Pensions and life annuities of Moroccan source

Definition

What this is about

For income tax purposes, pensions and life annuities fall within the category of employment and similar income art. 56 CGI. They are in principle subject to withholding tax, operated by the annuity payer domiciled or established in Morocco ; pensions paid by the State and those paid into the accounts of public accountants give rise to a withholding by the paying accountants art. 156-I CGI.

The Finance Act for 2025 introduced an exemption specific to pensions, which the Act for 2026 amended and supplemented art. 57-27° CGI. It does not cover all pensions : the text designates specific schemes and expressly excludes the others. Establishing which scheme each pension falls under is a prerequisite to any question of tax or filing.

Scope

Who is concerned

Article 57-27° exempts from tax retirement pensions and life annuities paid, first, to retirees covered by the basic pension schemes referred to in article 59-II-A and, second, to private sector retirees under group supplementary retirement insurance contracts, by the Caisse interprofessionnelle marocaine de retraite, on the same conditions as those of article 28-III. The basic schemes so referred to are :

• The civil pensions scheme established by Act no. 11-71 of 30 December 1971.
• The military pensions scheme established by Act no. 13-71 of 30 December 1971.
• The collective retirement allowance scheme established by Royal Decree-Law no. 1-77-216 of 4 October 1977.
• The social security scheme governed by Royal Decree-Law no. 1-72-184 of 27 July 1972.
• The pension schemes provided for by the statutes of Moroccan pension bodies incorporated and operating in accordance with the legislation and regulations in force in this area.

The text then closes the scope : "retirement pensions and life annuities paid under other supplementary pension schemes are excluded from this exemption". A supplementary pension not paid by the Caisse interprofessionnelle marocaine de retraite under a group contract therefore remains taxable. The reference to article 28-III moreover imports the conditions set out there : a contract term of at least eight years, subscription with insurance companies established in Morocco, and benefits paid from the age of 45 years completed art. 28-III-A.

The fifth category — the statutory schemes of Moroccan pension bodies — is defined by reference, not by enumeration. Where there is doubt as to which scheme applies, the code does not settle the point : the answer lies in an examination of the body's statutes, not in a direct reading of the tax provision.

Applicable rules

What remains taxable, and how

For pensions that remain within the scope of tax, the net taxable income is obtained by applying to the gross taxable amount, after deduction where applicable of the contributions and premiums referred to in article 59-III and IV, a standard abatement of 70% on the portion not exceeding 168,000 dirhams annually, and of 40% on the excess art. 60-I CGI. The progressive scale then applies, the band up to 40,000 dirhams being exempt art. 73-I CGI.

The exemption has a direct filing counterpart : taxpayers whose only income consists of pensions and life annuities exempt under article 57-27° are not required to file the global income return art. 86-7° CGI. A separate exemption from filing remains available to holders of supplementary retirement pensions paid by several annuity payers established in Morocco and required to operate the withholding, where the total net taxable amount does not exceed the exempt threshold of the scale art. 86-5° CGI.

Both cease to have effect as soon as the taxpayer considers themselves overtaxed or claims the deductions of articles 28 and 74 art. 86 CGI. A retiree who claims relief for family responsibilities, or recovers an excess withholding, becomes a filer again.

Deadlines and limitation

The timetable

1. Pensions acquired in 2025

   On a transitional basis, holders of pensions acquired under the basic schemes, excluding supplementary schemes, benefited from a 50% reduction in the tax due for 2025 FA 60-24, art. 8-IV-8°.

2. From 1 January 2026

   The exemption of article 57-27° applies to retirement pensions and life annuities acquired from that date FA 50-25, art. 7-IV-8°.

3. Every month

   Withholdings operated by annuity payers are paid to the Treasury in the following month art. 174-I.

4. Before 1 March

   Filing of the global income return, where no exemption from filing applies art. 82-I. The tax due is paid spontaneously within the same period art. 173-I.

5. Until 31 December of the 4^th year

   The administration's right to make good, running from the year in which the income was acquired art. 232-I ; for years never declared, liability extends up to a limit of ten years art. 232-VIII-15°.

The decisive date is that on which the pension is acquired, not that of its payment nor that of retirement.

Documents and supporting evidence

The elements of the file

The file rests on the following elements :

• Identification details : address of the tax domicile, national identity card or residence card, tax identifier and municipal services tax reference number for the habitual residence art. 82-I.
• Documents establishing the scheme paying the pension : material linking each pension to one of the schemes of article 59-II-A or to a group contract operated by the Caisse interprofessionnelle marocaine de retraite.
• Evidence of amounts and withholding : certificates of pension payments, amount taxed, amount withheld, period concerned and tax identifier of the annuity payer art. 82-I.
• Elements conditioning the abatement : documents relating to the contributions and premiums of article 59-III and IV, which are deducted from the gross taxable amount before the abatement art. 60-I.

Where a deduction under article 28-III-A is claimed, the code itself names the documents to be attached : a certified true copy of the contract and a payment certificate stating the election for deductibility. This list is indicative ; the exact composition of the file depends on the situation.

Points requiring care

What can cause a file to fail