In this page: Corporate Taxes | Accounting Rules | Consumption Taxes | Individual Taxes | Double Taxation Treaties | Sources of Fiscal Information
From MAD 0 to 300,000 | 10% |
From MAD 300,001 to 1,000,000 | 20% |
Above MAD 1,000,000 | 31% (26% for companies performing industrial activities with taxable income under MAD 100 million) |
Minimum contribution | CIT has to be minimum 0.4% (or 0.25% for specific products) of the turnover and other specific revenues (after 36 months of activity) Where the current income, excluding capital allowances, of a company is declared as a loss position for two consecutive years beyond 36-month exemption period, the applicable rate becomes 0.6% |
Social solidarity contribution on the profits of companies with net profit equal to or greater than MAD 1 million |
|
Credit institutions, insurance companies, and Takafoul insurance and reinsurance companies | 37% |
Opt-in tax for contractors engaged in engineering, construction or assembly projects relating to industrial or technical installations | 8% of the contract price (net VAT and other similar taxes) |
Companies operating in the "Free Trade Zones" (for their export turnover) |
Exempt for five years; 8.75% for the next 20 years |
Mining companies | 17.5% |
Hydrocarbon companies | Exempt from CIT for ten years from the beginning of hydrocarbon regular production |
Companies with regional or international head offices as recognised by the Casablanca Finance City regime (after five years of total exemption, for export turnover) | 8.75% (15% if the Casablanca Finance City status is obtained as from 1 January 2020) |
Companies exporting goods and services | 0% for the first five years 17.5% thereafter |
Small-scale agricultural companies | Turnover below MAD 5 million: total exemption |
Hotel companies | Fully exempt on their profits relating to foreign currency turnover for the first five years; 17.5% thereafter |
Banks and holding companies located in offshore zones (for the first 15 years of operation) | Minimum CIT of USD 25,000 or reduced rate of 10% |
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: Doing Business - Latest available data.
The account should be certified annually.
VAT rate for transport, butter and electricity is 14% (same as for butter).
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.
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.
A gift tax is levied at a flat rate of 20%.
Employees have to contribute to the Caisse Nationale de Sécurité Sociale (CNSS) fund, as follows: social allocation 4.48%; mandatory medical care 2.26%.
Any Comment About This Content? Report It to Us.
© eexpand, All Rights Reserved.
Latest update: May 2023