In brief: The auto-entrepreneur status in Morocco, governed by Law 114-13 and the General Tax Code (CGI), offers simplified taxation at 0.5%–1% of turnover for small businesses below MAD 500,000 (commercial) or MAD 200,000 (services). Registration is done online via the DGI portal.
Becoming an Auto Entrepreneur in Morocco
Are you considering starting your own business in Morocco? If so, you may want to explore different options to create a company in Morocco.
The auto entrepreneur status might be the perfect fit for you, with simplified accounting rules. This guide provides a comprehensive overview of what it means to be an auto entrepreneur in Morocco, covering everything from legal requirements to the benefits and challenges you might face. This status is open to all residents, whether national or foreign. Whether you are local or an expat, this guide is your first step towards understanding and leveraging the opportunities associated with this status in Morocco.
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What Is an Auto Entrepreneur?
The concept of auto entrepreneur in Morocco refers to a simplified business status designed for individuals looking to operate a small business with minimal bureaucratic hurdles.
It is an ideal choice for freelancers, sole traders, and those starting out in the entrepreneurial world. This status offers a range of benefits, including simplified tax procedures and social security contributions, making it an attractive option for many aspiring entrepreneurs.
It is a special tax regime for natural persons. Indeed, any natural person may register as an auto entrepreneur provided that annual turnover remains below:
- 500,000 MAD for commercial, industrial, and artisanal activities
- 200,000 MAD for service provision
Note: Since the 2023 Finance Act, the amount that holders of this status may invoice to a single client has been limited to 80,000 MAD. Beyond this limit, a 30% withholding tax must be applied by the client.
To register for the regime: https://rn.ae.gov.ma/registration
Why Choose the Auto Entrepreneur Status?
Choosing to become an auto entrepreneur in Morocco offers several advantages. These include:
- Simplified Taxation: A simplified tax regime, making financial management more straightforward.
- Ease of Setup: The registration process is streamlined and user-friendly.
- Flexibility: This status offers the flexibility to work independently, perfect for those looking to balance work with other commitments.
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Legal Framework
The auto entrepreneur regime is governed by Law No. 114-13, enacted in 2015. The Moroccan authorities aim to make it easier for small project holders to establish a legal framework for their activities.
This regime is also provided for in the General Tax Code. Indeed, Article 42-bis of the CGI stipulates that:
Taxpayers may pay a reduced Income Tax based on annual turnover collected.
Furthermore, to opt for this regime, the annual turnover collected must not exceed:
- Commercial, industrial, and artisanal activities: a maximum of 500,000 dirhams per year
- Service providers: a maximum of 200,000 dirhams per year.
Additionally, the taxpayer must join the social security regime provided for by the legislation in force.
Finally, this regime remains valid as long as the turnover does not exceed the limit for two consecutive years.
Taxation of the Auto Entrepreneur
Taxpayers under this regime are exempt from the following taxes:
- Corporate Income Tax: IS exemption
- Value Added Tax: VAT exemption
In terms of Income Tax, they benefit from a special regime with reduced rates as follows:
- 0.5% of turnover collected for commercial, industrial, and artisanal activities;
- 1% of turnover collected for service provision activities.
Furthermore, note that this regime excludes certain professions, activities, or services determined by regulation. These activities include, for example:
Architects - Insurers - Lawyers - Money changers - Surgeons
View the complete list of excluded activities.
What Are the Advantages of This Regime?
The regime primarily targets small individual professionals. Indeed, its purpose is to enable informal activities to organize themselves and benefit from a legal status.
This regime offers, in particular, the following advantages:
- Simple registration: the taxpayer can create this status with just a few formalities
- Single point of contact: the auto-entrepreneur benefits from one dedicated contact
- No domiciliation required: the law does not require legal domiciliation
- No minimum tax: the auto-entrepreneur does not pay tax if they do not generate any turnover
- Deductible invoices: the auto-entrepreneur can invoice services to partners and their invoices are deductible, allowing access to organized corporate clients.
The three main disadvantages are:
- No employees: the status does not allow hiring employees
- Turnover cap: the auto-entrepreneur cannot exceed the revenue thresholds
- Excluded activities: the law excludes certain professions from this regime
If this regime is not suitable, a company must be created. How to create a company?
Questions and Answers About the Auto Entrepreneur Regime
Who Can Be an Auto Entrepreneur?
This status is available to Moroccan nationals and foreigners residing legally in Morocco. However, this status cannot justify an extended stay for a foreigner. Indeed, residency must be legal prior to the creation of the status.
Can an Auto Entrepreneur Issue Invoices?
Yes, a specific invoice template is provided for this type of activity. The invoice must indicate, in particular, the identification number in the AE register (RNAE).
How to Create the Status?
Registration is done in three simple steps:
- Register on the portal: https://rn.ae.gov.ma/registration. Then, print the form and sign it;
- Open a bank account at one of the branches of the partner banks
- Obtain the AE card
It should be noted that the auto entrepreneur may combine several activities. However, they may only have one auto enterprise. The limit applies to total turnover.
This article is up to date with the provisions of the 2024 Finance Act.
Frequently Asked Questions
What is the revenue threshold for auto-entrepreneurs in Morocco?
The annual revenue thresholds are 500,000 MAD for commercial, industrial, and artisanal activities, and 200,000 MAD for service activities. Exceeding these thresholds for two consecutive years disqualifies the auto-entrepreneur from this status.
What taxes does an auto-entrepreneur pay in Morocco?
Auto-entrepreneurs pay a single tax based on turnover: 1% for commercial and industrial activities and 2% for service activities. This simplified tax replaces corporate income tax, VAT, and professional tax, making it one of the most favorable tax regimes in Morocco.
Can a foreigner register as an auto-entrepreneur in Morocco?
Yes, foreigners can register as auto-entrepreneurs in Morocco provided they hold a valid residence card. The same administrative procedures and tax rates apply regardless of nationality, though certain activities may be restricted or excluded from this status.
Can a Foreigner Become an Auto Entrepreneur in Morocco?
Foreigners legally residing in Morocco can indeed register as auto-entrepreneurs, provided they hold a valid residence card prior to registration. The same tax rates apply regardless of nationality: 1% on turnover for commercial and industrial activities, and 2% for service activities. However, it is important to note that this status cannot be used to justify or obtain residency in Morocco, and certain activities may be restricted or excluded from the auto-entrepreneur regime.
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