Similar to the tax system of France, corporate tax is one of the main direct tax revenue sources for the Moroccan government. Moroccan corporate tax is regulated by the general tax code, which is regularly update with provisions from finance law.
On January 1, 2019 Morocco adjusted the corporate tax rate. This adjustment specifically targets the minimum contribution rate and will be retroactively applied to company since the start date of operations. No effective date was outlined for this adjustment during its initial implementation, according to article 163-II-A of the General Tax Code.
A retroactively billable tax rate adjustment was contrary to many experts in the field, citing the universal principle of non-retroactivity of laws. As a result, the tax reform included a one-year extension to tax payers.
Applicable corporate tax adjustments in 2019 are as follows:
- Corporate tax scale adjustment
- Establishment of social security benefit contribution funds
- Elimination of certain fiscal systems in coordination centers
- Application of double taxation treaties
In 2018, new progressive corporate tax rates were introduced. The progressive tax rates included tax incentives for companies in certain industries such as exports, private education, hotels and more. For entities in these sectors, the tax rate is limited to a flat 17.5% for variable amounts of time, even for profits exceeding one million DHS of net profit.
Net Profit Tax Rate
| Taxable Net Profit | Tax Rate |
| ≤ 300,000 | 10% |
| 300,000 to 1,000,000 | 17,50% |
| ≥ 1,000,000 | 31% |
An additional corporate tax incentive offered to certain companies is a reduced tax rate of 8.75% when operating within Morocco’s free trade zones.
To best understand and maximize on corporate tax rate knowledge it is recommended to consult with a tax advisor because every company and situation is unique. Whether preparing for Morocco’s statutory filings or needing assistance navigating corporate tax law, Auxadi has a global team of experts at your service.