Very often, when I go through my translator for my first run on translating one of my french speaking post in English, it proposes “self-employed entrepreneur” for auto-entrepreneur.
In spite of not being wrong, this is not true because it does not соnѵеу the legal and tax implications behind the word “auto-entrepreneur” and, as far as I know, this specific status does not exists in the English speaking world.
In Morocco, you have three different possibilities to run your business on your own, ie. being self employed:
- register a ѕіnglе owner limited company (SARL d’A.U. for “Société à responsabilité limité d’Associé Unique”)
- register yourself to the tax аԁmіnіѕtrаtіоn as a natural person
- register as an auto-entrepreneur.
These three statuses have pros and cons, and I’ll make a detailed comparison later on.
Auto-entrepreneurs are a single person, registered, but not a company
Therefore, they can purchase and sell, but they саnnоt hire employees.
Auto-entrepeneurs have a simplified accounting and tax system
They do not collect nor deduce VAT (Sales Tax), and they pay a quarterly percentage of their turnover, that is very low (1% of the turnover for services, 0,5% for trade and industry), and another small amount for healthcare, also based on their turnover.
They need only to fill a turnover listing and they are not required to have accounting books.
Their activities are limited with respect of turnover and type of activities
The maximum yearly turnover is 200.000 dirhams for services, 500.000 dirhams for other activities.
From 2023 on, they are not authorized to invoice services for more than 80.000 dirhams / year to a single customer, everything over these 80.000 dirhams does not benefit of the light tax system.
There are a lot of activities not authorized, mainly all “regulated” trades and import and export.
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