The comments and questions on Moroccan self-employed groups confirm it: Morocco has found the most efficient way to fight against disguised wage employment. There is no longer any need to go to court and demand in a long trial that the contract be reclassified as an employment contract. All that was needed was a simple tax measure that was impossible to circumvent.
After making sure of the extent of the disaster by verifying several times that the withholding 30% for services provided to a single customer in excess of the 80,000 dirham threshold were deducted by the customer from its payment of the invoice issued by the auto-entrepreneur and that he would therefore only receive 70% of his fees, and that this threshold was annual and not quarterly, a certain number of them arrived at the following question:
how to get deregistered?
Because they strongly doubt that customers would agree to maintain their net income by paying the extra 30%.
Which I did also, at the beginning.
I was wrong.
A simple economic calculation shows that this is still advantageous for the customer.
This only works if your total annual turnover remains below 200,000 dirhams
The calculation in this article was made for a “2022” turnover of 164,000 dirhams. If you charge less, the figures will change (the allowance for professional expenses, the tax brackets may change).
We can make a calculation for you that corresponds to your precise situation (and taking into account the VAT. Do not hesitate to contact us.
For withholding tax, companies have three options:
They can :
- accept the extra cost (we explain why in underneath);
- integrate on their payroll the auto-entrepreneurs who work exclusively for them;
- vary their suppliers, by distributing among several self-employed contractors the services ordered from one.
(We immediately forget the solution which would be, for a service made by one person, to distribute the invoices on several auto-entrepreneurs, because it is a false invoice and it will be seen).
The third solution, if it seems simple, is complicated to manage in practice, except in a call centre type of organisation, where the agents are numerous and interchangeable.
But as soon as the self-employed person regularly carries out tasks of his own, interacts with a team, has acquired knowledge of the company, etc., this will require regular changes in organisation, the challenge of working with a new person each time… in short, effort and loss of time.
It is more profitable for the company to take on the 30% than to recruit you as a an employee
That’s the good news. If your customer does not want to vary its suppliers, it will pay less by increasing your invoices by 30% than by paying you.
Only if today you charge a maximum of 164,000 dirhams/year!
Because in this case, for your customer to pay the 30% without you losing money, you will have to charge 200,000 dirhams .
The net income of a self-employed person who charges 164,000 dirhams/year
|Tax in full discharge (1% for services)||– 1,640|
|CNSS AMO||– 2,280|
|Patent after 5 years||– 500|
|Net annual income||159,580|
Equivalent to a net monthly salary of 13,298 dirhams
The cost of an equivalent net salary
To arrive at a net salary of 13,298 dirhams, you need a gross salary of 19,500 dirhams plus two non-taxable bonuses: transport costs of 500 dirhams/month and the Eid bonus of 200 dirhams per month (paid in one go for 2,400 dirhams).
You have all the details for this calculation in the article on income tax.
However, this salary will cost the company a little more than 277,000 dirhams/year (adding the employer’s charges of 34,803 dirhams).
That is 14% more than the 200,000 dirhams you want to charge!
And, by keeping you as a service provider, she continues to escape the labour code, seniority increases, etc., which are also important advantages.