Rent

If you live in Morocco, and if you possess an old age pension of a foreign source, you can benefit from a reduction equal to 80 % of the amount of the tax due in conformance with your pension.
The obtaining of this reduction is subordinated to the transfer of your pension with the definitive title in an account in dirhams (which cannot be converted).

1-CONDITIONS

To benefit from this reduction you have to put together with your annual declaration of income: a certificate of payment of the pensions established by the payer of an allowance (the body which pays you your pension);
A certificate delivered by a banking institution or from credit and indicating the amount received in currencies and exchange value in dirhams

2-MODE OF DETERMINATION OF THE TAX:

You have to proceed in a following way:
For the sums that are not transferred, you have to carry out the conversion by keeping an average exchange rate fixed by the Direction of Taxes;
For the transferred sums, keep the exchange value in dirhams during transfers.
Apply an allowance of 40 % to the raw pension.

EXAMPLE:
Your raw pension provided by the French perceived in 2000 and declared in 2001, amounts to 60 000 Francs.
First option: if you transfer the all of your pension, you would benefit from a reduction of 80 % of the due tax.
Amount of the pension transferred in dirhams = 89 376,60 dh taxable Net income: 89 376, 60 - (89 376, 60 x 40 %) = 53 625 dh
Tax on your entire pension*: (53 625x 35 %) - 9 560 = 9208, 80 dh
80 % Reduction: 9 208, 80 % = 7 367, 10 dh
Actual owed Tax: 9 208, 80 - 7 367, 10 = on 1841, 70 dh
Taxable net income: 89 376, 60 - (89 376, 60 x 40 %) = 53 625 dh

Second option: if you transfer only part of your pension, which is 40000 F.F corresponding to 59500 dh, you have to proceed in the following way:
Convert the part of the pension which is not transferred on the basis of(?) the average exchange rate held by the administration:
1 Franc French = 1,5 Dirhams
20 000 x 1, 50 = 30 000 dh
Calculate the taxable raw pension: 59 500 + 30 000 = 89 500 dh
Calculate the taxable net pension: 89 500 - (89 500 x 40 %) = 53 700 dh
Calculate the tax on the totality *: (53 700 x 35 %) - 9 560 = 9 235 dh

Tax reduction corresponding to the transferred sum:
( 9235 x 59500 / 89 500) 80 % = 4911, 6 dh actual owed Tax: 9 235 - 4 911, 60 = 4 323, 40 dh

Third option: if you do not transfer your pension:


Your pension in Dirhams will rise as a result by: 60 000 x 1.50 = 90 000 dh

b - Your taxable net pension is: 90 000 - (90 000 x 40) = 54 000 dh

c - Calculate your tax: (54 000 dh x 35 %) - 9 560 = 9 340 dh

TABLE OF THE INCOME TAX: method of fast calculation

CLEAR-CUT
0 to 20.000 DHS = non imposable
20.000 to 24.000 DHS = taxation rate 13%.Summons to deduct = 2600 DHS
24.001 à 36.000 DHS = taxation rate 21%.Summons to deduct = 4520 DHS
36.001 à 60.000 DHS = taxation rate 35%.Summons to deduct = 9560 DHS
Plus de 60.001 DHS = taxation rate 44%.Summons to deduct = 14960 DHS

N.B. :
The transfer can be made by:
- Postal order (heels of the original mandates) or
- Credit transfer

You have until 31st of March of every year to declare your pensions (and any other incomes) perceived in conformance with the preceding year.
To determine your tax, use the method of fast calculation given by the table above.

For more precision, contact the manager’s office:
D.R of Fès : Abdelaziz JABRANE 00212 55 93 20 43
D.R of d’Oujda : Abdelkader CHOUGRANI 00212 56 68 28 42 / 68 41 85

DIRECTION OF THE TAXES
Service of the Information and the Public relations:
Haj Ahmed Charkaoui Agdal street - RABAT
Phone : 00 212 37 77 57 72
http:// www.finances.gov.ma