NOVEMBER 2024 – MOROCCO
2025 DRAFT FINANCE LAW
It is important that employers note the following:
Key measures announced in the 2025 draft Finance Law
On 19 October 2024 Morocco’s Ministry of Finance released the draft Finance Law (Projet loi de Finances, i.e., PLF) for 2025, proposing several key changes related to payroll. These are:
- Internship allowance exemption:
Private sector interns will be eligible for a 12-month exemption on internship allowances. For trainees with indefinite employment, a monthly salary cap of MAD 10,000 will also be eligible for the exemption during this period, if the conditions in subsection 16 of article 57 are met. - Revised income tax brackets:
Annual income tax brackets will be revised, raising the exemption threshold from MAD 30,000 to MAD 40,000. Higher brackets will also be adjusted, with the top tax rate reduced from 38% to 37%, as follows:
- Increased family allowance deduction:
The family allowance deduction per dependent will increase from MAD 360 to MAD 500, up to a limit of MAD 3,000. - Supplementary pension exemptions:
Pensions will be exempt from income tax if the contract term is at least eight years and contributions weren’t previously deducted from taxable income. This eight-year requirement is waived in cases of the insured’s death or disability.
If approved, these changes will take effect in January 2025.
To view the 2025 draft Finance Law, follow the link.
Kindly note that the law is only available in French.
