Professionals and the self-employed: AMO and pension contributions are now deductible

Framework law No. 09-21 extended social protection to non-salaried workers. They now belong to two schemes run by the National Social Security Fund (CNSS):

• compulsory health insurance (AMO) for professionals, self-employed workers and non-salaried people in private practice, governed by Law No. 98-15;
• the pension scheme for the same groups, set up by Law No. 99-15.

Until 2023, one tax question had no clear answer: could these contributions be deducted from business income? The Finance Act (Loi de Finances) 2024 settles it in the taxpayer’s favour.

What the Finance Act 2024 provides

Articles 35 and 38-II of the General Tax Code (CGI) have been extended. Contributions paid under the following schemes are now deductible from actual net profit and simplified net profit:

• the AMO scheme under Law No. 98-15;
• the pension scheme under Law No. 99-15.

The measure applies to annual overall income returns filed from 1 January 2024. In practice, it therefore first applies to the return of 2023 income filed in 2024.

Who benefits?

Individuals subject to personal income tax (IR) on their business income under:

• the actual net profit regime (RNR);
• the simplified net profit regime (RNS).

Taxpayers under the single professional contribution (CPU) or the self-employed scheme (auto-entrepreneur) are taxed on a flat-rate basis or on turnover. Deducting actual expenses does not apply to them.

What remains non-deductible

DGI circular (note circulaire) No. 735 restates the general rule. Apart from these social security contributions, amounts drawn as staff costs by a sole trader, or by the managers of de facto partnerships, joint ventures, general partnerships (SNC) and limited partnerships, are not deductible. A salary the owner pays themselves remains an appropriation of profit, not an expense.

An example

An architect practises as a sole trader under the actual net profit regime. Her 2023 profit before contributions is MAD 420,000. In 2023 she paid her AMO and pension contributions to the CNSS under Law No. 98-15 and Law No. 99-15.

In her overall income return filed in 2024, she deducts these contributions from her business profit. Her net taxable income falls by the same amount. She is taxed in the top marginal band of the scale then in force (38%), so the tax saving is close to 38% of the contributions deducted (assuming her income stays in that band after the deduction).

Good habits

1. Keep the supporting documents: CNSS statements and receipts, showing the period covered.
2. Allocate contributions to the right year: under accruals accounting (RNR), a contribution belongs to the period it covers.
3. Keep the schemes separate: contributions to an optional supplementary pension contract follow their own deduction rules, which are distinct from this measure.
4. Revisit your tax regime: if you are close to the thresholds, deductible contributions can tip the balance between the RNS and the RNR. Factor this into your choice.

The link with social cover

The measure follows the logic of the reform: making membership cheaper for the self-employed, so that they contribute regularly and keep their health and pension rights. For a professional practice, it is also a good moment to review the CNSS position of the practitioner and their staff.

Our Payroll & HR and Tax & legal teams help professional practices meet their tax and social security obligations. To discuss your situation, contact us.