Discover how Moroccan corporate tax works and what it means for your business. This guide explains the tax rates, deductions, and special exemptions available to foreign investors in Morocco
February 7, 2025
• You learn the current Moroccan corporate tax rates, deductions, and exemptions.
• You see how the Finance Law 2023 gradually adjusts rates from 2023 to 2026.
• You gain insight into allowable deductions and special incentives for foreign investors.
• You discover practical steps to maintain compliance with Moroccan tax law.
• You find examples that illustrate how these measures impact your business.
This article explains Moroccan corporate tax using updated figures as of early 2025.
Morocco uses a territorial tax system.
Both resident and nonresident companies pay tax on income earned in Morocco.
If your company has a permanent establishment here, the Moroccan tax rules apply.
Foreign investors benefit from several incentives and special regimes. Ask yourself: How do these rules affect your investment decisions?
Moroccan corporate tax is set on a progressive scale.
The Finance Law 2023 introduced phased changes for companies with fiscal years starting from 2023.
Below is the schedule for standard corporate income tax rates:
These figures reflect recent changes from the Finance Law 2023
Ask: Do these rates align with your business’s profit projections? But, if you are a foreign investor, there are some tax benefits that you should check.
On top of corporate income tax, companies with taxable income above MAD 1 million must pay SSC.
SSC rates are as follows:
This additional contribution helps fund social programs and must be factored into your overall tax planning.
Deductions reduce your taxable income.
Common deductions include:
Fixed assets are depreciated over their useful life.
You can use the straight-line method or a declining-balance method.
Indicative annual rates:
Good record keeping is essential for claiming depreciation.
Interest on loans used for business activities is deductible if the capital is fully paid up.
Deductibility is capped by both the share capital amount and the official annual interest rate set by the Ministry of Finance.
Review your financing structure to maximize this deduction.
Debts that are definitively non-recoverable are deductible.
You must document all collection efforts before claiming the deduction.
Contributions to approved foundations or societies are deductible.
Contributions to community enterprises are capped at 0.2% of your turnover.
Plan these contributions as part of your social responsibility strategy.
Expenses for developing and incorporating your company are capitalized and depreciated over five years.
Losses from these start-up costs can be carried forward for four years.
Ensure your early-stage costs are well documented.
Regular operating expenses such as rent, salaries, and utilities are deductible.
Maintain proper documentation to support all deductions.
Morocco offers several tax incentives to encourage foreign investment.
New companies may be exempt from business tax for the first five years.
Tourist establishments can enjoy a five-year corporate tax exemption if conditions are met.
This enables reinvestment in growth during early years.
Companies in designated zones may be exempt from business tax for up to 15 years and receive a reduced corporate tax rate thereafter.
Evaluate if relocating to such zones can lower your tax burden.
Companies with CFC status receive a corporate tax exemption for five years.
After the exemption period, a reduced rate applies.
Determine if your business qualifies for CFC status.
Foreign contractors in engineering, construction, or assembly projects may opt for an 8% tax rate (net of VAT).
Compare the standard corporate tax with the 8% option for high-value projects.
Ask: Which incentive best suits your company’s profile?
Losses from any fiscal year can be carried forward for four years.
Losses related to depreciation may be carried forward indefinitely.
Note: Loss carryback is not permitted.
This policy helps smooth out fluctuating profits over time.
Certain payments are subject to withholding tax:
Dividends: Typically 10% for nonresident recipients, unless a treaty reduces the rate.
Interest: Interest paid to nonresidents is usually taxed at 10% (a final tax).
Royalties: Subject to a 10% withholding tax unless reduced by a tax treaty.
In cross-border transactions, ensure you review applicable double taxation treaties to avoid double taxation.
Ask: Have you factored in withholding tax when planning international payments?
Although this article focuses on corporate tax, individual income tax in Morocco is also progressive:
• Up to MAD 30,000: 0%
• MAD 30,001–50,000: 10%
• MAD 50,001–60,000: 20%
• MAD 60,001–80,000: 30%
• MAD 80,001–180,000: 34%
• Above MAD 180,000: 38%
These rates are useful to understand the overall tax landscape.
Staying compliant is essential to avoid penalties.
Key filing requirements include:
Does your compliance system meet the latest Moroccan tax requirements?
Investing in Morocco means you become part of a growing and stable market.
The tax system is designed to encourage foreign investment with attractive incentives.
Plan your business operations with tax efficiency in mind and stay informed about any regulatory changes.
Integrate these insights into your business plan.
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