Morocco Announces Income Tax Reforms for Workers Earning Under MAD 12,000

Rabat– The Moroccan government is implementing changes to the income tax (IR) scale as part of the 2025 Finance Bill, with a primary focus on supporting low-income individuals earning less than MAD 12,000 (USD 1,200) per month. 

During a meeting of the Finance and Productive Sectors Committee in the House of Representatives on Friday, Delegate Minister for the Budget, Fouzi Lekjaa, outlined the key measures included in the reforms to income tax and value-added tax (VAT).

In his address to the MPs, Lekjaa explained that the goal of revising the income tax scale was to “distinguish salary income from other types of income.” He added, “Our intention was to establish two separate income tax scales. We explored all possible avenues and consulted both national and international experts, but no viable solution emerged.”

Lekjaa emphasized his commitment to achieving this goal, stating: “The possibility remains open; if we find a way to separate them, we will adopt it.” He underscored his belief in a participatory approach, noting that he has been following this issue for months to reach a fair solution.

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He further clarified that the primary beneficiaries of the income tax reform will be low-income workers. Approximately 70% of those affected by these changes will have an annual income below MAD 180,000, which equates to a gross monthly salary of MAD 15,000 and a net salary of MAD 12,000. 

When questioned about the need to distinguish between low-income earners and those with exceptional incomes of MAD 200,000, Lekjaa acknowledged the importance of this distinction. 

“I agree that this distinction is important, and I don’t want you to benefit from it. However, I am open to any proposals you may have on this issue and look forward to your input,” he said. 

Lekjaa highlighted the significance of the new measures introduced by the amendments to Articles 73 and 74 of the General Tax Code (CGI). These measures include the revision of income tax rates, an increase in the annual family burden deduction, and enhancements to the income tax framework for real estate earnings.