Tax Example: Rent

April 26, 2016

Non-resident couple's joint income1      
Monthly Rental Income2 1,500 6,000 12,00
Annual Rental Income 18,000 72,000 144,000
Less: Expenses3 40% 7,200 28,800 57,600
=Taxable Income 10,800 43,200 86,400
Income Tax Rates4
Up to MAD30,000 nil - - -
MAD30,000 - MAD50,000 10% 203 203 203
MAD50,000 - MAD60,000 20% 203 203 203
MAD60,000 - MAD80,000 30% 609 609 609
MAD80,000 - MAD180,000 34% 911 3,452 3,452
Over MAD180,000 38% - 9,472 25,888
Annual Income Tax Due 1,926 13,939 30,355
Tax Due as % of Gross Income 10.70% 19.36% 21.08%
Thanks to:
BDO Morocco (Jiwar)

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 April 26, 2016.

Notes


1 The property is jointly owned by husband and wife.

2 Exchange rate used: 1.00 USD = 9.85 MAD

3 A standard deduction of 40% is allowed when calculating taxable income to account for income-generating expenses.

4 Rental income earned by nonresident individuals is taxed at progressive rates.

INCOME TAX

TAXABLE INCOME, MAD (US$)
TAX RATE
Up to 30,000 (US$3,046)
0%
30,000 - 50,000 (US$5,650) 10% on band over US$3,046
50,000 - 60,000 (US$6,091) 20% on band over US$5,076
60,000 - 80,000 (US$8,122) 30% on band over US$6,091
80,000 - 180,000 (US$18,274) 34% on band over US$8,122
Over 180,000 (US$18,274) 38% on all income over US$18,274
Source: Global Property Guide

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