Accounting Information in Morocco: A Practical Guide | Upsilon Consulting

In brief: Law 9-88 requires merchants to keep accounts, with an exemption for auto-entrepreneurs. Statements follow the CGNC where applicable; court filing depends on the company form. A chartered accountant supports reliable accounting.

Accounting Information

In Morocco, accounting law 9-88 imposes a transparency principle on all merchants. Commercial companies must:

• CGNC-compliant statements: prepare accounting information in the form of financial statements in compliance with CGNC standards;
• Company filing: SAs file their financial statements and statutory auditor’s report within two months of approval; companies governed by Law 5-96 file the statements and, where applicable, the report within thirty days of approval.

The financial statements required by accounting law may follow either the standard model or the simplified model. The standard model is mandatory for companies with revenue exceeding 10 million dirhams.

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Definition of Accounting Information

Law 9-88 requires natural and legal persons with merchant status to keep accounts. Auto-entrepreneurs are exempt; other entities follow the obligations specific to their status and activity. This accounting information consists of collecting financial data (purchases, sales, cash flows, etc.) and recording them in compliance with accounting principles.

Companies subject to filing obligations make their accounts available at the court registry under their own legislation.

Every SA must appoint a statutory auditor. For SARLs, SNCs and SCSs, appointment is mandatory when turnover excluding VAT exceeds 50 million dirhams at year-end. The report accompanies the filed accounts and may contain an unqualified or qualified opinion or a refusal to certify.

The obligation to publish accounting information should not be confused with the obligation to prepare tax accounts.

The normal model comprises the following statements. Merchants whose annual turnover does not exceed 10 million dirhams are exempt from the ESG, financing table and ETIC and may use the simplified model:

• Balance sheet: the statement of assets, liabilities, and equity
• Income statement: summary of revenue and expenses for the period
• Statement of management balances: key financial aggregates
• Financing table: analysis of cash flows and funding sources
• ETIC: the Statement of Additional Information providing supplementary disclosures

Why Is Financial Reporting Required?

Throughout their existence, companies establish relationships with multiple stakeholders. These stakeholders include, for example, the tax authorities, suppliers, customers, banks, investors, etc.

All these stakeholders are interested in obtaining information about the company’s financial health.

Accounting information is particularly useful for these partners in making decisions (granting credit, collecting taxes, etc.).

These partners are referred to as users of accounting information.

For example, for investors, accounting information enables decision-making: increasing capital, distributing dividends. For suppliers: granting trade credit, requesting guarantees, etc.

The law therefore penalizes any irregularity in the maintenance of accounting information, which must scrupulously respect accounting principles.

Directors are personally liable for the accounts they file with the court registry. They have the obligation to ensure that these accounts are accurate, sincere, and reflect in all material respects a true and fair view of the company’s business. One best practice is to engage professionals to conduct independent audits even in the absence of a legal obligation.

This liability is heightened for companies that issue securities to the public. Since they benefit from public funds, they are subject to stricter controls (two statutory auditors, oversight by the AMMC, etc.).

Accounting: What Is It?

Accounting Principles in Morocco: What You Need to Know

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In the complex and regulated field of accounting, accounting information in Morocco has its own specificities, governed by rigorous standards and laws. This article aims to shed light on the key aspects of this regulation, with a focus on IFRS standards and Moroccan accounting standards, which form the basis of accounting in the country. These standards, essential for public companies and financial institutions, define the rules of transparency and financial statement presentation. Understanding these standards is crucial for any company operating in Morocco, highlighting the importance of chartered accountants in the country’s economic ecosystem. For a deeper understanding, see our guide on accounting rules in Morocco.

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Accounting Information in Morocco - Regulations

The CGNC provides the general accounting framework. Law 9-88 governs merchants; other entities apply the rules and frameworks specific to their status or sector.

The CGNC establishes seven fundamental accounting principles:

1. Going concern principle: Accounts must be prepared on the assumption that the company will continue its operations.
2. Consistency of methods principle: The same rules of valuation and presentation must be applied from one fiscal year to the next.
3. Historical cost principle: The initial value of an accounting item remains unchanged despite market fluctuations.
4. Accrual principle: Expenses and revenue must be allocated to the fiscal year to which they relate.
5. Prudence principle: income is recognized only when definitively earned, while expenses are recorded as soon as they are probable, under Law 9-88.
6. Clarity principle in accounting: Information must be clearly categorized, correctly named, and without offsetting between items.
7. Materiality: All material items must be disclosed in the financial statements.

Accounting Books

Law 9-88 provides for the journal, general ledger and inventory book, with concessions for certain individuals. The accounting organization manual is mandatory when annual turnover exceeds 10 million dirhams. The normal model comprises the balance sheet, CPC, ESG, financing table and ETIC, with exemptions under Article 21 for the simplified model.

Accounting, beyond its basic function of recording transactions, plays a crucial role in company management and provides essential financial information to various stakeholders, such as banks, shareholders, employees, and tax authorities. It thus offers a clear view of the company’s financial position, facilitating decision-making and risk management. A thorough financial audit can further validate the accuracy of this information.

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Accounting Information in Morocco - Role of the Chartered Accountant

Chartered accountants in Morocco play an essential role in economic development and business growth. They provide a range of specialized services, from accounting and taxation to financial advisory. These professionals are regulated by the Order of Chartered Accountants (OEC) of Morocco, which imposes strict professional standards and continuing education to maintain their status.

