In this article
Paying or receiving cash remains common in Morocco, but the General Tax Code (CGI) regulates it closely. There are three thresholds to know:
- 5,000 DH per day and 50,000 DH per month, per supplier: above these amounts, the expense and the VAT settled in cash are not deductible;
- 20,000 DH per transaction: above this amount, a cash settlement exposes the seller to a 6% fine.
The rules below were checked against the 2026 edition of the CGI published by the Directorate General of Taxes (DGI).
Disclaimer: this article is an educational summary, not legal advice. Tax legislation changes with every finance law. Check the current version of the CGI and have your situation validated by your chartered accountant.
In brief
| Rule | Threshold | Consequence | Legal basis |
|---|---|---|---|
| Expense deduction (IS / IR) | 5,000 DH/day and 50,000 DH/month, per supplier | Above these amounts, the expense settled in cash is not deductible | Art. 11-II CGI (LF 2016 and LF 2019) |
| VAT deduction | Purchases exceeding 5,000 DH/day, up to 50,000 DH/month, per supplier | VAT is not recoverable | Art. 106-II CGI (LF 2016 and LF 2019) |
| Settlement of a transaction | Amount equal to or greater than 20,000 DH | 6% fine borne by the seller or service provider | Art. 193 CGI |
| Accepted cases | Unpaid cheque or bill of exchange; deposit into a bank account | No fine if justified | DGI service note of 06/04/2017; LF 2022 |
1. Deductibility limits: 5,000 DH/day and 50,000 DH/month
Corporate income tax and personal income tax (article 11-II)
Article 11-II of the CGI provides that operating expenses settled by any means other than a traceable one are deductible only up to 5,000 DH per day and per supplier, without exceeding 50,000 DH per month and per supplier. These limits result from the 2016 (no. 70-15) and 2019 (no. 80-18) finance laws; before LF 2019, the monthly limit was 100,000 DH.
The payment methods that are not subject to the limit are: crossed non-endorsable cheque, bill of exchange, magnetic payment instrument, bank transfer, electronic means, or set-off against a claim on the same person, provided it is based on documents dated and signed by both parties.
The text adds that the depreciation of fixed assets acquired under these conditions is not deductible either.
VAT (article 106-II)
Article 106-II applies the same logic to VAT: the tax charged on purchases, works or services whose amount exceeds 5,000 DH per day and per supplier, up to 50,000 DH per month and per supplier, is not deductible when they are not settled by one of the traceable means mentioned above.
A cash payment above the limit therefore costs you twice: the expense is not deducted from your income, and the VAT is not recovered.
Example. You buy from the same wholesaler for 3,200 DH in the morning, then 2,500 DH in the afternoon, in cash. The day's total reaches 5,700 DH: the daily limit is exceeded.
The most common trap is splitting: several small payments to the same supplier. Taken one by one, they seem harmless, but what counts is the total per day and per month.
2. The 6% fine on transactions of 20,000 DH or more (article 193)
Article 193 of the CGI provides that any settlement of a transaction whose amount is equal to or greater than 20,000 DH, made otherwise than by crossed non-endorsable cheque, bill of exchange, magnetic payment instrument, bank deposit or transfer, electronic means or documented set-off, gives rise to a fine of 6% of the transaction amount.
Key points of the text:
- Who pays the fine? The selling company or service provider, during a tax audit. If you pay a supplier in cash, it is the supplier who is penalized, but you also lose deductibility (section 1).
- Which transactions? Those between a company subject to IS and persons subject to IR, IS or VAT acting in the course of their professional activity, as well as those carried out with individuals.
- The threshold applies per transaction. Paying a 25,000 DH invoice in three cash instalments of 8,000 DH changes nothing.
- Exclusion: transactions involving live animals and unprocessed agricultural products, except when they take place between traders.
Example. A 30,000 DH invoice (incl. VAT) collected in cash exposes the seller to a fine of 1,800 DH (30,000 × 6%).
Bank deposit, accepted since LF 2022
Since the 2022 finance law (no. 76-21), the bank deposit is among the settlement methods accepted by article 193. In return, the selling company must declare the client concerned in the statement of sales provided for in articles 20-I and 82-I of the CGI.
3. Accepted cases (DGI service note of 6 April 2017)
In a service note dated 6 April 2017, the DGI clarified the application of article 193 and accepted several situations:
Unpaid cheque or bill of exchange
A seller who has been left with a returned unpaid cheque or bill of exchange may accept settlement in cash, provided they keep the document or bank notice proving the return unpaid.
Cash deposit into the supplier's bank account
The customer may pay the price directly into the supplier's bank account. The deposit slip must include:
- the identity of the individual making the deposit;
- their national ID card (CIN) number;
- the identity of the supplier;
- the number of the invoice, delivery note or document relating to the transaction.
Customers barred from issuing cheques
For these customers, the DGI note points to bank transfer in favour of the supplier.
Without these supporting documents, the accepted case does not hold up in an audit.
4. How Billora applies these rules
Billora checks these thresholds as soon as the payment is entered, for customer receipts as well as supplier disbursements:
- Block at 20,000 DH. As soon as you choose "Cash" on an invoice or expense of 20,000 DH or more (incl. VAT), a red message appears in the form and saving is blocked.
- Justified accepted cases. You can record the payment by indicating the accepted case (unpaid cheque/bill of exchange or bank deposit) and uploading the supporting document. It stays attached to the payment, ready for an audit.
- Limit alert. Each time the amount or date changes, Billora calculates the cash total for the day and the month for that customer or supplier, and displays an orange alert as soon as 5,000 DH/day or 50,000 DH/month is exceeded.
- Real-time tracking. The customer and supplier records, as well as the dashboard, show the cash total for the day (out of 5,000 DH) and for the month (out of 50,000 DH).
5. Best practices
- Favour bank transfer or crossed non-endorsable cheque as soon as the amount becomes significant.
- Do not split a settlement to stay under a threshold: the tax authorities reason per transaction and on a cumulative basis.
- If you accept a bank deposit, remember to declare the client in the statement of sales.
- Keep unpaid notices and deposit slips when you rely on an accepted case.
- Review at the end of each month the customers and suppliers settled in cash.
Official sources
- General Tax Code, 2026 edition — DGI (PDF): articles 11-II, 106-II and 193.
- General Tax Code 2026 — Ministry of Economy and Finance (PDF): same text, official mirror.
- 2019 Finance Law — LOF portal of the Ministry of Finance: law no. 80-18, which set the current limits.
- Directorate General of Taxes: circulars and service notes.
- Official Bulletin — General Secretariat of the Government: publication of the finance laws.
Last updated: September 2026, based on the 2026 edition of the CGI.