The purpose of this legal note is to provide an update on benefits in kind in Morocco.
In fact, they are one of the prime targets of tax inspectors; hence the need to pay particular attention to the subject of benefits in kind in Morocco.
Benefits in kind are goods and services provided to employees/company managers to help them with expenses outside the workplace.
In other words, the benefit in kind can be defined as the "part of a remuneration that does not take the form of money"..
These benefits in kind can take many different forms, but always appear on the payslip as long as the employee also makes private use of these items.
In the same way as bonuses and allowances, benefits in kind are added to the remuneration paid to staff and are deductible as long as they are not deemed abnormally exaggerated in relation to the work performed.
Benefits in kind include the following:
1- housing owned or rented by the employer and assigned free of charge to an employee;
2- water, electricity, heating and telephone expenses;
3- domestic service expenses (driver, gardener, cook, janitor, maid, nurse, etc.) allocated to the personal services of an employee;
4- expenses relating to company cars permanently assigned to an employee ;
5- food expenses ;
6- expenditure on clothing, with the exception of work clothes required for the exercise of the profession (blouses, uniforms required by the profession, etc.).
To constitute remuneration, the benefit in kind must :
1- be granted free of charge. If a deduction is made from the employee's salary or if the employee is required to pay a usage fee, there is no benefit unless the amount of the deduction or payment is less than the value of the item provided;
2- concern an object or service for the employee's personal use. The expense covered by the company must be the employee's normal responsibility. It may be private (accommodation, food, etc.) or professional (car, etc.).
As regards the tax treatment of these benefits, please find attached a table summarizing the various useful information on this subject.
DGI April 2011 P506 -509
We will be happy to provide you with further information.
Faithfully yours,
Ilham Taha-Bouamri
Chartered accountant and tax specialist
