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Rabat – Employees of newly-founded companies in Morocco will continue to receive a tax exemption on income tax until the end of 2026.
Newly-founded companies, associations, or cooperatives will still be able to offer employees tax-exempt salaries until December 31, 2026, according to government documents released recently.
Under the 2023 state budget, individuals working for companies that were created between January 1, 2015, and December 31, 2022, would be able to benefit from the tax exemption for their employees for up to 10 employees per company over the course of 24 months. The tax exemption is for employees making MAD 10,000 ($918) or less.
“Currently, the provisions of Article 57-20 of the CGI (General Tax Code) allow for the exemption of IR -income tax- under the gross monthly salary capped at 10,000 dirhams paid by companies created during the period from January 1, 2015 to December 31, 2022, for up to 10 employees,” the state budget documents state
“This benefit is granted for a period of 24 months, from the date of recruitment of the employee subject to compliance with the conditions.”
The tax exemption is contingent on a number of conditions, however. To benefit from the tax exemption, employees should be given a permanent working contract. In addition, the recruitment should have taken place within the first two years of the company starting operations.
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