From The Rio Times · Samuel Ncube · · 1m 20s
Morocco Plans Income Tax Cut for Workers
Morocco's government to cut income tax for salaried workers starting 2027.
In brief
Morocco's government to cut income tax for salaried workers starting 2027. Morocco's draft 2027 budget may raise tax-free income threshold to 60,000 dirhams (US$6,100) and increase professional expense deductions for workers. Originally reported by The Rio Times.
Morocco's Cabinet Adopts 2027 Budget
Morocco's cabinet, led by Prime Minister Fatima Ezzahra El Mansouri, adopted the draft 2027 budget law on Tuesday 20 October 2026.
Tax Changes Reported by Le360
Le360 reports a tax-free annual income threshold rising from 40,000 dirhams to 60,000 dirhams (about US$6,100) starting January 2027.
Professional Expense Deductions Increase
Le360 reports the share of pay workers may deduct as professional expenses growing from 25% to 45% starting January 2027.
Tax Brackets Reduce to Three
Le360 reports the number of tax brackets falling from six to three with the top rate dropping from 37% to 30% by 2031.
Estimated Cost of Reform
Le360 estimates the reform could cost about 20 billion dirhams (about US$2 billion) over five years, or roughly 4 billion dirhams (about US$410 million) annually.
Impact on Workers
Le360 says up to 87% of private-sector employees could end up paying no income tax starting January 2027.
What It Means for American Firms
Morocco is a US free-trade partner, so lower tax burdens could ease wage pressure for American firms employing Moroccan staff.
The big picture
Morocco's draft 2027 budget may raise tax-free income threshold to 60,000 dirhams (US$6,100) and increase professional expense deductions for workers.
