Taxes in Morocco: A 2026 Guide for Business and Individuals
Morocco's tax system is administered by the Direction Générale des Impôts (DGI) and codified in the Code Général des Impôts (CGI), updated each year by the annual Finance Law (Loi de Finances). Since 2021, a multi-year reform launched under Framework Law No. 69-19 has reshaped the main taxes, with several measures reaching their target levels in 2026.
The headline changes completed by the 2024-2026 cycle include a convergence of corporate income tax toward two main rates, a simplification of value added tax into a standard and a single reduced rate, and a rebuilt personal income tax scale with a higher tax-free threshold. This guide summarises the principal taxes affecting companies and individuals as of the 2026 Finance Law.
The figures below are indicative and current to June 2026. Rates and thresholds change with each Finance Law, and specific situations can depend on activity, company size and tax residence, so professional advice and the latest CGI text should always be confirmed before acting.
Corporate income tax (Impôt sur les Sociétés, IS)
Corporate income tax applies to the worldwide profits of companies resident in Morocco and to the Moroccan-source profits of non-resident companies. Following the reform introduced by the 2023 Finance Law (Law No. 50-22), the rate structure has progressively converged over 2023-2026 toward a simplified target system.
As of the 2026 Finance Law, the standard target rates are approximately 20% for companies with net taxable profit below MAD 100 million and approximately 35% for companies at or above MAD 100 million. A higher rate of around 40% applies to credit institutions, Bank Al-Maghrib, the Caisse de Dépôt et de Gestion, and insurance and reinsurance companies.
The convergence is phased, so transitional rates applied during the 2023-2026 period as the brackets moved toward these targets. Companies should confirm the exact rate applicable to their fiscal year, since the schedule depends on profit level and sector. There is also a minimum contribution (cotisation minimale) calculated on turnover, payable even in a loss-making year, subject to the rules in force.
Value added tax (TVA)
Value added tax (Taxe sur la Valeur Ajoutée) is a consumption tax charged on most goods and services. The 2024-2026 reform simplified the rate structure, and by 2026 it has largely converged toward two main rates.
- 20% — standard rate, applicable to most goods and services.
- 10% — reduced rate, covering items such as certain food and beverage services, banking and financial operations, and selected utilities.
The former intermediate rates of 7% and 14% have been progressively eliminated between 2024 and 2026, with the affected goods reclassified either to the 10% reduced rate or to exempt status. A range of goods and services are exempt under Articles 91 and 92 of the CGI, with some exemptions carrying the right to deduct input VAT (for example certain pharmaceutical products) and others not (for example certain school supplies). A 0% (export) rate applies to exported goods and services, allowing recovery of input VAT. The 2026 Finance Law also introduces a phased VAT withholding-at-source mechanism for larger firms.
Personal income tax (Impôt sur le Revenu, IR)
Personal income tax applies to salaries, professional, property, investment and agricultural income. The 2026 Finance Law (Law No. 50-25) overhauled the progressive scale and raised the tax-free threshold from MAD 30,000 to MAD 40,000 per year, while reducing the top marginal rate.
The progressive annual brackets applicable as of 2026 are set out below.
| Annual taxable income (MAD) | Rate |
|---|---|
| Up to 40,000 | 0% (exempt) |
| 40,001 to 60,000 | 10% |
| 60,001 to 80,000 | 20% |
| 80,001 to 100,000 | 30% |
| 100,001 to 180,000 | 34% |
| Over 180,000 | 37% |
The reform also enhanced certain deductions, including for family dependants and retirement. Salaried income is generally taxed at source by the employer through monthly withholding.
Main tax rates at a glance
The table below summarises the principal rates as of the 2026 Finance Law. All figures are indicative and should be verified against the current CGI.
| Tax | Indicative rate (2026) |
|---|---|
| Corporate income tax (IS), standard | ~20% (profit below MAD 100m) |
| Corporate income tax (IS), large profits | ~35% (profit MAD 100m and above) |
| Corporate income tax, banks and insurers | ~40% |
| VAT (TVA), standard | 20% |
| VAT (TVA), reduced | 10% |
| Personal income tax (IR), top rate | 37% |
| Withholding tax on dividends | 10% |
| Withholding tax on interest (non-residents) | 10% |
Withholding taxes on dividends and interest
Dividends distributed by Moroccan companies are subject to a withholding tax that the 2023 Finance Law phased down from 13.75% to 10% by 2026. Dividends paid between Moroccan companies subject to corporate tax are generally exempt where the recipient provides an attestation of ownership of the shares.
Interest paid to non-resident lenders is generally subject to a withholding tax of approximately 10%, subject to reduction under an applicable tax treaty. Interest on certain long-term foreign-currency loans (maturity exceeding ten years) may be exempt. Companies that establish here often coordinate these flows through local banking arrangements.
