Morocco

Tax residence in Morocco is determined, in order, by where an individual has their permanent home, the location of their center of economic interest, or presence in Morocco exceeding 183 days within any 365-day period.

Employment income tax is withheld by resident employers, and employees paid solely by one Moroccan resident employer have no separate filing obligation. Individuals earning taxable employment income from a non-resident entity or from multiple employers must file a return by 28 February of the following year; the statute of limitations for individual income tax is four years.

Individuals without Moroccan tax residence are taxed only on their Moroccan-sourced income, rather than on worldwide income as for residents.

Professional expenses are deductible up to MAD 35,000 (or 25% of gross taxable income up to that cap for higher earners), pension and life-annuity income receives a 70% deduction up to MAD 168,000, and pension-insurance contributions are deductible up to 50% of net taxable salary. Mortgage interest on a main home is deductible up to 10% of global taxable revenue, and charitable contributions to law-approved organizations are also deductible.

Employees of companies holding Casablanca Finance City (CFC) status may be taxed at a flat 20% rate for up to 10 years from their start date instead of the progressive scale, excluding employees of credit institutions and insurers; eligible employees may instead opt into the progressive scale before 1 February of the relevant year.

Morocco draws two exemption types: an exemption with credit, equivalent to the zero-tax concept, covering exported goods and services, pharmaceutical products, certain agricultural equipment, and supplies to free-trade-zone companies; and an exemption without credit, covering staples such as milk, bread, sugar and cereals, school supplies, newspapers and books, and interest on government loans.

Capital gains derived from the sale of real estate benefit from an exemption from Morocco's individual income tax if the property was used as the taxpayer's principal residence for at least six years; this is distinct from the capital gains on listed and non-listed shares that the headline rate models.