Income tax on rent, worked example, in Morocco
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% | |
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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 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$) | |
| Up to 30,000 (US$3,046) | |
| 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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