Withholding tax on fees
Withholding tax on fees is early tax collection mechanism. Client (company) withholds portion of fees and pays directly to State. Beneficiary then deducts this withholding from final IR or IS.
Who is concerned
Any company paying fees to non-salaried professional (consultant, lawyer, doctor, designer, architect) or to foreign provider not established in Morocco.
Deadlines
Monthly payment before 20th of month following payment. Annual recap declaration (form 7210) before April 1st.
How it works
Client verifies if provider subject to withholding (professions listed by decree). Applies 10% on excl.-tax fee amount, pays provider 90% of excl.-tax invoice + VAT, and remits 10% to Treasury. Withholding certificate issued to provider for annual declaration.
2026 rates and scales
2026 rates: 10% on fees of resident liberal professions. 15% on remunerations paid to non-residents (except tax treaty). 20% for certain foreign technical services.
Concrete example
Audit firm pays 50,000 MAD excl. tax in fees to independent consultant. VAT 20% = 10,000 MAD. 10% withholding on 50,000 = 5,000 MAD. Actual payment to consultant: 50,000 + 10,000 − 5,000 = 55,000 MAD. Firm remits 5,000 MAD to Treasury.
Exemptions
Not applicable to salaried employees (already subject to salary withholding), auto-entrepreneurs (flat global contribution), services < 200 MAD. Total exemption for purely material services (supplies, deliveries without intellectual added value).
Declarative obligations
Client: keep withholdings register, monthly electronic filing via SIMPL, annual issuance of certificate 7210 to provider. Provider: retain certificates to attach to annual IR/IS declaration.
Penalties for non-compliance
For client who fails to withhold: 100% fine on non-executed withholding + interest. For late remittance: 10% surcharge + 5%/year interest.
Legal optimization tips
- Providers: systematically claim certificate 7210 to recover withholding at IR declaration
- Clients: automate withholding via accounting software to avoid oversights
- Negotiate fees incl. tax net (provider) to compensate withholding
- For non-residents: verify tax treaties (some allow 0% or reduced rate)
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