Foreigners, like locals, are taxed only on their Moroccan-sourced income. 

The following individuals are resident in Morocco for tax purposes: 

• Individuals who are habitually resident in Morocco
• Individuals who are present in Morocco for at least 183 days in a given year, whether or not continuously
• Individuals whose professional activities or centre of economic interests are located in Morocco.

Married couples are taxed separately.

Taxable income includes:

All compensation received by an individual is taxable, including: 

• Salaries and wages
• Allowances
• Pensions
• Annuities and all other employment benefits
• Investment income
• Property income
• Income derived from the carrying out of a business or profession

Income tax is levied at progressive rates:

Capital Gains Tax (taxe sur les profits immobiliers or TPI)

Capital gains derived from the disposal of immovable property generally are subject to a 20% tax. Higher rates are applicable in some specific cases. Capital gains derived from the disposal of shares are subject to tax at 20%. 

Capital gains derived from the disposal of a residence used as principal residence for at least six years are exempt from taxation. 

New buildings are exempted from the tax for a 5-year period following completion.

Other taxes on individuals 

• Capital duty – No
• Stamp duty – No
• Capital acquisitions tax – No 
• Real property tax – The transfer of property is subject to the 20% tax on capital gains, but the tax payable cannot be less than 3% of the transfer price. Undeveloped land can be subject to higher rates of taxation ranging from 25% to 30%, depending on the period of ownership. 
• Inheritance/estate tax – There is no inheritance tax, but a gift tax is levied at a flat rate of 20%. 
• Net wealth/net worth tax – No 
• Social security – An employer is required to register its employees with the social fund and pay social security contributions based on the employee’s salary. Both the employer and employee are required to contribute and the employee’s contribution is withheld by the employer. 

Compliance for individuals 

• Tax year – Calendar year 
• Filing and payment – The global income tax return, when applicable, must be filed before 1 March of each year in the place where the taxpayer has his/her habitual residence or main business. Independent professional must file before 1 April. 
• Penalties – Interest and penalties apply for late filing, failure to file or filing an incorrect return. 

Value added tax 
Taxable transactions – VAT is levied on all industrial, commercial and craft activities, and on services rendered in Morocco, as well as on import transactions. 

Rates – The standard rate of VAT is 20%, with reduced rates of 7%, 10% and 14% applying to certain transactions. 

Registration – All persons subject to VAT must make a declaration of existence within 30 days of the start of their operations in order to register for VAT purposes. 

Filing and payment – VAT returns must generally be filed on a monthly basis. 

Other – Nonresident taxpayers carrying out taxable transactions in Morocco are required to appoint a fiscal representative in Morocco. However, under the reverse charge mechanism, a Moroccan customer of a nonresident taxpayer who has not appointed a fiscal representative should declare the VAT on the transaction on its own VAT return and account for the VAT due. 

Article source:

Deloitte

See also:

Glossary of Moroccan terminology

Visas and work permits for Morocco

Areas to rent and buy property in Morocco