Social contributions (CNSS)
Employers and employees contribute to the national social security fund, the Caisse Nationale de Sécurité Sociale (CNSS), covering family allowances, short- and long-term benefits, and the mandatory health insurance scheme (AMO).
Employee contributions amount to roughly 8-9% of gross pay, with the pension portion capped on a monthly salary ceiling (around MAD 6,000 for the relevant branch). Employer contributions are higher, typically in the range of 15-19% depending on the benefits covered. These contributions are mandatory for salaried employment and are declared and paid monthly. Exact rates and ceilings are set by CNSS regulation and should be confirmed before running payroll.
Free zones, Industrial Acceleration Zones and Casablanca Finance City
Morocco offers preferential regimes to attract export-oriented and financial activity. These are a core part of the country's investment proposition and are explained further in the guide to free zones.
- Industrial Acceleration Zones (IAZ), the successors to the former free zones, typically provide a corporate income tax exemption for the first five years of operation, followed by a reduced rate of around 15%, together with long-term exemption from the business tax on real estate and equipment.
- Casablanca Finance City (CFC) offers eligible financial and service companies a corporate income tax exemption for five consecutive fiscal years, then a specific rate of around 20% regardless of profit level, and an exemption from withholding tax on dividends paid to non-residents.
Eligibility, qualifying activities and conditions are defined by statute and administered through the relevant authorities. Firms in financial services should review the financial services framework alongside these incentives.
Registration duties, filing obligations and deadlines
Registration duties (droits d'enregistrement) apply to deeds such as company formation, capital increases, share transfers and real-estate transactions, at rates that vary by transaction type. These are usually settled at the point of company formation or transfer.
For corporate income tax, companies must file an annual return and pay any balance due within three months after the close of the fiscal year, having made quarterly advance instalments during the year. VAT returns are filed monthly or quarterly depending on turnover, and IR on salaries is withheld and remitted monthly by employers. Self-employed and professional taxpayers file an annual IR return, generally by the statutory spring deadline. Most filing and payment is now carried out electronically through the DGI's online portal. Wider compliance and licensing requirements are covered in the regulations guide.
Related guides
Frequently Asked Questions
What is the corporate tax rate in Morocco?
As of the 2026 Finance Law, corporate income tax (IS) converges toward approximately 20% for companies with net taxable profit below MAD 100 million and approximately 35% for those at or above MAD 100 million. Banks and insurers are taxed at around 40%. The exact rate depends on the fiscal year and sector and should be confirmed against the current CGI.
What is the VAT rate in Morocco?
The standard VAT (TVA) rate is 20%. Following the 2024-2026 reform, a single reduced rate of 10% applies to certain goods and services, while the former 7% and 14% rates were phased out. Exports are zero-rated, and various goods and services are exempt under Articles 91 and 92 of the CGI.
What are the income tax brackets in Morocco for 2026?
The 2026 progressive IR scale is: 0% up to MAD 40,000, 10% from 40,001 to 60,000, 20% from 60,001 to 80,000, 30% from 80,001 to 100,000, 34% from 100,001 to 180,000, and 37% above MAD 180,000. The tax-free threshold was raised from MAD 30,000 to MAD 40,000.
How are dividends taxed in Morocco?
Dividends paid by Moroccan companies are subject to a withholding tax of approximately 10% as of 2026, reduced progressively from 13.75% under the 2023 reform. Dividends between Moroccan companies subject to corporate tax are generally exempt where an ownership attestation is provided. Treaty rates may apply to non-residents.
What tax benefits do free zones offer in Morocco?
Industrial Acceleration Zones typically grant a corporate tax exemption for the first five years, then a reduced rate of around 15%, plus long-term business-tax relief on real estate and equipment. Casablanca Finance City offers a five-year exemption followed by a specific rate of around 20% and dividend withholding relief for non-residents.
Does Morocco have double taxation treaties?
Yes. Morocco has signed a wide network of double taxation treaties with countries across Europe, Africa, the Middle East and beyond. These treaties allocate taxing rights and can reduce withholding tax on dividends, interest and royalties. The applicable treaty should be checked for each cross-border payment, as reduced rates often require documentation.
When are tax returns filed in Morocco?
Companies file the annual corporate tax return and settle any balance within three months of the fiscal year-end, with quarterly advance instalments during the year. VAT returns are monthly or quarterly depending on turnover, employer IR withholding is remitted monthly, and individual IR returns are generally due by the statutory spring deadline. Most filing is electronic via the DGI portal.
Do foreigners pay tax on foreign income in Morocco?
It depends on tax residence. Individuals who are tax-resident in Morocco are taxed on their worldwide income, while non-residents are taxed only on Moroccan-source income. Residence generally turns on having a permanent home, the centre of economic interests, or spending more than 183 days in Morocco within a year. Treaty rules may override these tests.