The rate of enrollment in the self-contractor system decreased by about 34 percent over the past year, after the government introduced amendments to this system that stipulates setting a ceiling for the number of transactions that are subject to a low tax.
The data of the annual report of the General Directorate of Taxes indicated that the number of engagements registered last year amounted to about 56,699, compared to 86,23 engagements in 2021; This represents a decrease of about 34 percent year on year.
By the end of last year, the number of self-contractors reached about 406,000, with an annual increase of about 12 percent, after the number of those registered in this system in 2021 was about 363,000.
This system recorded the highest growth rate in 2020, as the number of subscribers reached 287,000, an annual increase of about 119 percent.
The self-contractor system allows each individual person to individually engage in an industrial, commercial or vocational activity, or to provide services, provided that his annual turnover does not exceed 500 thousand dirhams for industrial, commercial and vocational activities, and within the limits of 200 thousand dirhams for activities providing services.
Workers under this system are subject to a simplified tax specified at 1 percent of the turnover obtained for industrial, commercial and craft activities, and 2 percent of the turnover obtained for service providers.
During the current year, this system underwent a new change, as the number of self-contractor transactions with one customer was restricted to 80 thousand dirhams, and in the event that this ceiling was exceeded, it was subject to a tax set at 30 percent; This is justified by the Ministry of Economy and Finance by the fact that a number of companies are now resorting to dealing with this system to reduce costs instead of hiring.
Abdullah Al-Farki, head of the Moroccan Confederation of Very Small, Small and Medium Enterprises, said that the increase recorded in the number of participants last year, albeit at a slower rate than the previous year, was mainly related to some programs launched by the government, including “Workshops” and “Forsa”, where a number of associations stipulate Those operating in these two programs have to enroll in the self-contractor system.
Al-Farki stated, in a statement to Hespress, that this system faces many obstacles that prevent its development and push a large proportion of those involved in it not to continue. Including setting a ceiling for transactions with one customer and the total number of transactions per year, and he said that the government should reconsider this matter.
The head of the Confederation, which includes self-contractors, stated that those involved in this system face many difficulties. Among them is the difficulty of accessing bank financing to develop their activities, not to mention their poor benefit from public deals, as previously promised.
Morocco had launched this system for the benefit of holders of business establishment projects and persons working in the unorganized sector, in addition to students, graduates of vocational training institutions, trainees and the unemployed, and it is also open to resident foreigners.