Morocco - Apply for Employment Income Tax

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Procedure

Step 1

• Employer should Go to the Office of General Directorate of Taxes at CUSTOMS AND EXCISE ADMINISTRATION in Morocco.

Request for Employment income Tax registration form for either a single employee or for multiple employees. Fill the form with the Employee details this can be captured manually from the the employee records this information can be imported from the payroll Records file.

Note that the step by step guideline is also available on the NCSS website for new employee's registration.

step 2

On successful completion of the registration form the employer should attach on the form the required documents in not less that 30 days.

• Present the documents to the customs and exercise administration for the employee to receive Tax reference number.
• All application for employees submitted by the employer to custumes and exercise administration that do not have Income Tax reference numbers, shall not be included in a process.

General Directorate of Taxes officers shall validate the employees demographic information submitted by the employer by checking form in respect of each employee. Employees are required to report their income to the tax authority and remit the tax due on their income only if they have income other than employment income.

Step 3

You will be asked to wait while for your documents to be processed. Employers will be provided with feedback on the registration status of an employee regardless of the channel used for registration.Where an employee was not registered successfully, the employer will be informed of the reasons for not registering the employee An application for registration will be declined where an employee is already registered for Employment Income Tax with costumes and exercise administration.employers are notified of the outcome of the submitted requests for Employment Income Tax registration for approved and/or rejected applications.

Step 4

You will be required to pay to the cashier necessary tax.On successful completion of the registration process and paying the Taxes,an sms confirming the registration will be sent to the employee directly on his phone number.

Step 5

If approved you can now Pick up your Employment income tax certificate.

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Required Documents

During registration the following Documents are required :

• A copy of certificate of incorporation from the Employer.
• List of income earned from employment or annual income from rewards.
• The Directors Tax Clearance Certificates (now Electronic Tax Clearance Certificate)
• Letter of application for registration,

Office Locations & Contacts

CUSTOMS AND EXCISE ADMINISTRATION

Avenue Annakhil, Hay Riad 10000 Rabat, Morocco

Phone : + 212 537 57.90.00 / + 212 537 71.78.00

E-mail : [email protected]

Website : http://www.douane.gov.ma

From Morocco dial (Eco number) : 0801007000

Eligibility

Residents of Morocco are eligible to pay Employment income tax based on the following grounds.

i). Income from Sole Proprietorship

ii).Income from Directors' Fees,Salaries, wages, compensation awards, overtime pay and all other cash and in-kind fringe benefits are taxed in Morocco.Because you have self-employment income, you will usually owe self-employment tax.

iii).Income from Investments: self-employment income from a business, a profession, commission, farming, or fishing,Dividends and interest received by residents from shares, bonds and debentures of companies that are officially listed on the Moroccan stock exchange.

iv)income from any activity you carried out for profit or with reasonable expectation of profit. A business includes:

a). a profession;

b). a calling;

c). a trade;

d). a manufacture;

f). an undertaking of any kind; and

g). an adventure or concern in the nature of trade.

note Employment income is not business income.

Fees

• The minimum monthly earnings used to calculate contributions are the legal monthly minimum wage.
• The legal monthly minimum wage is 1,433 dirhams in the agricultural sector and 2,028 dirhams in the nonagricultural sector.
• The maximum monthly earnings used to calculate contributions are 6,000 dirhams.

Employer

7.93% of gross monthly payroll.

• The minimum monthly earnings used to calculate contributions are the legal minimum wage.
• The legal monthly minimum wage is 1,433 dirhams in the agricultural sector and 2,028 dirhams in the nonagricultural sector.
• The maximum monthly earnings used to calculate contributions are 6,000 dirhams.

• 2% on annual net income between MAD360,000 and MAD600,000.

• 4% on annual net income between MAD600,001 and MAD840,000.

• 6% on annual net income over MAD840,000.

Validity

Valid for 1 year.

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Processing Time

Processing takes 7 working days

Related Videos

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Instructions

• If you do not pay Employment income tax during the year through withholding or by making estimated tax payments, you may have to pay a penalty.
• Earned income from any meaningful employment or gain a reward must register for Employment income Tax in Morocco.

Required Information

i) Name of Taxpayer

ii) Taxpayer Identification Number

iii) Business Name or Trade Name of Taxpayer

iv) Your Status

v) Bank Details

vi) Account Number

vii) Type of Employment

viii) Total Income received from employment, Income Total Tax Payable

Need for the Document

The Moroccan tax code does not make any distinction between Moroccan and foreign employees in relation to the taxation of employment income. General tax provisions would apply for the taxation of employment income earned by foreign employees in Morocco. An individual is considered a Moroccan resident for tax purposes if

• he/she maintains his/her home in Morocco

• he/she has his/her center of economic interests in Morocco

• he/she is present in Morocco for at least 183 days during any period of 365 days

In Morocco the Employment income tax is levied on salaries, wages, compensation awards, overtime pay and all cash and in-kind fringe benefits given to an Employee.

The determination of net taxable income depends on the residency status of the person, and is generally achieved by taking gross taxable income less certain allowable deductions (including mandatory social security contributions) Employment income Tax is usually taxed at progressive rates, the maximum rate being 38%. The employee's share of social security contributions is about 6.29% of his gross salary.

Tax is imposed on all salaries, remunerations and bonuses paid to managing directors, board members and managers of corporations for the performance of administrative duties.

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External Links

http://us.practicallaw.com/9-518-1029

http://www.ilo.org/dyn/ilossi/ssimain.viewScheme?p_lang=en&p_scheme_id=575&p_geoaid=504

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