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The adoption of Morocco’s Finance Law for the fiscal year 2021 was marked by a political debate focused on the economic revival of the sectors most affected by the pandemic. Thus, certain provisions of the finance Law supports the economic sectors from a fiscal, social, and financial standpoint, so that they can regain their growth.
Regarding the provision relating to the social solidarity contribution, the Finance Law finance, in part, the expansion of Compulsory Health Insurance’s scope (l’Assurance Maladie Obligatoire AMO) to cover micro-entrepreneurs, auto-entrepreneurs, and workers in the informal economy, in order to provide them with medical and social coverage.
With regard to income tax, it will be deducted from any net salary exceeding Twenty Thousand Dirhams (20.000MAD) and up 1.5% as a social solidarity contribution. The initial government proposal was for a net remuneration of Ten Thousand Dirhams (10.000MAD), before being amended by the Parliament.
In order to encourage recruitment, the Finance Law exempts from Income Tax, the salary paid to an employee on their first recruitment, for the first three years from the date of said recruitment.
However, the employee's age must not exceed thirty-five (35) years on the date of conclusion of their first contract
This provision is in favor of the labor market as it is likely to refresh the job market after a year of a health crisis.
The Finance Law exempts, until the end of June 2021, any purchase of economical housing from registration fees, this measure only concerns housing that is worth 140,000 MAD or 250,000 MAD, this new provision aims to refresh the economical housing market as it encourages households with an average income to access housing.
The auto-entrepreneurs tax’s ceiling has increased from 200,000 MAD to 500,000 DH for services and from 500,000 DH to 2,000,000 MAD for commercial and industrial activities,
This is an extremely important provision that encourages entrepreneurship and microenterprises as well as contributes to the fight against the informal economy that is neither taxed nor monitored by any form of government.
