Moroccans living in the United Arab Emirates – and investors active in both countries – often ask the same question: will I be taxed twice on the same income? The short answer is no, provided you understand how the Morocco-UAE tax relationship works and you obtain a residency certificate to claim the reduced rates you are entitled to.
This guide explains residency, which income Morocco can tax, the withholding-tax caps under the treaty, the new UAE 9% corporate tax, and the practical steps to avoid double taxation. For the broader refund picture, see our Morocco tax refund guide; for the general withholding system, see the RAS overview.
First: are you a Moroccan tax resident?
Everything flows from tax residency. Morocco taxes its residents on their worldwide income, but taxes non-residents only on Morocco-source income.
You are generally a Moroccan tax resident if:
- Morocco is your habitual residence, or
- your centre of economic interests is in Morocco, or
- you spend more than 183 days in Morocco over a rolling 12-month period.
So a Moroccan who lives, works, and has their family and economic life in the UAE is typically a Moroccan non-resident. The practical consequence: Morocco cannot tax your UAE salary or UAE business income – only income arising in Morocco (Moroccan rent, dividends from Moroccan companies, Moroccan pensions, etc.).
Key takeaway for Gulf-based MRE: if your life and economic ties are in the UAE, you are a non-resident for Moroccan tax purposes. Morocco then only reaches your Morocco-source income, not your Gulf earnings.
Which Morocco-source income is taxed (and at what withholding rate)
When income is paid from Morocco to a non-resident, the payer must withhold tax at source (RAS). The Moroccan domestic rates are:
| Income type | Domestic RAS rate (non-resident) |
|---|---|
| Dividends | 15% (or the phased-down dividend rate for residents) |
| Interest | 10% |
| Services / royalties | 10-30% |
| Pensions | Special rules – see our pension exemption guide |
| Rental income | See the rental withholding guide |
The Morocco-UAE treaty then caps several of these rates below the domestic level, so a UAE resident pays less Moroccan withholding than a resident of a non-treaty country would. To benefit, you must prove UAE residency with a certificate (see below).
How the treaty prevents double taxation
Double taxation treaties do two things: (1) they limit the rate the source country (Morocco) can withhold, and (2) they tell the residence country (UAE) how to relieve any remaining double taxation (usually by granting a credit or exempting the income).
For a UAE resident receiving Moroccan income, the typical effect is:
- Withholding is reduced at the Moroccan source to the treaty rate.
- Any Moroccan tax actually paid can usually be credited against any UAE tax due on the same income – so the same dirham of income is not taxed twice.
Worked example: a UAE-resident service provider with 20% Moroccan withholding may, under the treaty cap and with a residency certificate, bring the effective rate down and reclaim the excess. See our 10 RAS worked examples, example 10.
The UAE 9% corporate tax (since 1 June 2023)
An important recent change: since 1 June 2023, the UAE levies a 9% federal corporate tax on business profits above a threshold (with a 0% rate on profits up to AED 375,000). This means:
- UAE business profits are now taxable in the UAE, not zero-tax as before.
- The Morocco-UAE treaty matters more now, because without relief a Moroccan-connected business could face both UAE corporate tax and Moroccan tax.
- Treaty-based relief (residency determination, permanent-establishment rules, withholding caps) is the mechanism that prevents double taxation on the same profits.
For individuals employed in the UAE, UAE personal income tax remains 0% – salaries are not taxed by the UAE.
How to claim treaty benefits (the residency certificate)
The single most important document is the tax residency certificate (TRC). Without it, Moroccan payers will withhold at the domestic rate and you lose the right to the treaty rate.
Steps:
- Obtain a TRC from the UAE – issued by the Federal Tax Authority (FTA) for individuals and companies that can demonstrate UAE tax residency.
- Send the TRC to the Moroccan payer (or the Direction Générale des Impôts, DGI) – ideally before the payment is made, so the reduced rate is applied at source.
- For past over-withholding, file a refund request (demande de remboursement) with the DGI, attaching the TRC and proof of withholding. See the tax refund guide for the refund mechanics.
Always request the TRC early and keep it current. A single expired or missing certificate is the most common reason MRE lose the treaty rate and end up over-withheld.
Common situations for Moroccans in the Gulf
| Situation | Typical treatment |
|---|---|
| UAE salary, no Morocco income | Not taxed by Morocco; UAE personal income tax is 0% |
| Dividends from a Moroccan company | Moroccan RAS reduced by treaty; UAE relief avoids double tax |
| Moroccan rental income | Taxable in Morocco; treaty/relief in UAE – see rental WHT |
| Moroccan pension received in UAE | Special rules – often an allowance; see pension exemption |
| Services performed in Morocco for a UAE client | Residency + permanent-establishment analysis decides where taxed |
| Selling Moroccan property | Capital-gains rules apply regardless of residency – see property purchase taxes |
FAQ
Does Morocco tax my UAE salary if I live in the Emirates?
No. If you are a Moroccan non-resident (your habitual residence and economic ties are in the UAE), Morocco only taxes Morocco-source income. Your UAE salary is not taxed by Morocco, and the UAE levies no personal income tax on salaries.
What is a tax residency certificate and why do I need it?
A tax residency certificate (TRC) is official proof, issued by the UAE Federal Tax Authority, that you are a UAE tax resident. Moroccan payers require it to apply the reduced treaty withholding rate instead of the higher domestic rate. Without it, you are over-withheld.
Does the Morocco-UAE treaty reduce withholding on dividends and interest?
Yes. The treaty caps the Moroccan withholding rates on income paid to UAE residents below the domestic levels for several income types, and the UAE then relieves any remaining double taxation. The exact cap depends on the income type.
Since the UAE introduced a 9% corporate tax, will my business be taxed twice?
Not if the treaty is applied correctly. Since 1 June 2023 the UAE taxes business profits above the threshold at 9%; the Morocco-UAE treaty's residency, permanent-establishment and withholding rules prevent the same profits being taxed fully in both countries. A residency certificate and proper structuring are essential.
How do I reclaim Moroccan tax withheld above the treaty rate?
File a refund request (demande de remboursement) with the DGI, attaching your UAE residency certificate and proof of the Moroccan withholding. See our Morocco tax refund guide for the step-by-step procedure.
Disclaimer
This article explains the Morocco-UAE tax relationship for general information only and does not constitute tax, legal, or investment advice. Treaty rates, definitions, and procedures change, and individual situations vary. Always confirm current rules with the Direction Générale des Impôts (DGI), the UAE Federal Tax Authority, or a qualified cross-border tax advisor before acting.
Marouan focuses on corporate taxation, VAT, and business compliance in Morocco. He writes practical guides that help entrepreneurs and companies navigate the Moroccan tax system with confidence.
