Morocco: a new tax on rentals that hurts

The recent establishment of a 20 % tax on the rental income of landlords in Morocco aimed at simplifying taxation and expanding the tax base will produce a negative impact on real estate, more precisely on the actors of the sector.

“Currently, individuals holding property income whose gross amount is equal to or greater than 120,000 dirhams are subject to income tax at the rate of the progressive scale, within the framework of their declaration of overall income at the end of the year After imputation, if necessary, of the reservoir operated during the year concerned at the non -release rate of 15 %. In order to ensure tax equity and to simplify this tax mode, in particular for employees and retirees, it is proposed to allow the option to the taxation of these revenues at the release rate of 20 %, with the possibility of Benefit from the exemption from the annual declaration of the overall income for said income, ”it is in the PLF note. But this tax measure which has entered into force in this month of January will not be without consequences on the activity of landlords.