Publié le 24/05/2023

Taxation in Morocco


Taxation in Morocco


Taxes has an important part in the Moroccan economy; Moroccan taxes are divided into 4 main parts: direct taxes, value-added taxes, registration fees and stamps.

I.              Income Taxe

Individuals who have their tax residence in Morocco are subject to an individual income tax on their worldwide income.

Individuals not having their tax residence in Morocco are subject to tax only on Moroccan-sourced income.

The individual income tax is calculated on the basis of the following progressive scale (with higher income earners paying a higher rate of tax) :

Annual taxable income (MAD)  Tax rate (%)
0 to 30,000 Exempted
30,001 to 50,000 10
50,001 to 60,000 20
60,001 to 80,000 30
80,001 to 180,000 34
More than 180,000 38


They are many types of revenues subject to individual income tax and mostly the following categories:

Salary revenues: The taxable salary corresponds to the gross wage, including benefits and payments in kind or cash, granted to the employee reduced by the amount of social security contributions paid by the employee.  We notice that there are some exemptions are provided.

Professional revenues: the tax basis of professional revenues is the difference between trading income or the professional income and all the professional expenses.

Revenues derived from agricultural farms.

Real estate revenues and capital gains: the rental income is subject to individual income tax (based on the gross amount) at the following rates:

  • 10% for annual gross revenues lower than MAD 120,000;
  • 15% for annual gross revenues equal to or exceeding MAD 120,000.

Revenues and capital gains on financial instruments.

Don’t hesitate to contact our chartered accountants to provide you a simulation of your income tax by sending your email to:

II.          Corporate – Taxes

Businesses operating in Morocco are subject to corporate tax on their profits. The difference between the trading income and expenses of the companies is considered the base if the corporate tax. Business expenses incurred in the operation of the business are generally deductible unless specifically excluded.

The CIT rates applicable for FY 2022 & FY 2023 are as follows:

There is different corporate income tax (CIT) rate applicable for specific cases like:

  • Industrial activities;
  • Companies with « CFC » status
  • Companies operating in Industrial Acceleration Zones (ZAI)
  • credit institutions and similar organizations, Bank Al Maghrib, CDG and insurance and reinsurance companies;

the CIT cannot be lower than a minimum contribution of 0.25% calculated on the total revenue for all companies regardless of the reported current result. The minimum contribution (CM) is based on turnover, income from interest, subsidies, bonuses or donations received. The CM is not payable by companies during their first 36 months of operation.

The calendar year is normally the fiscal year although a company may opt for a different fiscal year. Accounts for income tax purposes must be filed within three months after the end of the relevant accounting period.

Morocco corporate tax is payable in four equal instalments, based on the prior year’s assessment. The actual amount payable is adjusted in the three months following the end of the accounting period.

Don’t hesitate to contact our chartered accountants to provide you a simulation of your future CIT in Morocco by sending your email to:

III.      VAT (Value Added Tax)

In Morocco we apply 20% VAT as standard rate on all commercial transactions; for certain activities and goods we applied a reduced rate of 7%, 10% and 14%

The standard VAT rate of 20% applies to all suppliers of goods and services, except those taxed at other rates or those who are exempt.

The suppliers of goods and services must add VAT to their net prices. Where the purchaser is also liable for VAT, input VAT may be offset against output VAT.

All persons subject to VAT must make the VAT declaration monthly if the turnover exceed 1.000.000 MAD and quarterly if the turnover is less than 1.000.000 MAD.