INCOME TAX
Pension from a foreign source
Allowance, reduction and conditions
Moroccans living abroad (MREs) who receive a pension from a foreign source and have chosen to settle permanently in Morocco may be eligible for a tax reduction on their pensions and annuities. This requires the pension to be transferred permanently to Morocco in non-convertible dirhams. It is also necessary to submit a tax return (see ‘Documents to be provided’) detailing total income for the previous year and to pay the tax electronically before 1 March each year.
The deductions granted correspond to:
- A flat-rate allowance of 70 per cent on gross taxable amounts not exceeding 168,000 dirhams per year, with a rate of 40 per cent applied to the excess;
- An 80 per cent reduction in the amount of tax due on the transferred pension.
- A certificate of pension payments issued by the pension provider or any other document serving as such;
- A certificate stating the amount in foreign currency received on behalf of the pensioner and the equivalent value in dirhams on the date of the transfer, issued by the credit institution or by any other body involved in the payment of pensions.
