In Morocco, the auto-entrepreneur tax regime is a legal and tax status that encourages formal activities, develops the entrepreneurial spirit and facilitates access to the job market for young people through self-employment.
Who can become an auto-entrepreneur?
Any individual engaged in a professional activity can become an auto-entrepreneur. Likewise, anyone who is a partner or shareholder in a company but does not carry out any business activity can also become an auto-entrepreneur.
Which taxpayers are excluded from the auto-entrepreneur scheme?
Taxpayers excluded from the auto-entrepreneur scheme include :
- architects
- insurers
- lawyers
- money changers
- surgeons
- dental surgeons
- merchandise commissioners
- auditors
- export merchants
- importing merchants
- quantity surveyors
- doctors
- hoteliers
- bailiffs
- printers
- booksellers
- real estate developers
- airplane and helicopter rental companies
- real estate agents
- real estate dealers
- goldsmiths, jewelers and jewelry retailers
- goldsmiths, jewelers and jewelry wholesalers
- accountants
- tobacco retailers
- publishers
- chartered accountants
- driving school operators
- cinema operators
- clinic operators
- medical analysis laboratory operators
- private school operators
- surveyors
- notaries
- party and reception service providers
- pharmacists
- opticians and spectacle makers
- radiologists
- engineering consultants
- customs forwarders
- topographers
- veterinarians
What are the conditions for auto-entrepreneur status?
The option to use the auto-entrepreneur tax system is subject to the following conditions: annual sales must not exceed the following limits: DH500,000 for commercial, industrial and craft activities, and DH200,000 for service providers. The taxpayer is also required to join the social security scheme provided for under current legislation.
What are the tax advantages for auto-entrepreneurs?
Auto-entrepreneurs benefit from tax advantages such as an advantageous rate of income tax, and exemption from value-added tax and business tax. The auto-entrepreneur benefits from social security coverage.
Individuals operating as auto-entrepreneurs are subject to income tax at one of the following rates:
0.5% on sales up to DH500,000 for commercial, industrial and craft activities;
1% on the amount not exceeding DH200,000 for services.
However, when the annual turnover for services provided on behalf of a single customer exceeds eighty thousand (80,000) dirhams, the surplus is subject to income tax, by means of a withholding tax levied by the said customer at the rate stipulated in article 73 (II-G-8°) of the General Tax Code.
These rates are in full discharge of income tax.
How are auto-entrepreneurs identified by the tax authorities?
Once registered on the National Register of Auto-entrepreneurs (RNAE), auto-entrepreneurs are identified by their Common Company Identifier (ICE), Tax Identifier and Business Tax Identification Number.
What are the auto-entrepreneur’s reporting obligations?
Auto-entrepreneurs are required to declare their sales quarterly on or in accordance with the model form drawn up by Barid Al-Maghrib. They must also declare the cessation, transfer or transformation of their business.
How do I terminate the auto-entrepreneur scheme?
The auto-entrepreneur can terminate the scheme by cancelling his or her registration with the RNAE, in the event of cessation of activity, partial or total transfer of the business, failure to declare sales or declaration of zero sales from the 2nd year following registration, following conversion to another status or scheme, failure to pay social security and tax contributions for one year, or declaration of sales exceeding the set threshold for two consecutive years.
Which organization is authorized to issue tax certificates?
The body authorized to issue tax certificates is Barid Al-Maghrib, which in particular issues the certificate of tax regularity required for bidding on public contracts.