In brief: The TAHFIZ program exempts newly created Moroccan companies from income tax and employer social contributions for up to 10 employees over 24 months, saving approximately 2,200 MAD per month per recruit. Eligibility requires creation between 2015 and 2026, CDI contracts, and gross salaries capped at 10,000 MAD. Learn more about company creation in Morocco.
TAHFIZ Program in Morocco
Morocco, in its constant quest for innovation in the employment sector, introduced the TAHFIZ Program.
Indeed, it is a strategic initiative aimed at stimulating job creation across the country. With TAHFIZ, the company saves on these additional costs, bearing only the employee’s share of social contributions, which represents savings of approximately 2,200 dirhams per month per employee.
Companies can benefit from the program for:
- A maximum of ten employees;
- A period of 24 months from the date of recruitment of the employees.
The TAHFIZ program is part of Morocco’s employment strategy for the period from 2015 to 2026. The TAHFIZ program for employment promotion grants newly created entities the advantage of benefiting from an exemption from tax and social charges.
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TAHFIZ Program: Incentive for Job Creation in Morocco
Benefits of the TAHFIZ Program
The TAHFIZ Program stands out for its significant benefits for Moroccan companies, particularly new entities. One of the main advantages is the exemption from Income Tax for gross monthly salaries not exceeding 10,000 dirhams. This measure considerably reduces the tax burden on companies and makes hiring new employees more financially attractive.
This program is managed by the National Agency for the Promotion of Employment and Skills (ANAPEC).
Furthermore, the program covers the employer’s share of contributions due to the CNSS (National Social Security Fund) and the vocational training tax. This coverage by the State represents substantial savings for employers, enabling them to invest more in developing their activities and training their employees.
To illustrate these advantages, let us consider the example of a company that recruits an employee with a net salary of 7,500 dirhams. Without the TAHFIZ program, this company would have to bear a significantly higher gross salary cost, including CNSS contributions and the vocational training tax.
Eligibility Conditions and Program Duration
The TAHFIZ Program is designed to be accessible to a wide range of companies and associations in Morocco, but certain conditions must be met to benefit from it. First, the company or association must have been created between January 1, 2015 and December 31, 2026. This time window aims to encourage the creation of new businesses and to stimulate employment in the private sector.
In addition, employees must be recruited within 24 months of the company’s start of operations and must be hired under a Permanent Employment Contract (CDI). This requirement underscores the commitment to employment stability and long-term growth. Gross salaries must not exceed 10,000 dirhams, and a company cannot benefit from the program for more than ten contracts.
The duration of the exemption offered by the TAHFIZ Program is twenty-four months. This period is crucial in helping companies establish and develop themselves without the initial burden of tax and social charges.
What are the benefits of the TAHFIZ program?
Companies and employees benefit, under this program, from:
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First, the exemption from Income Tax on the gross monthly salary capped at 10,000.00 MAD;
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Second, the State covers the employer’s share in respect of:
First, the contribution due to the CNSS
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Then, the vocational training tax.
As a result, this program constitutes a real advantage for new companies. These businesses have an opportunity to optimize their costs. This scheme also provides relief from social and tax charges for new companies. Accordingly, it aims to encourage businesses to create jobs in Morocco.
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What impact does this program have on salary costs?
To illustrate this impact, let us take a concrete example of calculating the salary cost (gross loaded salary) with and without TAHFIZ.
Case of an employee not benefiting from the TAHFIZ program
Assuming a company has recruited an employee for a net salary of 7,500 dirhams, the company would have to pay in this case:
- CNSS contributions and the vocational training tax for an amount of 1,687.63 dirhams;
- Income tax for 796.40 dirhams.
The gross loaded salary therefore amounts to 9,984.03 MAD.
For more information on salary calculation, read: Net and gross salary simulator
Case of an employee benefiting from the program
In this case, the company and the employee bear only the employee’s share of social contributions, i.e. 268.80 MAD. The gross loaded salary corresponding to a net salary is 7,768.80 MAD.
This represents savings of approximately 2,200 MAD per month.
Exemption Duration
The duration of the exemption under the TAHFIZ contract is twenty-four (24) months.
Eligibility Conditions
Any company or association can benefit from the TAHFIZ hiring incentive program under certain conditions:
- First, the company must have been created during the period from January 1, 2015 to December 31, 2026;
- Second, employees must be recruited within 24 months of the start of operations;
- Third, employees must be hired under a Permanent Employment Contract (CDI);
- Fourth, gross salaries must not exceed 10,000 MAD;
- Finally, the company cannot benefit from more than ten TAHFIZ contracts.
TAHFIZ Program: Procedure to Follow
In order to benefit from the various advantages of the TAHFIZ program, the following detailed steps must be followed:
- First, declaration of existence of the company or association with the tax administration;
- Second, registration of the employee on the ANAPEC portal;
- Third, completion by the recruiter of the program benefit protocol on the ANAPEC portal;
- Fourth, registration of the employee with the CNSS;
- Fifth, submission by the employer at an ANAPEC agency of a file per employee, including a TAHFIZ program benefit protocol accompanied by a certified copy of the employment contract;
- Sixth, payment by the recruiter to the CNSS of the employee contribution for employees benefiting from the program;
- Seventh, opening of rights by the CNSS for the benefit of the recruits;
- Finally, declaration by the company of the list of recruits benefiting from the program.
Foreign workers in Morocco: CNSS Regime
SMIG SMAG: Minimum wage in Morocco
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Payroll Management Services by Upsilon Consulting
In addition to understanding and navigating the complexities of the TAHFIZ Program, effective payroll management
remains a major challenge for many companies.
Upsilon Consulting offers expert payroll management solutions, guaranteeing full compliance with the regulations in force.
Our services include payroll slip management, calculation and payment of social contributions, as well as monitoring of the various tax obligations related to employment. By entrusting us with these tasks, companies can focus on their core business, while having the assurance that their salary and tax obligations are managed professionally and efficiently.
Contact Upsilon Consulting
For any questions regarding the TAHFIZ Program, or to learn more about our payroll management services, we invite you to contact Upsilon Consulting. Our team of experts is at your disposal to provide advice and help you make the most of the opportunities offered by the TAHFIZ program. Do not hesitate to contact us for an initial consultation and to discover how we can support the development and growth of your company.
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FAQ - Frequently Asked Questions
Q1: What types of companies can benefit from the TAHFIZ Program?
A: Any company or association created between January 1, 2015 and December 31, 2026, meeting the eligibility conditions, can benefit from the Program.
Q2: What are the specific advantages offered by the TAHFIZ Program?
A: The advantages include the exemption from Income Tax for gross salaries up to 10,000 MAD and the State covering the employer’s share of CNSS contributions and the vocational training tax.
Q3: What is the duration of the exemption offered by the TAHFIZ Program?
A: The duration of the exemption under the program is 24 months.
Q4: What is the procedure to benefit from the TAHFIZ Program?
A: Companies must follow several steps, including the declaration of existence, registration of employees on the ANAPEC portal, registration with the CNSS, and other administrative procedures detailed above.
