Income tax reform: what the 2027 Finance Bill changes for employers and employees

Mohamed Hamdache sets out what the 2027 Finance Bill changes for employers, employees and individual taxpayers.

The new scale would exempt income of up to MAD 60,000 a year from income tax as of 2027. According to his simulations, the saving would be around MAD 4,000 a year at MAD 80,000 of net taxable income, and MAD 6,000 from MAD 100,000. But the MAD 35,000 cap on the professional expenses deduction stays the same: it would be reached from a gross monthly salary of MAD 6,500. Employers’ salary returns would fall under ex officio assessment, where the tax authorities could set the taxable base themselves. From 2031, flat-rate allowances paid every month without supporting expenses would become taxable salary supplements.

He also discusses the new constraints for foreign investors selling a Moroccan stake, share disposals to be declared within the month, and an ambiguity in the text that Parliament will need to settle. His advice to employers: “thinking about pay packages needs to start now.”