The Moroccan government, led by Aziz Akhannouch, has announced a phased tax exemption for retirement pensions. Starting in January 2025, a 50% reduction in income tax will apply, culminating in full exemption by January 2026. This initiative was approved Monday evening by the Finance and Planning Committee of the House of Councillors as part of the 2025 Finance Bill, following proposals from the ruling coalition, the CGEM, and trade unions.
Basic retirement pensions and annuities will be fully exempted from 2026, while a 50% tax cut will apply in 2025. However, supplementary retirement schemes are excluded from this measure.
Fouzi Lekjaa, the Minister Delegate for the Budget, highlighted that the tax reform will cost the state over 5 billion dirhams. However, it aims to promote social equity and redistribute resources to poorer segments of society.
This tax exemption aligns with Framework Law 69.19, developed through extensive discussions among political, civil, and economic actors. It complements corporate tax reforms initiated in 2023.
