A bedroom used for a few hours and a separate professional unit in a house do not tell the same story. We found no general CGI percentage automatically allowing 20%, 30% or 50% of home costs. A defensible method starts with the right to occupy, real use, invoices and a stable allocation key.
Before allocating one dirham
- Check lease, co-ownership, permission and domiciliation.
- Describe the space and actual activity.
- Separate exclusively business, mixed and private costs.
- Choose a key tied to consumption, area or time.
- Retain invoices, calculation, plan and approval.
- Test VAT, withholding and owner relationship separately.
1. Start with rights and reality
Administrative address, domiciliation and physical operations are not synonyms. Check that lease, title, building rules and activity allow the use, especially with customers, stock, signage, noise or staff.
| Situation | Question |
|---|---|
| Quiet office | permitted use and space? |
| Stock at home | security, insurance, permission? |
| Customer visits | access and neighbours? |
| Production | hygiene, nuisance, permit? |
| Company at manager’s home | contract and separate parties? |
| Address only | where does activity actually occur? |
The business address guide separates registered office, contract and operating premises.
2. Classify before allocating
Start with three baskets. A desk bought only for business may be professional but depreciable. A family meal stays private. Internet or electricity may be mixed.
| Cost | Initial reading | Evidence |
|---|---|---|
| Desk/computer | business equipment | invoice and commissioning |
| Dedicated internet | direct business | contract and invoice |
| Family internet | mixed | reasonable use |
| Electricity | mixed | area, power, meter |
| Rent | mixed or company contract | lease and occupation |
| Kitchen repair | usually private | actual link |
| Insurance | covered risks | endorsement |
An asset follows the asset-or-expense test even when physically kept at home.
3. Choose a key that explains consumption
Area may work for rent with a dedicated room; it poorly explains internet. Time may help for shared equipment; it becomes artificial if nobody measures it. Use the best key for each cost and keep it stable until facts change.
- Measure total and business space.
- Describe exclusive or shared use.
- Choose area, meter, user or time.
- Calculate monthly if use changes.
- Exclude family areas.
- Compare outcome with reality.
- Approve the key.
- Keep plan, invoice and worksheet.
A conservative documented key is better than a round percentage copied from a foreign blog.
There is no general ‘30% rule’
An internal key must reflect cost and use. It does not become statutory merely because it is stable or conservative; validate the real file.
4. Contract, VAT and payment
If a company pays rent to the manager or owner, they are two parties: formalise occupation, amount, payment, owner income and possible withholding. Article 106 excludes premises not linked to operations from input VAT; the link and right need validation.
- Document in the correct party’s name.
- Do not pay full family bills without allocation.
- Separate shareholder advance and reimbursement.
- Check insurance and stock risks.
- Review the key on move or hiring.
BelloPOS helps separate business sales and works offline. It does not allocate household rent, electricity or internet.
Mistakes to avoid
- Copying a foreign percentage.
- Mixing registered office and activity.
- Deducting all electricity.
- Missing equipment depreciation.
- Company paying without contract.
- Recovering VAT without link.
Frequently asked questions
What percentage of rent can I deduct?
No automatic general percentage was found. Use a defensible key tied to space and use after validating the contract.
Can I deduct internet?
A dedicated line is simpler; for a family line, document a reasonable business share.
Is furniture an expense?
It may be an asset based on duration, use, materiality and accounting policy.
Can I keep stock at home?
Check lease, permits, insurance, security and physical separation before deduction.
Does BelloPOS calculate the home share?
No. It separates business operations; allocation of household costs stays external.
What to take away
A credible home-office file shows the right to occupy, space, use, invoice, allocation key and review. It does not need a dramatic percentage.
Sources
The figures and rules quoted above come from these pages, read on the date given in the article.
Separate the business first
Keep professional sales, cash and stock distinct from private movements, then allocate home costs in validated accounting.
Read next
Other practical guides on the same subject: