Agadir - Morocco’s House of Representatives Finance and Economic Development Committee has approved amendments raising the annual turnover threshold for self-employed workers serving the same client from MAD80,000 to MAD100,000. The amendments also propose reducing the withholding tax rate from 30% to 20% on amounts exceeding the threshold.
The committee approved the amendments on Wednesday, November 11, during its review of the 2027 Finance Bill, with 23 members voting in favor and 18 against. Finance Minister Fouzi Lekjaa backed the amendments on behalf of the government, which aim to ease the tax burden on self-employed workers and taxpayers under the Unified Professional Contribution (CPU) system.
Under the proposed changes, turnover generated from services provided to the same client will remain exempt from withholding tax on income up to MAD100,000 annually, compared with the current MAD80,000 threshold. The proposed reduction would also benefit taxpayers operating under the CPU system, which covers certain small businesses and independent service providers.
Lekjaa warns against misuse of self-employed status During the committee meeting, Lekjaa explained that the amendments seek to align the tax treatment of self-employed workers with changes introduced under the broader income tax reform.
He noted that the reform raised the annual income tax exemption threshold to MAD60,000, making it necessary to extend comparable tax relief to self-employed workers, whose relevant threshold previously stood at MAD80,000. However, the minister also warned against employers using self-employed status to avoid the tax and social obligations associated with formal employment.
According to Lekjaa, some employers prefer hiring workers as self-employed contractors rather than establishing regular employment relationships, allowing them to pay a 1% tax rate under the self-employed regime instead of income tax rates that can reach 20% or 25%. Lekjaa stressed that the government does not intend to restrict genuine independent activities or undermine entrepreneurship.
Instead, it seeks to prevent businesses from using the self-employed regime to circumvent their tax obligations. Lekjaa also disclosed that Morocco has approximately 430,000 businesses registered under the self-employed regime. He said the tax administration examines declarations, turnover figures, and the nature of business activities to assess whether taxpayers comply with the objectives of the regime.
