In brief: Casablanca Finance City (CFC) offers a privileged tax status including a 20% corporate tax rate after a 5-year total exemption (Art. 19-I-A CGI 2026; the former 15% rate converged to 20% per Art. 247-XXXVII-A-2), a flat 20% income tax option for employees, and exemption from withholding tax on dividends paid to non-residents.
Casablanca Finance City (CFC) is a Moroccan financial center with a privileged tax status, offering significant corporate tax deductions. It sees itself as a financial and economic hub for financial and service activities on the African continent.
The Casablanca Finance City authority (CFCA) manages the financial center at the crossroads of Africa and Europe. The authority that manages this place has, moreover, partnership agreements with some major international financial centers. The center is currently home to financial companies and service providers. In addition, several regional headquarters of multinationals are located there.
Casablanca Finance City works to promote the expertise of its members at the African level. The managing authority promotes synergies and interesting business opportunities that registration can have. Thus, we can notice from reading the published documents an emphasis on the advantages of the CFC network.
Casablanca Finance City (CFC) - Advantages highlighted
According to its promoters, the installation of a company at CFC has the following advantages. For general information on how to create a company in Morocco, see our dedicated guide:
First, in terms of doing business:
Casablanca Finance City (CFC) aims to facilitate the business of companies through a one-stop administrative window. An installation in this financial zone allows :
-
Easy mobility of people: Companies established in this zone benefit from a facilitated process for the recruitment of foreign staff. Companies with CFC status are exempted from the ANAPEC attestation procedure for the absence of national candidates. Candidates are, moreover, exempted from the production of diplomas and reference certificates. Finally, CFC guarantees this recruitment authorization within 3 working days;
-
Mobility of capital: The companies established in CFC can benefit from a fluidity of management of foreign currencies. They:
Can benefit from the opening of a foreign currency account;
-
Have total freedom to dispose of funds in foreign currency from foreign sources.
-
Benefit from an improved business travel allowance
Read to understand the Moroccan exchange rate regime (normal): Foreign Investment in Morocco
- An alternative dispute resolution tool through the International Center for Mediation and Arbitration of Casablanca
Second, community relations :
CFC promotes its large community of over 200 businesses as a competitive advantage.
This community is made up of leading companies operating in diversified business sectors in more than 50 African countries. CFC is setting up a digital communication system. In addition, CFC organizes monthly events that serve to create synergies between the different members.
Finally, tax advantages :
Companies based in Casablanca Finance city (CFC) benefit from tax advantages compared to the common law system. These advantages include corporate income tax and income tax for employees.
Casablanca Finance City (CFC) - Special tax status
Despite the fact that the Moroccan government has had to make changes to this status to leave the European gray list, the CFC status remains advantageous.
CORPORATE INCOME TAX (IS)
Companies located in Casablanca Finance City are subject to corporate income tax (I.S.). Thus, these companies benefit from :
- Total exemption from the corporate income tax for a period of 5 consecutive fiscal years;
- A specific tax rate of 20% after 5 years, regardless of profit level — CFC companies are excluded from the 35% rate that applies to businesses with net profit ≥ 100 M MAD (Art. 19-I-A CGI 2026; the former 15% rate converged to 20% per Art. 247-XXXVII-A-2).
The companies established in CFC benefit from an exemption of the minimum contribution during the first 5 years. After this period, the law imposes a minimum contribution of 0.25% of the turnover (since Finance Law 2023). The minimum contribution is the minimum amount of tax to be paid.
The tax benefits start to accrue from the decision of the CFC Commission to grant CFC status.
INCOME TAX (IR)
The employees of a CFC company have the possibility to opt for the payment of the R.I. at the flat rate of 20%.
Under the normal regime, salaries are taxed at a progressive scale with a marginal rate of 38%.
In addition, it should be noted that the RI is applied on :
- Gross salaries and miscellaneous remuneration
- Indemnities and benefits in cash or in kind;
- In general, any compensation received by the employee.
If the employee has other income, he must also file his global income tax return (in accordance with the provisions of Article 82 of the Moroccan General Tax Code (C.G.I))
Employees who wish to do so may opt for the ordinary law regime (in particular employees who, because of other benefits, may be taxed at a lower rate).
