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Morocco Finance Law 2026: 5 Changes Affecting Your Income Tax (IR)

Morocco's 2026 Finance Law, promulgated late December 2025, introduces several significant changes to the General Tax Code directly affecting income tax (IR) calculation for millions of salaried workers and self-employed individuals. Here's a rundown of the 5 major changes and their concrete impacts on your pay stub or annual return.

YABy Yasmine El AmraniMay 12, 20266 min read

1. Exemption threshold raised to 40,000 MAD/year

The most emblematic change: the total IR exemption threshold rises from 30,000 MAD/year to 40,000 MAD/year. In concrete terms, this means no income tax is owed as long as your annual net taxable salary stays under 40,000 MAD, or about 3,333 MAD/month / 4,200 MAD monthly taxable gross after deductions.

Direct impact: SMIG-level workers (3,111 MAD/month gross) are now fully exempt from IR, whereas they previously paid about 30-50 MAD/month under the old scale. For workers, line agents and low-income salaried employees, this is a direct purchasing power gain of 360-600 MAD/year.

2. Intermediate brackets harmonization

Intermediate brackets have been slightly adjusted to smooth gaps. The new 2026 scale is: 0% up to 40,000 MAD/year, 10% on 40,001-60,000 MAD, 20% on 60,001-80,000 MAD, 30% on 80,001-100,000 MAD, 34% on 100,001-180,000 MAD, and 37% above 180,000 MAD. The old scale had an additional 38% bracket above 180,000 MAD that was removed and merged with 37%, simplifying calculations.

3. Enhanced Retirement Savings Plan (PER)

The deductibility ceiling for PER contributions from IR has doubled: it rises from 25,000 MAD/year to 50,000 MAD/year. For a senior executive (34% bracket), this represents potential tax savings of 50,000 × 34% = 17,000 MAD/year additional in tax optimization, provided you subscribe a PER with Wafa Assurance, AXA Maroc, Atlanta, RMA or other licensed operator.

4. Family charges revised upward

IR reductions for family charges remain at 30 MAD/month per dependent (no nominal change, BUT the cap has been raised from 6 to 8 persons maximum). For large families (3+ children + non-working spouse + dependent parents), this is additional potential IR reduction of up to 720 MAD/year.

5. New mandatory e-filing for > 50,000 MAD/year

All taxpayers whose annual taxable income exceeds 50,000 MAD must now mandatorily e-file via the tax.gov.ma portal. This obligation extends to retirees, MRE declaring their foreign pension, and self-employed. Paper filing remains possible only for taxpayers under 50,000 MAD annual income and persons over 70 years old.

What to do concretely?

Three priority actions: (1) verify your employer integrated the new scale into payroll from January 2026 — if delayed, request retroactive regularization with refund. (2) consider PER subscription to take advantage of the new 50,000 MAD/year deductible ceiling if in high bracket. (3) if income > 50,000 MAD/year, create your tax.gov.ma account before the next March 2027 declaration.

Article based on official public data + wafir.ma expert sources. All cited statistics are verifiable with the mentioned organizations.

Tags

#Finance Law 2026#IR#Taxation#Reform
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