In brief: Casablanca Finance City (CFC) offers companies a privileged tax status: a corporate income tax (IS) exemption for eligible service companies for five financial years (no later than sixty months after incorporation for status obtained since 2023). At the end of the exemption period, a 20% rate applies. The tax advantage does not apply to credit institutions and insurance and reinsurance companies. In addition, employees benefit from a final (libératoire) income tax rate of 20% for a maximum of 10 years (excluding credit institutions and insurance companies). The CFC regime offers exchange facilities under Office des Changes Circular no. 2/2018. The application for the status is filed with CFCA, and the status is granted by decision of the minister in charge of finance, on CFCA’s proposal (Decree-Law 2-20-665).
Casablanca Finance City (CFC) is a Moroccan financial center with a privileged tax status. It sees itself as a financial and economic hub for financial and service activities on the African continent, facilitating investment in Morocco.
The Casablanca Finance City authority manages the financial center at the crossroads of Africa and Europe. The authority that manages this center 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.
Many CFC companies operate in services offshoring in Morocco and, more broadly, in nearshoring and outsourcing strategies. Incorporating the company is the first step to create a company in Morocco and then apply for the status.
Casablanca Finance City - Advantages highlighted
According to its promoters, the installation of a company at CFC has the following advantages:
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:
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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;
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Mobility of capital: The companies established in CFC can benefit from a fluidity of management of foreign currencies. They:
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CFC enterprises exporting services may open foreign-currency or convertible-dirham accounts under Office des Changes Circular no. 2/2018.
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These accounts may receive the foreign-source currency assets listed in Annex I to Circular no. 2/2018, receipts for services to non-residents and investment income. They may be used for any payment, investment or placement in Morocco or abroad, without an overdraft. Holders report to the Office des Changes no later than three months after year-end.
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Benefit from an improved business travel allowance
Read to understand the Moroccan foreign exchange regime (normal): Foreign Investment in Morocco
- An alternative dispute resolution tool through the International Center for Mediation and Arbitration of Casablanca
Casablanca Finance City offers 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 ordinary regime. These advantages include, in particular, corporate income tax and income tax for employees.
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. It is one of several incentive schemes in Morocco, alongside, in particular, the startup tax regime designed for young innovative companies.
CORPORATE INCOME TAX (IS)
These companies benefit from a total exemption from corporate income tax for the first five consecutive financial years, starting from the first financial year in which the status is granted. Since the 2023 Finance Act, this exemption ceases, however, to apply on expiry of the first 60 months following the date of incorporation of the company (Art. 6-II-B-6°, para. 2). Companies that obtained CFC status before 1 January 2023 continue to benefit from the count of five consecutive financial years.
After this exemption period, companies become taxable at the rate of 20%, regardless of the amount of profit (CFC companies are excluded from the 35% rate applicable to companies whose net income is ≥ MAD 100 million).
This specific regime does not apply to credit institutions and insurance and reinsurance companies.
Like any newly created company, a CFC-status company is exempt from the minimum contribution during the first 36 months following the start of its business activity, without this exemption extending beyond the 60 months following its incorporation (Art. 144-I-C-1°). Thereafter, the minimum contribution is due at the rate of 0.25% of the base defined in Art. 144-I-B (turnover and other operating income, financial income, subsidies and donations received, excluding VAT), with a minimum of MAD 3,000. The minimum contribution is the minimum amount of tax to be paid.
CFC status is granted by decision of the government authority responsible for finance, on CFCA’s proposal. The corporate tax exemption runs from the first financial year of grant, within the limits of article 6-II-B-6° of the CGI.
When, during the same financial year, a company carries on its activity for part of the period without CFC status and for the remainder of the period with CFC status, the advantages provided for are granted on a pro-rata basis corresponding to the activity carried out from the date CFC status was granted.
INCOME TAX (IR)
Salaries paid by a CFC company are subject to income tax (IR) at the final (libératoire) rate of 20%, except for employees of credit institutions and insurance and reinsurance companies, who remain subject to the progressive scale.
Under the normal regime, salaries are taxed at a progressive scale with a marginal rate of 37% (income above MAD 180,000/year).