In Morocco, the national chartered accountant qualification is prepared at Groupe ISCAE after admission by competitive examination. It comprises three certificates, a three-year professional internship and a dissertation defence. Practising also requires registration with the Institute of Chartered Accountants.

Roles of the Chartered Accountant

Moroccan chartered accountants offer various services, including:

1. Accounting: Maintaining accounting books, preparing financial statements, and ensuring compliance with local and international accounting standards.
2. Taxation: Helping businesses and individuals comply with tax laws, preparing and filing tax returns, and minimizing the tax burden.
3. Audit: Conducting financial audits to verify the accuracy of financial statements and detect fraud.
4. Financial advisory: Providing advice on cash management, financial planning, and debt management.

In terms of regulation, the OEC establishes ethical standards for chartered accountants, requiring confidentiality and the avoidance of conflicts of interest. Furthermore, the chartered accountant is the only professional authorized to certify the accuracy and sincerity of balance sheets and income statements, and to carry out statutory audit engagements. This exclusive competence is essential to guarantee the reliability of companies’ accounting and financial data.

The Chartered Accountancy diploma in Morocco requires several years of post-secondary study, including a three-year professional internship. This comprehensive training ensures that chartered accountants possess the skills and knowledge necessary to effectively advise companies on various financial, legal, and tax matters.

For more information about the role and training of chartered accountants in Morocco, you can visit the Training and OEC Morocco websites.

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Corporate Taxation in Morocco

Corporate taxation in Morocco is a complex area that includes several key elements to understand for effective tax management.

1. Corporate Tax (IS): Corporate tax applies to entities covered by Article 2 of the CGI, subject to Articles 3 and 6. Non-residents follow Article 5 territoriality rules and tax treaties. For financial years opened in 2026, the ordinary rate is 20%; 35% applies when net profit reaches or exceeds 100 million dirhams, subject to the exclusions and conditions for returning to 20% in Article 19-I-B. The 40% rate covers credit institutions and similar bodies, Bank Al-Maghrib, CDG, insurers and reinsurers. Microfinance SAs formed by transferring the assets and liabilities of microfinance associations benefit from the temporary exclusion in Article 19-I-C for their first five operating years.
2. Exemptions and tax incentives: hotel businesses are exempt for five consecutive years from the financial year of their first accommodation transaction in foreign currency, for the tax base corresponding to foreign currency revenue duly repatriated directly or through travel agencies. They must attach the statement required by Article 6-II-B-5° to their returns. Thereafter, the 2026 rate is 20% or 35% under Article 19.
3. Capital gains taxation: capital gains follow the applicable IS rate. Non-resident companies are exempt on gains from securities listed on Morocco’s stock exchange, except securities of real estate predominant companies defined in Article 61-II of the CGI.
4. Deductions and tax credits: Companies can deduct various expenses related to their business activities. Charitable donations are also deductible under certain conditions. Tax losses can be carried forward for four years, and the portion of losses related to depreciation can be carried forward indefinitely.
5. Other corporate taxes: depending on their operations and circumstances, companies may bear registration and stamp duties, business tax, municipal services tax and tax on undeveloped urban land. Employers must also withhold and remit income tax on wages.

For optimal tax management, it is recommended to work with a qualified chartered accountant or tax advisor. They can help companies navigate the complex tax landscape, ensure compliance with deductible expenses rules for corporate tax, and optimize their tax position.

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Accounting Information in Morocco - How to Become a Chartered Accountant

To become a chartered accountant in Morocco, it is necessary to obtain the National Chartered Accountancy Diploma (DNEC), established by decree no. 2.89.519 of 23 hija 1410 (July 16, 1990). This diploma is awarded after meeting training and internship requirements. Training is organized exclusively by the ISCAE Group and includes a three-year program accompanied by a professional internship of the same duration. The admission process involves a highly selective entrance examination with written tests in accounting, law, management, and writing skills. After the training, the preparation of a final thesis is required. Chartered accountants have a role that extends beyond accounting, offering advisory services in various areas to companies. For more information, you can consult the Upsilon Consulting website here.

Upsilon Consulting plays a crucial role in guaranteeing the quality of accounting information in Morocco. As a chartered accounting firm, it contributes to the production of reliable accounting information in compliance with the standards in force. Upsilon Consulting also provides audit services, assessing and verifying the accuracy of companies’ financial data, thereby guaranteeing their reliability and transparency. This role is essential for the proper functioning and credibility of companies in the Moroccan economic landscape. For more details about our services, visit the Upsilon Consulting home page.

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Frequently asked questions

What is accounting information and why is it important in Morocco?

Accounting information encompasses all financial data produced through the accounting process, including balance sheets, income statements, and management reports. In Morocco, it is essential for tax compliance, securing financing from banks, and enabling informed decision-making by company directors and investors.

Who regulates accounting information in Morocco?

The CGNC (Code Général de Normalisation Comptable) and the Conseil National de la Comptabilité set the standards. The DGI (Direction Générale des Impôts) enforces compliance through tax audits. For listed companies, the AMMC (Autorité Marocaine du Marché des Capitaux) imposes additional transparency requirements.

How can a company improve the quality of its accounting information in Morocco?

A company can improve the quality of its accounting information by engaging a qualified chartered accountant, implementing robust internal controls, and adopting reliable accounting software aligned with the CGNC standards. Regular internal and external audits help detect errors and ensure compliance with Moroccan regulations. Partnering with a reputable firm such as Upsilon Consulting provides expert oversight, ensuring that financial statements are accurate, transparent, and fully compliant with the requirements of the DGI and other regulatory bodies.