In brief: The auto-entrepreneur (AE) status in Morocco offers an ultra-simplified tax regime: an IR of 0.5% of turnover for commercial/industrial/artisanal activities and 1% of turnover for service provision (Art. 73-III of the GTC). Turnover thresholds are set at 500,000 MAD for commerce and 200,000 MAD for services. If the thresholds are exceeded for two consecutive years, the Net Real Income (NRI) regime applies from January 1 of the following year, unless the taxpayer opts for the Single Professional Contribution (CPU) or the Simplified Net Income (SNI) regime, and a return to the AE regime is no longer possible (Art. 43-4°).
The Auto-Entrepreneur Regime: Legal Framework
The auto-entrepreneur status was established to encourage the formalization of the informal economy in Morocco. Governed by Articles 42 bis, 42 ter and 73-III of the General Tax Code (GTC), this regime offers reduced taxation and simplified filing obligations.
Who Can Opt for AE Status? (Art. 42 ter)
Any individual carrying out a commercial, industrial, artisanal or service provision activity may adopt auto-entrepreneur status, subject to meeting the following conditions:
- Turnover thresholds: annual collected turnover must not exceed 500,000 MAD for commercial, industrial and artisanal activities, or 200,000 MAD for service provision.
- Social security registration: registration with the CNSS scheme is mandatory since the status reform.
- Exclusion of regulated professions: liberal professions whose list is set by regulation cannot benefit from this status (lawyers, notaries, doctors, chartered accountants, architects, etc.).
- Multiple activities: the auto-entrepreneur may carry out several activities subject to different ceilings; the option remains valid only if the collected turnover of each category stays within its own ceiling, or if total turnover does not exceed the ceiling of the main activity (Art. 43-5°).
Tax Base: Collected Turnover (Art. 42 bis)
Unlike conventional regimes (NRI, SNI) where a net profit is determined, the auto-entrepreneur’s tax base consists of the turnover actually collected during the relevant period. No deduction of expenses is allowed — no professional costs, no depreciation, and no provisions.
This simplicity is the major advantage of the status: no accounting to maintain, no balance sheet to prepare, and no tax package to file. By contrast, entrepreneurs who set up a company in Morocco take on full accounting and annual tax filings.
Applicable IR Rates (Art. 73-III)
Income tax due by the auto-entrepreneur is calculated by applying specific rates to the collected turnover:
| Type of Activity | IR Rate |
|---|---|
| Commercial, industrial and artisanal activities | 0.5% |
| Service provision | 1% |
These rates are final (in full discharge of income tax) (Art. 73, last paragraph): the turnover taxed at these rates does not enter the progressive scale. Two exceptions: (1) where turnover from services provided to the same client exceeds 80,000 MAD in the year, the surplus is subject to a final 30% withholding tax, withheld by that client if it is a legal entity or an individual taxed under the NRI or SNI regime (Art. 42 bis, 45 bis-II, 73-II-G-8° and 157-II); (2) net capital gains from the sale or withdrawal of tangible and intangible assets used in the activity are taxed under the progressive scale of Article 73-I (Art. 42 bis).
Quarterly Supplementary Duty
In addition to IR, the auto-entrepreneur is liable for a supplementary duty determined by brackets of the annual tax due (not turnover), in accordance with the table annexed to the GTC:
| Annual tax-due bracket (MAD) | Quarterly supplementary duty | Annual supplementary duty |
|---|---|---|
| Less than 500 | 300 MAD | 1,200 MAD |
| 500 to 1,000 | 390 MAD | 1,560 MAD |
| 1,001 to 2,500 | 570 MAD | 2,280 MAD |
| 2,501 to 5,000 | 720 MAD | 2,880 MAD |
| 5,001 to 10,000 | 1,050 MAD | 4,200 MAD |
| 10,001 to 25,000 | 1,500 MAD | 6,000 MAD |
| 25,001 to 50,000 | 2,250 MAD | 9,000 MAD |
| Above 50,000 | 3,600 MAD | 14,400 MAD |
This supplementary duty follows the same brackets as those applicable to the Single Professional Contribution (CPU). It is payable at the same time as the monthly or quarterly IR via the dedicated platform.
Monthly or Quarterly Filing and Payment
The auto-entrepreneur declares their collected turnover and pays their IR monthly or quarterly, depending on the option chosen, via the national auto-entrepreneur platform (ae.gov.ma) (Art. 82 bis and 173-II). Under the monthly option, filing and payment are due before the end of the month following the month of collection. The filing must be completed even in the event of zero turnover for the relevant period.
Under the quarterly option, the deadlines are as follows:
- Q1 (January-March): filing before end of April
- Q2 (April-June): filing before end of July
- Q3 (July-September): filing before end of October
- Q4 (October-December): filing before end of January of the following year
Payment is made online by bank card, transfer or through approved payment networks.
