audigroupExemption Guide for Compensation according to the Article 57 of the General Tax Code
This note aims to clarify and standardize the application of rules related to exemptions for compensation under Article 57 of the General Tax Code. Classified into specific categories, these compensations are governed by different exemption conditions, requiring precise understanding for their fiscal and social treatment.
Category I: Transport and Travel Allowances
Various travel allowances:
- Exemption based on verified actual expenses: Full reimbursement of expenses upon submission of supporting documents.
- Lump sum for occasional trips: Amounts calculated on a flat-rate basis for various expenses (transport, food, accommodation) depending on the nature and justification of the trips.
- Lump sum for regular business trips: Exemption up to 100% of the base salary, capped at 5,000 Dhs per month for roles requiring continuous travel.
Mileage allowance:
Exemption set at 3 Dhs per kilometer for professional trips using the employee’s personal vehicle, upon presentation of adequate justifications.
Home-to-work transportation allowance:
Exemption up to 500 Dhs per month within the urban perimeter and 750 Dhs per month outside the urban perimeter, except for certain exclusions, especially for those whose travel is covered by the employer or have a company car.
Company or service vehicle:
Exemption for executive managers and itinerant staff, under specific conditions.
Category II: Specific Job-related Allowances
Cash, representation, tool, dirt, milk allowances: Each allowance benefits from an exemption capped at distinct amounts based on the nature of the work.
Category III: Meal Allowances
Meal allowance, representative vouchers, food for officers and sailors: Exemption capped at twice the hourly minimum wage for certain allowances, with specific exclusions.
Category IV: Social-related Allowances
Interest reduction on loans, medical aids, social gratuities: Exemption according to determined amounts for each type of social assistance or benefit, linked to family events or medical situations.
Category V: Various Allowances
Moving allowance due to relocation, termination, telephone expenses: Specific exemption ceilings are defined for each type of allowance, with precise criteria concerning relocations, terminations, and other covered expenses.
This note aims to establish clear guidelines for the interpretation and treatment of exempted allowances in fiscal and social matters, offering a practical reference for businesses. It is based on close collaboration with relevant partners, aiming to simplify the management of employee compensations and improve relations with the administration.