Morocco’s auto-entrepreneur status (Law 114-13) is the simplest way to operate a legal business in the country. But between the simplified brochures and the reality of the General Tax Code (CGI), there are fiscal traps that can cost you dearly. Here is what you need to know to run your activity without unpleasant surprises in 2026.
1. Income tax (IR): the liberatory flat rate
Unlike standard companies taxed on a progressive scale, auto-entrepreneurs pay income tax calculated directly on their collected turnover (chiffre d’affaires encaissé). This mechanism is called the liberatory flat rate.
| Type of activity | IR rate | Annual turnover ceiling |
|---|---|---|
| Commercial, industrial, craft | 0.5% | 500,000 MAD |
| Service provision | 1.0% | 200,000 MAD |
What “liberatory” means in practice: once this tax is paid, you owe no further general income tax declaration — unlike liberal professionals subject to the net simplified result or actual result regime. Payment is quarterly, directly on the ae.gov.ma portal — the same quarterly declaration covers both the flat-rate IR and CNSS/AMO contributions in a single payment.
Important: if your turnover exceeds these ceilings for two consecutive years, you lose the benefit of auto-entrepreneur status and fall under the standard tax regime. Do not confuse these global status ceilings (500,000 MAD / 200,000 MAD) with the 80,000 MAD per-client threshold that triggers withholding tax — they are two separate rules.
2. The 80,000 MAD trap: withholding tax (RAS) on service provision
This is the least-known — and potentially most costly — rule. To prevent disguised employment, the Moroccan state has set a strict threshold on the concentration of turnover from a single client.
Legal basis: Articles 45 bis-II and 73 (II-G-8°) of the CGI, introduced by Article 6 of Finance Law No. 50-22 for 2023, in force since 1 January 2023. The official interpretation is set out in DGI Circular Note No. 733 (February 2023) and the joint DGI/TGR circular of 1 June 2023.
The rule: if you invoice more than 80,000 MAD excluding tax to the same client (identified by ICE) in a calendar year (1 January – 31 December), the portion above that threshold is subject to a 30% withholding tax.
Important — scope limited to services: The 30% withholding tax applies only to service provision. Sales of goods, merchandise, materials, and equipment are explicitly excluded from this withholding mechanism. A trader or reseller is not exposed to the RAS even if a single client buys more than 80,000 MAD in goods.
Public bodies: For public-law entities, each ordonnateur or sous-ordonnateur is counted as a separate client.
Who must apply the withholding? The obligation falls only on:
- Legal entities (companies, public bodies, local authorities, etc.)
- Individuals taxed under RNR or RNS (actual net result or simplified net result regime)
An auto-entrepreneur invoicing another auto-entrepreneur (or an individual taxed on a forfeit basis) does NOT trigger the withholding. Only invoicing a company or an RNR/RNS professional activates this mechanism.
Worked example: you invoice 200,000 MAD in services to a single company over the year.
The 30% withholding is liberatory of IR on the excess tranche — it is a final tax on that portion, not creditable against the 1% flat rate. Both obligations stack:
- 1% × 200,000 MAD = 2,000 MAD (flat-rate IR on the full turnover)
- 30% × (200,000 − 80,000) = 36,000 MAD (liberatory withholding on the excess tranche)
- Total: 38,000 MAD = effective rate of 19% — versus 1% if that same turnover had been spread across multiple clients.
This mechanism can be devastating if you do not plan for it in your cash flow. The practical advice: never exceed 80,000 MAD in invoicing to a single client without first running a comparison with what you would pay under a one-person SARL (SARL AU).
For a visual breakdown of this rule, see the interactive diagram in the French version of this article.