Exceeding Thresholds: Leaving the Regime (Art. 43-4°)
When the auto-entrepreneur’s collected turnover exceeds the thresholds for two consecutive years, the option for the auto-entrepreneur regime ceases to be valid (Art. 43-4°):
- Turnover > 500,000 MAD (commerce) or > 200,000 MAD (services) for two consecutive years → the Net Real Income (NRI) regime applies, unless the taxpayer opts for the Single Professional Contribution (CPU) or the Simplified Net Income (SNI) under the form and time-limit conditions of Article 44.
- This change takes effect from January 1 of the year following the two years in which the thresholds were exceeded; the taxpayer can no longer benefit from the auto-entrepreneur regime afterwards.
The auto-entrepreneur must then maintain accounting records in accordance with the applicable regime and file the corresponding tax returns. For rapidly growing activities, the transition to an LLC (SARL) may be more appropriate.
Voluntary Option (Art. 44-I)
The auto-entrepreneur may opt for the CPU or the SNI by sending a written request to the tax inspector of their tax domicile or principal establishment, by registered letter with acknowledgment of receipt or delivered against receipt, within the deadline for filing the overall income return for the previous year (Art. 44-I). The GTC sets no minimum duration for this option: it remains valid as long as turnover does not exceed the ceilings of the chosen regime for two consecutive financial years or years (Art. 39 and 41-II).
Comparison: AE, CPU and SNI
| Criterion | Auto-Entrepreneur | CPU | SNI |
|---|---|---|---|
| Turnover threshold (commerce) | 500,000 MAD | 2,000,000 MAD | 2,000,000 MAD |
| Turnover threshold (services) | 200,000 MAD | 500,000 MAD | 500,000 MAD |
| IR rate | 0.5% / 1% of turnover | 10% of turnover × coefficient + supplementary duty | Progressive scale |
| Accounting | None | Purchase supporting documents (Art. 146 bis) | Registers of receipts and expenses (Art. 145-VI) |
| Filing | Monthly or quarterly online | Annual (before April 1) | Annual (before May 1) |
| Expense deduction | No | No (flat-rate coefficient) | Actual expenses |
When actual expenses represent a significant portion of turnover (above 40-50%), the SNI regime or the transition to an LLC (SARL) subject to corporate tax becomes more tax-efficient.
Practical Case: E-Commerce AE with 400,000 MAD Turnover
Let us consider the example of an auto-entrepreneur running an online sales (e-commerce) business with collected turnover of 400,000 MAD for the year.
| Element | Amount (MAD) |
|---|---|
| Annual collected turnover | 400,000 |
| Annual IR (0.5% × 400,000) | 2,000 |
| Supplementary duty (bracket 1,001 to 2,500 MAD: 570 MAD × 4 quarters) | 2,280 |
| Total IR + supplementary duty | 4,280 |
The total tax burden represents approximately 1.07% of turnover, a very competitive effective rate. If this auto-entrepreneur incurs merchandise purchase costs of 250,000 MAD, their actual profit is 150,000 MAD: under the SNI regime, IR would be calculated under the progressive scale on this net profit (150,000 × 34% − 22,000 = 29,000 MAD before the family-charge reduction), a markedly higher burden. The AE regime therefore remains the most favourable here as long as the ceilings are respected.
Frequently Asked Questions (FAQ)
Must an auto-entrepreneur register with the CNSS?
Yes, registration with the social security scheme is now mandatory for all auto-entrepreneurs. This registration provides access to health coverage (AMO) and a retirement pension. The contribution is calculated based on the declared turnover.
Which professions are excluded from auto-entrepreneur status?
Regulated professions set by regulation are excluded from the status (Art. 42 ter-III of the GTC). These include liberal professions organized into professional orders: lawyers, doctors, chartered accountants, architects, notaries, surveyor engineers, etc.
When should I switch from AE to LLC (SARL)?
The transition from auto-entrepreneur to LLC (SARL) is recommended when: (1) your turnover regularly exceeds the AE thresholds, (2) you wish to deduct your actual expenses to optimize your taxation, (3) you need increased commercial credibility (public contracts, bank financing), or (4) you plan to take on partners. Corporate tax is 20% for any net fiscal profit below 100M MAD (35% above).
How do I file a quarter with zero turnover?
You must file a nil return via the ae.gov.ma platform, even if no collections were made. Failure to file may result in penalties and, in the event of prolonged non-filing, removal from the auto-entrepreneur register.
READ ALSO:
- Complete Guide to Auto-Entrepreneur in Morocco
- Switching from Auto-Entrepreneur to LLC (SARL): Steps and Taxation
- Professional IR in Morocco: NRI, SNI and CPU
This article is written by the team of chartered accountants at Upsilon Consulting, a firm registered with the Order of Chartered Accountants (OEC) of Morocco.
