Tahfiz is a recruitment incentive program in Morocco. It provides both employers and employees with tax benefits and reduced social security contributions. Tahfiz is an Arabic word that can be translated as stimulation.
This program is managed by the National Agency for the Promotion of Employment and Skills (ANAPEC).
The TAHFIZ program is part of Morocco’s employment strategy for the period from 2015 to 2026.
TAHFIZ grants newly created entities the advantage of benefiting from an exemption from tax and social charges.
TAHFIZ Program : Incentive for job creation in Morocco
Who can benefit from the TAHFIZ employment incentive
Companies can benefit from the program for :
- A maximum of ten employees
- A duration of 24 months from the date of recruitment of employees
What are the benefits of the TAHFIZ program?
Companies and employees benefit, within the framework of this program, from :
- Firstly, the exemption from Income Tax of the gross monthly salary capped at 10.000,00 DH;
- Secondly, the State takes charge of the employer’s share of
- contribution due to the CNSS
- professional training tax.
Therefore, this program is a real advantage for new companies. These companies have an opportunity to optimize their charges.
This device also has the advantage of relieving the new companies of social and fiscal charges. Thus, it aims to encourage companies to create jobs in Morocco.
What impact does this program have on wage costs?
To illustrate this impact, let’s take a concrete example of calculating the wage cost (gross 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 will have to pay in this case
Contributions due to the CNSS as well as the professional training tax for an amount of 1,687.63 Dirhams;
Income tax for MAD 796.40.
The gross salary charged is therefore an amount of 9,984.03 MAD.
Case of an employee benefiting from the program
In this case, the company and the employee only have to pay the employee’s share of social security contributions, i.e. 268.80 MAD. The gross salary corresponds to a net 7.768,80 MAD.
That is to say a saving of about 2.200 MAD per month.
TAHFIZ Program: Duration of exemption
The duration of the exemption under the Tahfiz contract is twenty-four (24) months.
TAHFIZ Program : Eligibility conditions
Any company or association can benefit from the “TAHFIZ” hiring incentive program under certain conditions:
- This company must be created during the period from January 1, 2015 to December 31, 2026;
- The employees must be hired within 24 months from the date of the start of operations;
- Employees must be hired under a permanent employment contract (CDI);
- The gross salaries must not exceed 10.000 MAD;
- The company cannot benefit from more than ten TAHFIZ contracts.
TAHFIZ Program: Steps to follow
In order to benefit from the various advantages of the TAHFIZ program, it is necessary to follow the steps detailed below:
- Declaration of existence of the company or the association to the tax authorities;
- Registration of the employee on the ANAPEC portal;
- Completion by the recruiter of the protocol of benefit of the program on the portal of ANAPEC;
- Registration of the employee with the CNSS;
- Filing, by the employer at an ANAPEC agency, of a file per employee including a protocol of benefit of the TAHFIZ program accompanied by a legalized copy of the work contract;
- Payment by the recruiter to the CNSS of the salary contribution of the employees benefiting from the program;
- Opening of the rights by the CNSS for the benefit of the recruits;Declaration by the company of the list of recruits benefiting from the program.
Read in french : Le programme tahfiz