Morocco to exempt only justified professional expenses from tax
By the AFREEQUE newsroom, based on Libe
Morocco’s 2027 finance bill proposes limiting income-tax exemptions to allowances reimbursing real and justified professional expenses. The measure is due to take effect by 2031, alongside the target new tax scale, according to the explanatory note published by the Ministry of Economy and Finance.
Morocco’s 2027 finance bill would reserve income-tax exemptions for allowances corresponding to professional expenses actually incurred and justified by employees. The measure, planned for 2031, is included in the explanatory note published by the Ministry of Economy, Finance and Public-Sector Performance.
Permanent allowances linked to the normal performance of a job would be excluded from the exemption and treated as taxable salary supplements. The ministry said the change aims to limit tax optimisation involving the presentation of sums that reimburse no specific expense as professional costs.
The bill also proposes raising the flat-rate deduction for professional expenses to 45% for all employees, up to a limit of 35,000 dirhams. From 2031, this deduction could no longer be combined with the exempt allowances provided for under the General Tax Code. The current rate is 35% for taxable annual gross income not exceeding 78,000 dirhams and 25% above that, with the same deduction limit.
This provision is part of the 2027 budget bill, whose guidelines were adopted by Mohammed VI on 17 October. The bill also proposes to exempt taxable income up to 5,000 dirhams from tax, according to a measure published on 23 October.
