Introduction: A Revolution for Small Taxpayers
Since January 1, 2021, the Unique Professional Contribution (CPU) has transformed the taxation of individual entrepreneurs in Morocco. This regime, introduced by Finance Law 2021, replaces the former lump-sum profit regime with a clear goal: simplify and unify the fiscal and social obligations of small taxpayers.
1. What is the CPU?
The CPU is an "all-in-one" tax. It groups into a single payment:
- Income Tax (IR) on professional income
- Professional Tax (TP)
- Municipal Services Tax (TSC)
- A complementary AMO right (Compulsory Health Insurance)
> Good news: individuals subject to the CPU benefit from total and permanent exemption from professional tax and municipal services tax.
2. Who is eligible for the CPU?
This regime is aimed at individuals whose professional income was previously determined by the lump-sum regime, as well as new taxpayers.
Annual turnover thresholds (VAT inclusive)
| Type of activity | Maximum annual turnover |
| Commercial, industrial and craft activities | 2,000,000 MAD |
|---|---|
| Service providers | 500,000 MAD |
Exclusions
Certain regulated professions and specific activities set by decree remain excluded from the CPU, regardless of their turnover (doctors, lawyers, chartered accountants, etc.).
3. How is the CPU tax calculated?
The calculation is based on two components.
3.1 Tax on professional income
The formula is:
Revenue × Professional coefficient = Taxable base Taxable base × 10% (flat rate) = Income TaxThe coefficient varies by profession (specific to each activity in the DGI nomenclature).
Practical example:| Element | Value |
| Activity | Hairdresser |
|---|---|
| Annual revenue | 60,000 MAD |
| Coefficient | 40% |
| Taxable base | 24,000 MAD |
| Income tax (10%) | 2,400 MAD |
3.2 Complementary right (AMO)
This amount is calculated according to a fee schedule based on the previously calculated income tax:
| Income Tax calculated | Annual complementary right (AMO) |
| Less than 500 MAD | 1,200 MAD |
|---|---|
| From 500 to 2,000 MAD | 2,400 MAD |
| From 2,001 to 5,000 MAD | 4,800 MAD |
| From 5,001 to 10,000 MAD | 7,200 MAD |
| From 10,001 to 20,000 MAD | 9,600 MAD |
| From 20,001 to 50,000 MAD | 12,000 MAD |
| More than 50,000 MAD | 14,400 MAD |
4. Filing obligations and payment
The CPU regime is fully declarative and digitized.
Annual declaration
- The taxpayer declares their turnover before April 1st of each year.
- The declaration is done exclusively online via the SIMPL-CPU portal of the DGI.
Payment options
Two methods are available at the time of declaration:
| Option | Method |
| Single payment | Full payment before April 1st |
|---|---|
| Quarterly installments | 4 payments before the end of the 3rd, 6th, 9th and 12th months |
5. Special cases: Disposals and Capital Gains
In the event of business disposal or cessation of activity:
- The taxpayer must file a declaration within 45 days of the disposal or cessation.
- Capital gains realized on the sale of equipment or clientele are subject to a flat rate of 20%.
6. Advantages and limitations of the CPU
Advantages
Limitations
CPU vs Self-Employed: What's the difference?
| Criterion | CPU (Individual) | Self-Employed (Auto-Entrepreneur) |
| Commercial/craft threshold | 2,000,000 MAD | 500,000 MAD |
|---|---|---|
| Services threshold | 500,000 MAD | 200,000 MAD |
| Income tax rate | 10% on base (revenue × coeff.) | 0.5% or 1% on collected revenue |
| Professional tax exemption | Permanent | First 5 years |
| Health insurance | AMO complementary right | Via social security |
| Accounting | Revenue register | Revenue register |
| VAT | Depends on activity | Outside scope |
| Registration | SIMPL-CPU (DGI) | rn.ae.gov.ma + Barid Al-Maghrib |
Expert Advice from Accounting Services SARL
The choice of tax regime is strategic for your business. The CPU is advantageous if your actual expenses are low, but the Net Real Result (RNR) regime may be more beneficial if you bear significant expenses (rent, salaries, purchases...).
Accounting Services SARL supports you in choosing the optimal tax regime and managing your CPU declarations:- Calculation of your CPU tax based on your activity
- Legal tax optimization (choice of regime)
- Support with the SIMPL-CPU portal
- Management of your annual declarations
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