This report covers changes in the recent Moroccan Finance Law for 2018 that contained changes related to e-filing and payment of individual income taxes by the February 28 deadline.
February 28, 2018, is the deadline in Morocco for filing annual income tax returns for the 2017 tax year. The Finance Law for 2018 introduced the below changes:
There are no extensions for the February 28 deadline.
Covered individuals are required to file their annual income tax returns and pay income tax at the same time.
Automatic penalties will arise for filings and/or payments not made by the deadline.
It can take several weeks to prepare the returns and calculate the tax due. Therefore, taxpayers and/or their tax service providers should act without delay to make sure they meet the deadlines. Further, if tax return and payment arrangements have not already been registered online, the process can take even longer.
Employers of globally mobile employees will need to be aware of the changes. Tax payment policies need to take into consideration the payment deadline.
The Finance Law for 2018 extended e-filing and e-payment to individuals with non-business income such as employment income as from January 1, 2018.2
Therefore, tax return and income tax for income earned in 2017 must be filed and paid online by February 28, 2018.3
The tax due will now be paid by individuals based on the income reported on the tax returns and online. Tax bills will not be sent by the Moroccan tax authorities, as had previously been the case.
From a global mobility standpoint, employers and their tax service providers should now carefully assess how e-filing and e-paying will impact their operations and procedures.
If employers or employees have any concerns about what they need to do, they should consult as soon as possible with their qualified tax professional.
1 For related information, see the Web site for the Directorate-General of Taxes (Direction Générale des Impôts).
2 For the Finance Law and related documentation (in French and Arabic) on the Ministry of the Economy and Finance site, click here.
3 For further details of the tax compliance regime in Morocco prior to the Finance Law for 2018, see “Thinking Beyond Borders: Morocco,” a publication of KPMG International.
The information contained in this newsletter was submitted by the KPMG International member firm in Morocco.
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