Morocco Corporate Tax Guide 2026

Overview — Corporate Tax in Morocco (IS)

Morocco's corporate income tax (IS) is governed by the Code Général des Impôts (CGI). Resident companies are taxed on worldwide income. Non-resident companies with a permanent establishment (PE) in Morocco are taxed on Moroccan-source income attributable to the PE. The corporate tax year follows the calendar year unless the company uses a different fiscal year approved by the DGI. Corporate tax returns (Déclaration de l'IS) must be filed by 30 April of the following year.

Corporate Tax Rates

Morocco applies differentiated corporate tax rates depending on the type of business and activity:

• General rate: 20% for most companies (reduced from 31% in recent years as part of tax reform)
• Banks and insurance companies: 31% (regulated financial institutions)
• Manufacturing exporters: 10% for the first 5 consecutive years of operation (20% thereafter)
• Agricultural companies: Fully exempt for the first 5 years, then 17.5%
• Hotels and tourism facilities: 17.5% for the first 5 years

The progressive reduction from 31% to 20% for non-financial companies has been implemented in stages since 2022, making Morocco more competitive for foreign direct investment.

SME Progressive Rate

Small and medium enterprises benefit from a reduced progressive rate on the first slice of profit:

• 15% on the first MAD 100,000 of net taxable profit
• 20% on the portion of profit exceeding MAD 100,000 (or the standard rate if higher)

This preferential rate applies to companies with annual turnover not exceeding MAD 50 million. The rate reduction is automatic and does not require prior approval.

Minimum Tax (Cotisation Minimale)

Morocco imposes a minimum tax (Cotisation Minimale) on companies that are in a loss position or have low profitability. The minimum tax is calculated at 0.25% of the company's gross turnover (0.5% for certain activities). The minimum tax is creditable against future IS liability for up to 3 years. Exemptions apply for start-ups (first 3 years) and companies operating in certain sectors (agriculture, fishing, export).

Tax Incentives and Free Zones

Morocco offers several tax incentive regimes for businesses:

• Casablanca Finance City (CFC): Companies established in CFC benefit from 0% corporate tax for the first 5 years, then 8.75% for the next 20 years, and 20% thereafter. Dividends and capital gains from foreign sources are exempt.
• Export Processing Zones: Companies in export zones (Tanger Med, Atlantic Free Zone) benefit from 0% corporate tax for the first 5 years, then 8.75% — same as CFC regime.
• Regional investment centres: Reduced rates for companies established in certain priority regions.
• R&D tax credit: 20% of R&D expenditure (capped at MAD 10 million per year).

Dividend Withholding Tax

Dividends paid by Moroccan companies are subject to withholding tax at source (Retenue à la Source sur Dividendes):

• To residents (individuals): 15% withholding (final tax)
• To resident companies: Exempt from withholding (dividends are included in taxable income)
• To non-residents: 15% withholding, subject to reduction under applicable tax treaties

Loss Carryforward

Tax losses can be carried forward indefinitely, but the annual offset is limited to 50% of the taxable income in any given year (60% for companies in the CFC regime). There is no carryback of losses. For companies undergoing restructuring or changing ownership, loss utilisation may be restricted.

FAQs

What is the effective tax rate for a manufacturing exporter?

For the first 5 years of operation, qualifying manufacturing exporters pay 10% IS. After 5 years, the rate reverts to 20%. The minimum tax (Cotisation Minimale) of 0.25% of turnover may still apply if it exceeds the IS calculated on profits.

Is Morocco's corporate tax system competitive for holding companies?

Yes, particularly through the Casablanca Finance City (CFC) regime, which offers a 0% rate on foreign-source dividends and capital gains, and a reduced IS rate of 8.75% after the first 5 years. Morocco has an extensive treaty network (over 70 treaties).

Are there transfer pricing rules in Morocco?

Yes, Morocco has transfer pricing rules aligned with OECD guidelines. Documentation requirements apply for transactions with related parties exceeding MAD 10 million. Country-by-country reporting (CbCR) applies for groups with consolidated revenue over MAD 2 billion.

Disclaimer

This guide provides general information about Moroccan corporate tax (IS) for the 2026 tax year. Tax laws and rates may change. Always consult with a qualified Moroccan tax advisor (conseil fiscal) or the DGI directly for advice specific to your business. InvestmentKit does not provide tax advice.