In this page: Corporate Taxes | Accounting Rules | Consumption Taxes | Individual Taxes | Double Taxation Treaties | Sources of Fiscal Information
Corporate income tax rates | 2023 |
From MAD 0 to 300,00 | 12.5% |
From MAD 300,000 to 1 million | 20% |
From MAD 1 million to 100 million | 28.25% |
Above MAD 1 million | 32% |
Companies carrying out industrial activities | From MAD 0 to 1 million: 24.5% Above MAD 1 million: 32% |
Minimum contribution | 0.25% 0.15% for operations carried out by commercial companies for sales of petroleum products, gas, butter, oil, sugar, flour, water, electricity, and medicines |
Social solidarity contribution on the profits of companies with net profit equal to or greater than MAD 1 million (calculated on the net taxable profit of the previous fiscal year) |
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WHT rate applicable to income from shares, units and similar income | 13.75% in 2023 |
Special rates | 20% for:
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Companies with Casablanca FC status | Exempt for the first five years following the date of their incorporation |
The business tax ("taxe professionnelle") consists of a tax on the rental value of business premises (rented or owned) and fixed assets. The tax rates range from 10% to 30%, with an exemption for the five first years of activity. The rental value is exempted for the portion of the cost exceeding MAD 50 million.
A Payroll tax (called professional training tax) is imposed on the gross monthly remuneration of employees that are subject to social security contributions, at a rate of 1.6%. Morocco's mandatory social security regime is managed by the CNSS (Caisse Nationale de Sécurité Sociale). Employers' contributions are as follows: family allocation 6.40%; social allocation 8.60% (with a computation base capped at MAD 6,000); professional tax 1.60%; mandatory medical care 4.11%.
Morocco | Middle East & North Africa | United States | Germany | |
---|---|---|---|---|
Number of Payments of Taxes per Year | 6.0 | 20.8 | 10.6 | 9.0 |
Time Taken For Administrative Formalities (Hours) | 155.0 | 204.0 | 175.0 | 218.0 |
Total Share of Taxes (% of Profit) | 45.8 | 32.1 | 36.6 | 48.8 |
Source: The World Bank - Doing Business, Latest data available.
The account should be certified annually.
The VAT rate for transport, butter, services rendered by any direct selling agent or insurance broker in respect of contracts brought by it to an insurance business, and electricity is 14%.
A reduced rate of 7% applies to water; rental of water and electricity meters; pharmaceutical products and non-recoverable packaging of pharmaceutical products.
Zero-rated items include exported goods and services; goods placed under customs suspensive regime; fertilizers; machinery for exclusively agricultural use; investment goods recorded as fixed assets, acquired by taxpayers, for a period of 36 months from the start of the activity, excluding vehicles acquired by car rental agencies.
Progressive income tax | From 0 to 38% |
Up to MAD 30,000 | 0% |
From MAD 30,001 to 50,000 | 10% |
From MAD 50,001 to 60,000 | 20% |
From MAD 60,001 to 80,000 | 30% |
From MAD 80,001 to 180,000 | 34% |
Above MAD 180,000 | 38% |
Charitable contributions are deductible if granted to organisms and societies expressly provided by the tax law. Loan interests relating to the acquisition of the main house are tax-deductible up to the limit of 10% of the taxable global revenue.
As per the provisions of the 2023 finance act, certain indemnities such as dismissal indemnity, compensation for voluntary departure, and compensation for damages awarded in the event of dismissal are exempt from taxation up to a maximum limit of MAD 1 million. However, if an individual receives multiple indemnities, the combined total amount of such indemnities exempted from income tax cannot surpass the aforementioned limit of 1 million.
Professional expenses incurred in the operation of the business are generally deductible unless specifically excluded.
Municipal tax is levied at a rate of 10.5% of the rental value of real estate assets situated within urban districts, and 6.5% of the rental value of real estate assets in peripheral zones of urban districts.
Employees have to contribute to the Caisse Nationale de Sécurité Sociale (CNSS) fund, as follows: social allocation 4.48%; mandatory medical care 2.26%.
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Latest Update: September 2023