In Morocco, employees can submit reimbursements for professional travel expenses without creating taxable income, provided the reimbursements comply with statutory limits and documentation requirements.
Invoice Requirements
Invoices do not need to list the employer’s name for tax-free treatment, but they must show:
Vendor name
Date
Amount
Description of expense
Mileage Reimbursement
Employees using their own vehicle for business travel may receive a tax-free mileage allowance of MAD 3 per kilometre.
Conditions:
The vehicle must belong to the employee.
The trip must be within the professional framework and start from the company address (or an approved point).
The route, number of kilometres, date, and purpose must be duly justified.
Any amount above MAD 3/km is considered taxable income.
Parking & Tolls
Reimbursable as separate items with receipts.
Should not be included in the mileage allowance.
Transport Costs
Public Transport, Taxis, Rental Cars: Reimbursement based on actual documented expenses (tickets, invoices) when the mission/trip is justified and authorised.
Ensure receipts clearly show vendor, date, amount, and type of expense.
Accommodation & Meals
Reimbursement is not permitted if the employee’s residence is less than 50 km from the mission location.
For regular business trips, Moroccan law allows flat-rate allowances up to a ceiling, provided they respect legal limits.
Actual costs for accommodation and meals may be reimbursed if tied to a business mission and properly supported.
Per Diem
Moroccan law permits allowances for food, accommodation, and transport either as reimbursement or flat-rate, subject to conditions.
If allowances meet the tax-exempt criteria (professional travel, justified, within limits), they are not taxable.
Excess amounts or personal benefits are taxable.
Entertainment & Gifts
Must be clearly documented as business-related and reasonable in amount.
If considered a personal benefit, they become taxable income.
VAT Recovery
Morocco applies VAT (TVA) rules. Employers can recover VAT on business expenses if invoices meet legal requirements and expenses are for business use.