Tax review for auto entrepreneurs

The auto-entrepreneur is any individual who carries out, on an individual basis, an industrial, commercial or craft activity or provides services whose annual sales do not exceed :

a) 500,000.00 dirhams for commercial, industrial and craft activities
b) MAD 200,000.00 for services.

In 2015, the status of auto-entrepreneur was introduced by Dahir n°1-15-06 of February 19, 2015 promulgating law n° 114-13.

Tax review for auto entrepreneurs

The scheme offers considerable advantages in terms of simplified administrative procedures, streamlined accounting and taxation, and flexibility in terms of facilitating the integration of new entrepreneurs.

But over the years, the government has identified fraudulent practices and loopholes that run counter to the initial purpose of the auto-entrepreneur scheme, mainly to circumvent the salaried workforce and its charges.

To deal with tax invasions, measures have been introduced in the PLF 2023:

Income tax, which used to be 0.5% for industrial companies and 1% for service companies, will now be 30% on annual sales to a single customer in excess of 50,000 dirhams. The tax will be deducted at source by the aforementioned customer, at a final rate of 30%.A measure announced by the Minister of Economy and Finance, Nadia Fettah Alaoui.

If you would like further information on the tax review of the auto entrepreneur under the 2023 Finance Bill, our legal and tax team is at your disposal.

Faithfully yours,

Ilham Taha-Bouamri
Chartered accountant and tax specialist