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Retained

  • Statutory Tax Rate 31
  • Surtax Based on Taxable Income 0
  • Surtax Based on Statutory Tax 0
  • Surtax Deductible from Taxable Income 0
  • Statutory Tax Deductable 0
  • Effective Tax Rate 31

Statutory Tax Rate

Effective from 1 January 2022, Morocco introduced a change in the application of the standard corporate tax brackets and rates schedule such that the schedule is "proportional" instead of "progressive", i.e., if a taxpayer's taxable income falls within a particular bracket, the total taxable income is subject to that rate.

The ‘proportional’ corporate tax brackets and rates are as follows:

Taxable Income (in MAD)

Rate (%)

Up to 300,000

10

300,001 – 1,000,000

20

Over 1,000,000

31

The top slab rate stands reduced to 20% (instead of 31%) in case of certain qualifying companies including companies operating in export, tourism, real estate development, education, and specific mining activities. Further, the top slab rate stands reduced to 26% (reduced from 28% effective 1 January 2022) in case of industrial companies whose net profit is less than MAD 100 million. The 26% rate applies if the taxable income of such companies exceeds MAD 1 million.

A flat 37% corporate income tax rate applies for banks, financial institutions, and insurance companies.

Additionally, the social solidarity contribution for the year 2022 applies as follows on the profits of companies with a net profit equal to or greater than MAD 1 million:

  • 1.5% for companies with taxable profits between MAD 1 million and MAD 5 million;
  • 2.5% for companies with taxable profits between MAD 5 million and MAD 10 million;
  • 3.5% for companies with taxable profits between MAD 10 million and MAD 40 million; and
  • 5% for companies with taxable profits of MAD 40 million and more.

Previously, effective 1 January 2021, the social solidarity contribution applied at the rate of 1.5% for companies with taxable profits between MAD 1 million and MAD 5 million; 2.5% for companies with taxable profits between MAD 5 million and MAD 40 million; and 3.5% for companies with taxable profits exceeding MAD 40 million.

Regardless of a company's taxable profit, the amount of tax payable by a company for any financial year may not be less than a minimum amount. The minimum levy is payable at the rate of 0.4% on annual turnover (reduced from 0.5% effective 1 January 2022); a special 0.25% rate applies for certain sectors. A 0.6% rate applies to companies reporting a negative result (excluding depreciation) in two consecutive fiscal years. The minimum levy does not apply during the first 36 months of a company’s operations.

Effective 1 January 2020, the standard tax rate for Casablanca Finance City (CFC) regime is 15% (increased from 8.75%).