Allowances exempt from tax in Morocco are allowances intended to cover the costs incurred in the exercise of the function, insofar as they are justified.
Exempt allowances are widely used by companies to optimize the tax and social charges related to the salaries of their staff.
In order to simplify and clarify the rules governing allowances eligible for exemption, the General Tax Department (DGI) has established a clear and precise reference system which offers companies better visibility on the tax treatment of exemptions from allowances. (Download the DGI memo)
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List of allowances accepted as tax exemption in accordance with article 57 of the CGI.
Transport and travel allowance
| Nature of the indemnity | Definition | Ceiling admitted | Conditions and/or nature justification |
Travel allowance and travel expenses | It is granted to employees whose working conditions require travel from their home to a place of work other than the usual place, located outside the urban perimeter and this in reimbursement of food, accommodation and transport costs that they support. | a) Granted on the basis of supporting documents: The total amount of fully accepted expenses (travel tickets, restaurant and hotel expense reports, etc.).
b) Granted on a flat-rate basis for one-off business trips : The trip must be justified by written order issued to the person concerned or any document in lieu mentioning the nature of the mission and the purpose of the trip.
The method of valuation by heading of the allowances referred to in a) or b) above is carried out as follows: · For transportation costs : they are calculated by reference to the mileage allowance, when the employee uses his own means of transport and to the public transport rate in the opposite case; · For food costs : they are assessed on the basis of ten (10) times the guaranteed minimum hourly wage per day; · For accommodation costs : they are calculated on the basis of thirty (30) times the guaranteed minimum hourly wage per day.
c) Granted on a flat-rate basis for regular business trips: Exemption is allowed within the limit of 100% of the basic salary with a ceiling of 5 Dirhams per month. The ceiling referred to opposite includes accommodation, food and transport costs. | Payment of mission allowances and reimbursement of related expenses are made on the basis of a statement justifying expenses accompanied by the necessary supporting documents.
The trip must be justified by the written order issued to the person concerned or any document in lieu mentioning the nature of the mission and by the purpose of the trip (visit of a customer, a supplier, construction site, fairs , market prospecting, on-site installation and maintenance services, etc.). · Accommodation costs are not taken into consideration when the employee is at a distance allowing him to return to his usual place of residence located less than 50 kilometers from the place of the mission. · The distance traveled is estimated in relation to the places which have been the subject of a visit duly justified by the written order issued to the person concerned and by the purpose of the trip. · Reimbursement of these costs is not allowed when the employee uses a company car.
· Regularity in granting the indemnity; · The profession exercised requires continuous and regular travel (agent or sales representative, VRP, itinerant agents, etc.). |
Mileage allowance | It is granted to the employee using his own vehicle for the performance of his professional duties.
| This compensation is fixed at 3 Dirhams per kilometer and this ue is the fiscal horsepower of the vehicle. | · The employee uses his own vehicle; · The trips are made within the professional framework and from the address of the company; · Have all the supporting documents related to business trips (date, place, route, number of kilometers and purpose of the trip).
. Mileage allowances are intended to cover the following costs: fuel, vehicle maintenance, vehicle depreciation, insurance and taxes. |
Travel allowance from home to work | It is granted to the employee traveling from his home to his usual place of work. | · 500 dirhams per month, in the urban perimeter of cities; · 750 dirhams per month, when the workplace is located outside the urban perimeter of the city. | Excluded from the benefit of the exemption are allowances granted to employees:
whose travel is provided by the employer, · whose habitual residence is located at the same place as the place of work; · who have a company car. |
Company or service car
| The company vehicle is made available to senior executives for all their travels. The service vehicle is accessible to the employee only for his business trips and must in principle be returned at the end of the working day.. | Expenses borne by the employer for company or company cars do not constitute a taxable benefit in the hands of the employee. | . The exemption is dependent on the professional qualification and status of the beneficiaries: · Executives managers : · Itinerant staff : Commercial agent, VRP, itinerant agent. |
Tour bonus | It is granted to Salespeople and agents to make rounds to customers or suppliers throughout the day. | The exemption is capped at 1 dirhams/month. | The beneficiaries must have the status of commercial or itinerant agents called upon to travel during the day to customers and suppliers. |
Allowances specific to certain jobs
| Nature of the indemnity | Ceiling admitted | Conditions and/or nature justification |
Cash allowance (*) | The amount of the indemnity accepted as exemption must not exceed 190 Dirhams per month. | This compensation is granted to workers who handle funds and who have a pecuniary responsibility. |
Representation allowance (*) | The exemption is capped at 10% of base salary. | Beneficiaries must have the status of: Chairman and Managing Director, Managing Director, Director of a department (Commercial Director, Financial Director, Administrative Director, Technical Director, Human Resources Director, Director of a branch, etc.) as well as the salaried manager ensuring an effective function of employee and having in the company of the powers of direction and management. |
Tooling premium (*) | The exemption is capped at 100 Dirhams per month. | Exemption is granted to the tool premium paid to workers who own their tools. |
Soiling bonus (Blue or clothing wear bonus) (*) | The exemption is capped at 210 Dirhams per month. | The premium for soiling blueprints or wearing out clothes is allocated to workers who indiscriminately carry out particularly dirty work. |
Milk allowance (*) | The amount of indemnity accepted as exemption is capped at 150 Dirhams per month.