The 80,000 MAD threshold in 2025 and 2026: Parliamentary amendments to raise this threshold to 100,000–150,000 MAD were tabled in November 2024 but rejected by Minister Fouzi Lekjaa. Finance Law 2025 (Law 60-24, December 2024) made no change to the threshold. Finance Law 2026 (Law 50-25, Official Gazette No. 7465 bis, 16 December 2025) introduces other withholding measures (notably 5% on commercial rents from July 2026) but does not modify the 80,000 MAD rule applicable to auto-entrepreneurs. The threshold is confirmed at 80,000 MAD for 2026.
3. Do not confuse: per-client threshold vs. status ceilings
Warning — two distinct rules: – Per-client threshold (80,000 MAD excl. tax): triggers the 30% withholding on the excess tranche for services. This is not a status ceiling. – Global status ceilings: 500,000 MAD (trade/industry/craft) or 200,000 MAD (services). Exceeding them for two consecutive years results in losing auto-entrepreneur status.
4. VAT: a base exemption, not an exclusion
Auto-entrepreneurs are technically subject to VAT, but benefit from a base exemption under Article 91-II-3° of the CGI.
Practical consequences:
- You do not charge VAT on your sales — you do not add it to your invoices.
- You cannot recover VAT on your purchases either.
Mandatory statement on all your invoices:
“VAT not applicable — Article 91-II-3° of the General Tax Code”
This statement is mandatory. Without it, your VAT-registered clients may mistakenly believe they can deduct a VAT that does not exist. During an audit, the absence of this statement is a formal irregularity.
5. Social contributions (CNSS)
Since the 2021 reform, mandatory health insurance (AMO) is integrated into the auto-entrepreneur scheme managed by the CNSS.
Key points:
- Contributions are calculated on a quarterly flat rate proportional to declared turnover, and are paid jointly with the flat-rate IR in the quarterly declaration on ae.gov.ma — there is no separate payment step on Damancom or elsewhere.
- Even with 0 MAD in turnover, a minimum contribution remains due (approximately 300 MAD per quarter in 2026 — check the current schedule at cnss.ma or with your local CNSS office).
- Non-payment has two consequences: loss of your healthcare entitlements, and late-payment surcharges that accumulate.
6. Accounting and invoicing obligations
Income register
You are not required to keep full double-entry accounts, but you must maintain a chronological register of collected receipts. This document is your first line of defence during a tax inspection. For each payment received, record: the date, invoice number, client name, and amount.
ICE required on all invoices
The ICE (Identifiant Commun de l’Entreprise — Common Company Identifier) must appear on all your invoices. It is assigned automatically when you register on the ae.gov.ma portal (rn.ae.gov.ma) — your RNAE number is your ICE. No separate step is required. Your client’s ICE (if the client is a business) must also appear on the invoice — without it, your client may face difficulties during their own audits.
Key takeaways for 2026
The auto-entrepreneur status is excellent for starting an activity or testing a market, but it has structural limitations that must be anticipated:
- The 30% withholding above 80,000 MAD from a single client is the main trap for service providers — especially freelancers on long engagements with a single employer-like client. Goods-trading activities are not affected by this rule.
- The turnover ceilings (200,000 MAD / 500,000 MAD) are quickly reached if your business takes off — exceeding them for two consecutive years means losing the status.
- The VAT base exemption is an advantage for private-individual clients but a disadvantage for VAT-registered business clients who cannot deduct anything.
If you depend on a single large client or if your turnover is approaching the ceiling, a consultation with a certified accountant to evaluate switching to a SARL AU is often the most profitable investment you can make.
Manage your auto-entrepreneur invoicing without errors
eInvoice.ma automatically includes all mandatory legal mentions on your invoices — including the VAT Article 91-II-3° statement and your ICE. You can track your receipts per client to anticipate the 80,000 MAD threshold before it is too late.
Sources: General Tax Code — DGI Morocco, Law No. 114-13 on auto-entrepreneur status, DGI Circular Note No. 733 (February 2023), Finance Law No. 50-22 for 2023 (Art. 6), Finance Law 2025 (Law 60-24), Finance Law 2026 (Law 50-25, Official Gazette No. 7465 bis). Information updated: May 2026.
