Morocco–Feb 28 eFiling & ePayment Income Tax Deadlines | KPMG | GLOBAL

Morocco – February 28 E-Filing and E-Payment Deadlines for Income Tax

Morocco–Feb 28 eFiling & ePayment Income Tax Deadlines

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.

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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:

  • Covered individuals must now e-file their tax returns using the Moroccan tax authorities’ e-filing system “Téléservices SIMPL”1.
  • The income tax due must now be paid online by February 28, 2018.

There are no extensions for the February 28 deadline.

WHY THIS MATTERS

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.

More Details

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  

  • The filing deadline for the annual income tax return has not been changed (i.e., February 28), but the paper filing is no longer permitted.
  • The payment of the tax due must be remitted online.
  • The tax payment deadline has been advanced as the tax due is to be paid upon the tax return filing.  Under prior rules, the income tax was assessed by the Moroccan tax authorities and individuals had to pay the income tax within two months from the tax bill’s issue date which they receive by regular mail.

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.  

KPMG NOTE

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.

FOOTNOTES

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 Border: Morocco,” a publication of KPMG International.

The information contained in this newsletter was submitted by the KPMG International member firm in Morocco.

© 2018 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Flash Alert is an Global Mobility Services publication of KPMG LLPs Washington National Tax practice. The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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