| The allowance in question is exempt if granted to workers handling toxic products. |
(*) The amount of these exempt allowances is indexed to the hourly SMIG
Food allowances
| Nature of the indemnity | Ceiling admitted | Conditions and/or nature justification |
Basket or snack bonus
| The exemption is capped at twice the hourly minimum wage.
| It should not be combined with vouchers representing food or feeding expenses.
|
Vouchers representing food or food expenses issued by employers to their employees
| The indemnity exempted is limited to: · 20 Dirhams per employee and per working day; · And 20% the beneficiary's gross taxable salary.
| ·The amount of these costs may under no circumstances exceed 20% of the employee's gross taxable salary. ·The exemption cannot be combined with the food allowances granted to employees working on construction sites far from their place of residence. |
Food given to marine officers
| The exemption is granted within the limit of 60% of its amount.
| Officers and sailors, listed on the crew list, who cannot be fed on board the ship.
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Social allowance
| Nature of the indemnity | Ceiling admitted | Conditions and/or nature justification |
Reduction of interest on loans granted to employees | The exemption is granted under the exemption from interest borne by the employer on: · loans granted to personnel for the acquisition or construction of social housing intended for the main residence; · social loans granted to personnel within the limit of 50 Dirhams. With regard to loans granted for the acquisition or construction of other types of housing intended for main residence, the interest charged to the employee must not be less than that borne by the employer.
| Favorable treatment concerns loans granted by employers to their staff for the acquisition or construction of social housing for the main residence. |
Medical help | Exempt. | Internal assistance (work accidents, medical expenses and hospitalization) ·Medical expenses must be duly justified by supporting invoices.
|
Social rewards related to a family event
| The indemnity is exempt within the limit of 2 dirhams per year and covers all events taken together during the same year.
| Birth bonuses, marriage, circumcision, death of an ascendant or descendant, back-to-school allowance, purchase of toys for the Achoura festival, purchase of sheep for AID AL ADHA
|
Mecca Travel Bonus for Pilgrimage | The compensation is exempt within the limit of the price of the return air ticket, increased by the amount of the allocation authorized by the exchange office.
| ·the beneficiary must be an employee of the company; ·the amount admitted as an exemption is granted only once to the employee. |
Allowance paid to a child of a company worker | Exemption is allowed within the limit of twice the SMIG. | During the summer holidays. |
Various allowances
| Nature of the indemnity | Ceiling admitted | Conditions and/or nature justification |
Moving allowance following transfer
| · Mutation in Morocco : 10 Dirhams by the number of kilometers separating the employee's initial place of residence and the latter's place of reassignment. · Transfer abroad : presentation of proof of expenses paid. | The transfer must be decided on the initiative of the employer. |
Severance pay | This compensation is exempt within the limits set by the General Tax Code. ·For severance pay : within the limit of the scale provided for by the provisions of article 53 of the Labor Code; ·For voluntary severance pay : Exemption within the limit of the severance pay which is calculated in accordance with the scale provided for in article 53 of the Labor Code; · For compensation for damages granted by the courts and the severance pay granted within the framework of the conciliation procedure, within the limit provided for in article 41 of the Labor Code and which corresponds to one and a half months' salary per year within the limit of 36 months. | The following are not considered as severance pay awarded as compensation for damage: · The indemnity received by an employee ceasing his duties at the end of a limited-term contract or at the time of retirement; The notice wage paid by the employer during the normal notice period generally stipulated in the contract; · Any amount allocated to the worker, when the dismissal is justified for any reason whatsoever (serious misconduct by the employee, unjustified absence, refusal to change jobs for similar work, etc.); · The early retirement indemnity.
|
Telephone set expenses | Exempt | Royalties must be made out to the company name. |
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