocco to Mercans and our Morocco payroll outsourcing experts will ensure that your employees will always be paid on time and in accordance with the Morocco regulations.

Download PDF: Morocco Payroll Outsourcing Alert