After corporate tax (IS) and value added tax (VAT), the government is now tackling income tax (IR) reform. As expected, the 2025 finance bill (PLF) brings a major modification to the scale for calculating this tax. Here is the new tax scale proposed by the government in the 2025 budget.
– The income bracket up to 40,000 dirhams is exempt from tax.
– A rate of 10% is applied to the income bracket ranging from 40,001 to 60,000 dirhams.
– A rate of 20% is applied to the income bracket ranging from 60,001 to 80,000 dirhams.
– A rate of 30% is applied to the income bracket ranging from 80,001 to 100,000 dirhams.
– A rate of 34% is applied to the income bracket ranging from 100,001 to 180,000 dirhams.
– A rate of 37% is applied to the surplus.
The increase in the first tranche of the scale relating to exempt net income from 30,000 dirhams to 40,000 dirhams will make it possible to exempt all salary income below 6,000 dirhams per month. Likewise, the revision of the other brackets of the scale will have the effect of widening and reducing their tax rates, resulting in a reduction of these rates of up to 50%.
Before this reform, the IR scale was also made up of six brackets, but with different thresholds and rates:
– The income bracket up to 30,000 dirhams is exempt.
– A rate of 10% is applied to the income bracket ranging from 30,001 to 50,000 dirhams.
– A rate of 20% is applied to the income bracket ranging from 50,001 to 60,000 dirhams.
– A rate of 30% is applied to the income bracket ranging from 60,001 to 80,000 dirhams.
– A rate of 34% is applied to the income bracket ranging from 80,001 to 180,000 dirhams.
– A rate of 38% is applied to the surplus.
