Payment terms in Morocco: what law 69-21 requires

This summary covers the general rules of law 69-21 and its published commentary. Thresholds, timelines and rates may change: refer to the official texts and your accountant before any decision.

The framework: law 69-21

Law 69-21, which amends the Commercial Code (law 15-95), has tightened the rules on business-to-business payment terms since 2023. It sets a default term, caps negotiated terms, requires a periodic declaration of invoices paid late and provides for fines paid to the Treasury.

The aim is to reduce forced inter-company credit, which weighs especially on the cash of small suppliers to large buyers.

Default and maximum terms

According to published commentary, the starting point depends on the nature of the parties and the delivery or performance date, and the supplier must issue its invoice no later than the end of delivery or service. Specific terms may exist for some sectors under dedicated texts. Check the starting point that applies to you with your adviser.

Who is concerned?

The rules target traders and companies operating in Morocco, with a turnover threshold below which the obligations do not apply (two million dirhams excluding tax according to commentary on the law). Declaration obligations were rolled out progressively by company size.

The declaration to the DGI

Companies concerned must periodically declare, electronically, invoices unpaid or paid late. The declaration is certified by a professional: statutory auditor for the largest companies, chartered or licensed accountant for others.

A declaration is expected even when no invoice is late. Failure to file, late filing or incomplete filing is penalised by flat fines that increase with turnover.

Fines for late payment

Late payment triggers a monetary fine calculated on the amount of invoices paid late: a rate equal to Bank Al-Maghrib’s key rate for the first month of delay, then 0.85% per additional month or part-month.

On large volumes these amounts become significant, not counting the administrative cost of tracking and declaring.

How to organise to meet the deadlines

Most delays are not caused by a lack of cash but by invoices stuck in a process: receipt not entered, price gap not handled, approver away. The most effective levers:

• Record every invoice on arrival, with its date, to calculate the exact due date
• Enter receipts and service confirmations promptly, close to the ground
• Match invoices, orders and receipts automatically
• Route exceptions to the right person with a handling deadline
• Alert on invoices close to their due date before it is too late
• Keep a full history to prepare the periodic declaration

Frequently asked questions