Morocco to Exempt Salaries Under 10,000 Dirhams from Income Tax Starting 2027
In a significant announcement for the Moroccan workforce, Fouzi Lekjaa, the Minister of Economy, Finance, and Public Sector Performance, revealed an ambitious income tax reform during the unveiling of the 2027 Finance Bill. The proposed reform is set to exempt a staggering 87% of salaried employees from income tax by the year 2027. This means that only 13% of workers will continue to bear the tax burden, marking a notable shift in fiscal policy aimed at alleviating financial strain on the majority of the population.
Effective from January 1, 2027, any net monthly salary below 10,000 dirhams will be entirely free from income tax. Lekjaa elaborated on the implications of this measure, indicating that it will provide approximately 500 dirhams in additional monthly income for the bulk of affected employees. This fiscal measure is projected to have a profound impact on the national economy, with an estimated fiscal cost of around 5.5 billion dirhams for the year as it seeks to enhance the disposable income of workers.
Looking ahead, the reform is expected to evolve further in the coming years. By 2031, employees earning 11,800 dirhams monthly will see their tax exemption increase their monthly take-home pay by 1,186 dirhams, while those with monthly salaries of 18,700 dirhams will benefit from an increase of up to 3,079 dirhams. This progressive approach demonstrates the government's commitment to improving the financial conditions of its citizens, particularly as the nation navigates economic challenges.
As reported by en.yabiladi.com.
