how consultants escape taxes

These independent engineers and consultants, estimated at 5,000, pay no taxes or social security contributions, although they provide services to large companies, especially banks. Their modus operandi is to get paid through intermediary and umbrella companies in order to avoid their tax and social obligations, the report says The economist which exposes large-scale tax fraud and estimates losses for the state at several hundred million dirhams.

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Intermediaries “play the role of intermediaries between clients looking for IT skills and consultants who have those skills,” the release said. Which intermediation companies “identify these consultants and place them with their clients for medium- or long-term missions, depending on the needs of each user structure, but without being recruited?”

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The phenomenon is reaching a worrying scale, the specialized daily warns, emphasizing that these independent consultants represent 30 to 70% of the IT staff of large companies. “The phenomenon is reminiscent of certain employees of service providers who were offered self-employed status to pay a 1% IR instead of the 38% marginal rate. Before the legislature becomes aware of the abuse of this regime through false employment.”