In addition, it should be noted that IR applies to:
- Gross salaries and miscellaneous remuneration;
- Indemnities and benefits in cash or in kind;
- In general, any compensation received by the employee
Employees with other income subject to reporting must file an annual global income return. The exemptions in article 86 of the CGI remain applicable, including income and gains subject to a final tax rate.
Employees who wish to do so may opt for the ordinary progressive scale (in particular employees who, because of their deductions, may be taxed at a lower rate): the request is submitted to the employer, using a form established by the tax administration, before 1 February of the year concerned. Since 2026, the employee may return to the 20% rate by submitting a request within the same deadline.
Taxation at the rate of 20% is granted for a maximum period of 10 years from:
- the decision to grant the status, for employees already employed by the company at that date;
- the date the employee takes up their position, for employees recruited after that decision.
Since 1 January 2026, this 10-year period is counted on a continuous or non-continuous basis, disregarding periods worked outside CFC companies: an employee who moves from one CFC company to another keeps the remainder of their 10 years. The CFC company attaches the list of employees concerned to its annual salary return.
Other advantages
- Foreign-source dividends and similar participation income paid, made available or credited to non-residents by CFC-status companies are exempt from withholding tax, excluding the credit institutions and insurance and reinsurance companies specified in article 6-I-C-1° of the CGI.
- Deeds of incorporation and capital increase of CFC-status companies are exempt from registration duties under article 129-IV-22° of the CGI. Other companies benefit from the separate exemptions in article 129-IV-23°, subject to its conditions.
Casablanca Finance City (CFC): How to set up?
Procedure for granting the status
According to Decree-Law No. 2-20-665 of 12 Safar 1442 (30 September 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 under the conditions laid down in this decree-law. 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 that meet the following conditions are eligible for CFC status (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 a period not exceeding six (6) months from the date of notification of the CFC status decision.
- If the deadline set out in the paragraph above is not met, said decision is no longer valid;
- 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.
- Present sufficient guarantees, particularly regarding their organization, technical resources and the experience and good standing of their directors;
- Comply with the legislation and regulations in force applicable to them, in particular those relating to foreign trade, foreign exchange, anti-money laundering and counter-terrorism financing, as well as the conventions in force applicable to them, in particular 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 for CFC status
The application for CFC status must be addressed to CFCA by the person duly authorized for this purpose by the company applying for said status.
The application must be accompanied by a file including, in particular, 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.
Casablanca Finance City Authority (CFCA) publishes on its website the list of documents required, by type of activity, for processing the CFC status application.
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Frequently asked questions
What is the CFC corporate tax rate in Morocco?
Eligible CFC service companies, excluding the credit institutions and insurance and reinsurance companies specified by the CGI, are exempt from corporate tax for five consecutive financial years from the first year in which status is granted. For status obtained on or after 1 January 2023, the exemption ends no later than sixty months after incorporation. Earlier status retains the five-year calculation under Circular Note no. 733. The subsequent rate is 20%, without application of the 35% rate (CGI, articles 6-II-B-6° and 19-I-B-1°).
Who is eligible for CFC status in Morocco?
CFC status is open to companies engaged in financial services, professional services, regional holding or regional headquarters, duly incorporated in Morocco.
Can a Moroccan company obtain CFC status?
An enterprise belonging to an eligible financial or non-financial category may apply for CFC status if it meets the statutory and regulatory conditions, including incorporation, effective establishment and substance of its activity. CFCA examines applications and proposes the grant of status to the government authority responsible for finance.
What tax advantages does Casablanca Finance City (CFC) status offer?
Eligible CFC service companies, excluding the credit institutions and insurance and reinsurance companies specified by the CGI, are exempt from corporate tax for five consecutive financial years from the first year in which status is granted. For status obtained on or after 1 January 2023, the exemption ends no later than sixty months after incorporation. Earlier status retains the five-year calculation under Circular Note no. 733. The subsequent rate is 20%, without application of the 35% rate (CGI, articles 6-II-B-6° and 19-I-B-1°). Foreign-source dividends and similar participation income paid, made available or credited to non-residents by CFC-status companies are exempt from withholding tax, excluding the credit institutions and insurance and reinsurance companies specified in article 6-I-C-1° of the CGI.
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.
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