Complete Guide to Exempt Allowances (IR and CNSS) in Morocco: Note 16/2017
Executive Summary: Service Note No. 16/2017 of the DGI harmonises the application of Article 57-1 of the CGI concerning allowances exempt from IR and CNSS. This guide details legal ceilings, justification conditions and best practices.
1. Introduction and Legal Foundations
Rigorous payroll management and tax burden control require perfect knowledge of Service Note No. 16/2017/D.L.E.C.I. This reference document was established by the DGI to standardise the application of Article 57-1 of the CGI.
The key challenge is the harmonisation of the tax base (IR) and social base (CNSS). By aligning exemption ceilings, the administration aims to reduce treatment distortions and reassessment risks during audits.
2. Classification of Exempt Allowances
Type A
Allowances with legal ceiling
Exemption is acquired by right as long as the amount does not exceed the regulatory threshold. No additional justification required.
Type B
Allowances exempt with justification
Exemption is conditional on producing supporting documents: invoices in the company name with ICE, expense statements, mission orders.
3. Transport and Business Travel Allowances
| Allowance | Ceiling / Base | Conditions |
|---|---|---|
| Travel (actual) | Total actual expenses | Transport, restaurant and hotel invoices (company name) + expense statement |
| Occasional travel (fixed) | Meals: 10x hourly SMIG/day. Accommodation: 30x hourly SMIG/day | Written mission order. Mission over 50 km from residence |
| Regular travel (fixed) | Max 100% of base salary, capped at 5,000 MAD/month | Reserved for itinerant professions (sales reps, agents) |
| Kilometric allowance (IK) | Fixed at 3 MAD/km | Personal vehicle for service. Justification: date, route, km, purpose |
| Commuting transport | 500 MAD/month (urban). 750 MAD/month (outside urban area) | Not applicable if transport provided by company, company car or IK paid |
4. Specific Allowances (Category A)
Cashier allowance
190 MAD/month
For agents with monetary responsibility
Representation allowance
10% of base salary
Reserved for senior executives
Tool allowance
100 MAD/month
For workers owning their tools
Soiling / Work clothes
210 MAD/month
For particularly dirty work
Milk allowance
150 MAD/month
For handling toxic products
5. Food and Meal Allowances
Meal/lunch allowance
2x hourly SMIG / day
Capped at 2 times the hourly SMIG per working day.
Meal tickets
20 MAD/day max
Limit of 20 MAD/day AND maximum 20% of monthly taxable gross salary.
6. Social and Family Assistance
Social bonuses
2,500 MAD/year
Global ceiling: birth, marriage, death, school entry, religious holidays
Mecca travel allowance
Once per career
Limited to return flight ticket and Office des Changes allocation
Loan interest reduction
Balance ≤ 50,000 MAD
For loans granted by employer for social housing or primary residence
Internal relief
Actual justified expenses
Medical expenses, hospitalisation, accidents with supporting invoices
7. Contract Termination
Severance Pay Exemption Scale
Damages — Exemption admitted
1.5 months of salary per year of seniority, capped at 36 months.
Exclusions — Fully taxable
- Notice period allowance: fully subject to IR and CNSS
- Voluntary departure allowance: no exemption possible
- Retirement departure allowance: fully taxable
Monthly Ceilings Summary
8. Non-Compliance Risks
Tax reassessment (DGI)
- Reintegration into IR base
- Tax recall with 15% surcharge
- Late penalties (5% + 0.50%/month)
Social reassessment (CNSS)
- Reintegration into contribution base
- Recall of employer and employee contributions
- Late surcharge of 3% per month
Conclusion: Secure Your Payroll Through Expertise
Mastering exempt allowances under Note 16/2017 constitutes a major social and fiscal optimisation lever for Moroccan companies. By scrupulously respecting legal ceilings and maintaining impeccable documentation, you secure your payroll against audits while legally reducing your charges.
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Legal References
- CGI - Article 57-1: IR base exemptions
- Service Note No. 16/2017/D.L.E.C.I. - DGI