Morocco: Worked Example of Tax on Rent
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Tax Example: Rent
| Non-resident couple's joint monthly rental income1 | US$1,500 | US$6,000 | US$12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Plus: Insurance Premiums2 | 1,000 | |||
| Less: Trustee Expenses3 | (500) | |||
| = Gross Taxable Income | US$18,500 | US$ | US$ | |
| Less: Standard Costs4 | 7,400 | |||
| = Taxable Income | US$11,100 | US$ | US$ | |
| Income Tax Rates5 | ||||
| Up to MAD24,000 | nil | - | - | - |
| MAD24,000 – MAD30,000 | 15% | (480) | - | - |
| MAD30,000 – MAD45,000 | 25% | (400) | - | - |
| MAD45,000 – MAD60,000 | 35% | (600) | - | - |
| MAD60,000 – MAD120,000 | 40% | (1,240) | - | - |
| Over MAD120,000 | 42% | - | - | - |
| Annual Income Tax Due | US$2,462 | US$ | US$ | |
| Other | ||||
| Tax Deduction6 | (144) | - | - | |
| Annual Tax Due | US$2,318 | US$ | US$ | |
| Tax Due as % of Gross Income | 12.88% | % | % | |
Thanks to: |
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on September 19, 2008.
Notes
1 The property is jointly owned by husband and wife, but then taxed separately (50% upon each partner). Exchange rate used: 1 USD = 7.50 MAD.
2 Insurance premiums of any class (fire insurance) paid by the tenant are included in the owner/landlord’s gross taxable income.
3 Trustee expenses as a cost paid by the owner from the rent as stipulated in the contract are deductible from the gross rent.
4 A 40% standard deduction from the gross taxable income is allotted for income-generating expenses.
5 Rental income is taxed at progressive rates.
6 Deduction for dependants, the upper limit amount is MAD1,080 (US$144).
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