Taxation at the rate of 20% is granted for a maximum period of 10 years from:
- The decision to grant CFC status;
- The date the employee takes up their position, for employees recruited after the CFC status decision.
Casablanca Finance City (CFC) - Other tax advantages
- Corporations located at CFC are exempt from withholding tax on dividends when dividends are paid to non-residents ;
- CFC companies are exempt from registration fees on capital transactions (update: this measure has been generalized to all companies)
How to Obtain CFC Status
Application Procedure
According to Decree-Law No. 2-20-665 of September 30, 2020, on the reorganization of Casablanca Finance City, CFC status is granted, on the proposal of CFCA, by decision of the government authority in charge of finance, to companies eligible for said status. CFCA submits CFC status grant proposals to the government authority in charge of finance in accordance with the CFC status application processing procedure.
Eligibility Conditions
Companies eligible for CFC status must meet the following conditions as set out in Article 7 of the decree:
- Be duly incorporated in Morocco. For companies being formed, the status may be granted subject to the completion of all legal incorporation steps within six months from the date of notification of the CFC status decision;
- Have their effective registered office and activities at CFC according to the terms and timeframe set by the government authority in charge of finance on the proposal of CFCA;
- Establish a business plan meeting criteria set by regulation and commit to achieving it. These criteria must allow the assessment of the effectiveness and substance of the projected activity, particularly with regard to employees recruited or to be recruited, operating budgets and the business model;
- Present sufficient guarantees, particularly regarding their organization, technical resources and the experience and good standing of their directors;
- Comply with applicable legislation and regulations, including those relating to foreign trade, foreign exchange, anti-money laundering and counter-terrorism financing, as well as applicable tax conventions;
- Commit to respecting the code of ethics;
- Commit to transmitting to CFCA all documents and information it requests to ensure compliance with the commitments on the basis of which CFC status was granted.
Application Documents
The application for CFC status must be addressed to CFCA by the person duly authorized by the applicant company. The application file must include the following documents:
- A CFC status application form, duly completed, according to the template established by CFCA;
- A letter of intent for the CFC status application;
- A document attesting that the applicant is duly authorized to represent the company;
- A list of shareholders and beneficial owners;
- Proof of identity and curriculum vitae of persons holding management positions.
CFCA publishes on its website the list of documents required, by type of activity, for processing the CFC status application.
CFC and Credit Institutions: A Special Regime
It should be noted that the specific CFC tax regime does not apply to credit institutions or insurance and reinsurance companies. These entities remain subject to the ordinary tax regime applicable to their respective sectors, even when located within the CFC zone. This distinction is important for financial groups considering establishing operations in Casablanca Finance City.
When a company exercises its activity partly before and partly after obtaining CFC status within the same fiscal year, the tax advantages are granted on a pro-rata basis corresponding to the activity carried out from the date CFC status was granted.
Upsilon Consulting, led by Salaheddine Yatim, Chartered Accountant and member of the OEC, can help you obtain CFC status.
Frequently Asked Questions
What tax advantages does Casablanca Finance City (CFC) status offer?
CFC status provides a total IS exemption for 5 years, followed by a preferential corporate tax rate of 20% (Art. 19-I-A CGI 2026; the former 15% rate converged to 20% per Art. 247-XXXVII-A-2), and a total exemption from withholding tax on dividends distributed to non-resident shareholders. These advantages make it one of the most attractive tax regimes in Africa.
Who can apply for CFC status in Morocco?
CFC status is available to companies operating in eligible sectors such as financial services, professional services, holding companies, and regional headquarters. Credit institutions and insurance companies are excluded from the CFC tax regime. Applications are submitted to the Casablanca Finance City Authority (CFCA).
Does CFC status require a physical presence in Casablanca?
Yes, companies with CFC status must establish a genuine physical presence in Casablanca, including office space and local staff. The CFCA monitors compliance with these requirements. However, CFC companies benefit from simplified administrative procedures and a dedicated support team to facilitate their establishment.
IN OUR BLOG
Does your company qualify for CFC tax rates? Use our free Corporate Tax Rate Calculator to instantly find out the applicable rate, minimum contribution and social solidarity tax for your business.
READ ALSO
Service Offshoring in Morocco: Tax Benefits and Setup
Branch in Morocco: what you should know
Establish a Company in Morocco
