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 thresholds are exceeded, the transition to the Single Professional Contribution (CPU) regime or the Simplified Net Income (SNI) regime is automatic.
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.).
- Single status: the auto-entrepreneur cannot combine this status with another professional activity subject to professional IR.
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.
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: the auto-entrepreneur is not subject to the progressive IR scale and does not need to file an annual overall income return for their AE activity.
Quarterly Supplementary Duty
In addition to IR, the auto-entrepreneur is liable for a supplementary duty calculated by quarterly turnover bracket:
| Quarterly Turnover (MAD) | Supplementary Duty |
|---|---|
| 0 – 50,000 | 300 MAD |
| 50,001 – 100,000 | 600 MAD |
| 100,001 – 150,000 | 1,200 MAD |
| 150,001 – 200,000 | 1,800 MAD |
| 200,001 – 300,000 | 2,400 MAD |
| Above 300,000 | 3,600 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 quarterly IR via the dedicated platform.
Quarterly Filing and Payment
The auto-entrepreneur declares their turnover and pays their IR quarterly via the national auto-entrepreneur platform (ae.gov.ma). The filing must be completed even in the event of zero turnover for the relevant period.
The quarterly 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: Automatic Transition (Art. 43)
When the auto-entrepreneur’s turnover exceeds the thresholds for two consecutive years, the transition to the higher regime is automatic:
- Turnover > 500,000 MAD (commerce) or > 200,000 MAD (services) → transfer to the Single Professional Contribution (CPU) or the Simplified Net Income (SNI).
- This transfer takes effect from January 1 of the year following the second year of exceeding the threshold.
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-II)
The auto-entrepreneur may voluntarily opt for a higher regime (CPU or SNI) by submitting a request to the tax authorities before March 1 of the year from which they wish to be subject to the new regime. This option is irrevocable for a period of three years.
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 | CPU scale | Progressive scale |
| Accounting | None | Simplified register | Simplified accounting |
| Filing | Quarterly online | Annual | Annual |
| Expense deduction | No | Flat-rate allowance | 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 (estimated 4 quarters) | ~4,800 |
| Total IR + supplementary duty | ~6,800 |
The total tax burden represents approximately 1.7% of turnover, a very competitive effective rate. However, 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 on this net profit, which could prove more advantageous in certain configurations.
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. These include liberal professions organized into professional orders: lawyers, doctors, chartered accountants, architects, notaries, surveyor engineers, etc. Personalized tax guidance helps determine the optimal status.
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 offers a rate of 20% for profits below 300,000 MAD.
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
- Tax Law Advisory — Upsilon Consulting
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.
Is your activity exceeding AE thresholds or are you unsure which tax status to choose? Contact Upsilon Consulting for a personalized assessment.
