In brief: The Communal Services Tax (TSC) is a Moroccan local tax levied on built properties at rates of 10.50% or 6.50% of rental value. Managed by the DGI since June 2025, it funds municipal services. Primary residences benefit from a 75% reduction on the taxable base. Learn about related obligations in our professional tax guide.
The Communal Services Tax (TSC) in Morocco is a local tax that was introduced in 2018. It replaced the former edilite tax as part of the modernization of Morocco’s local taxation system. The TSC is a vital source of funding for municipalities, enabling them to provide essential public services such as street lighting, waste collection, road maintenance, and sanitation.
The Communal Services Tax is levied on an annual basis. The public treasury handles its collection on behalf of the municipalities. Notably, since June 2025, the management of the Housing Tax and the TSC has been transferred to the General Tax Directorate (DGI) under law 14-25 amending law 47-06.
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Definition and Legal Basis of the TSC
The Communal Services Tax is governed by law No. 47-06 on local authority taxation, promulgated by Dahir 1-07-195 of November 30, 2007. This law regulates all local taxes in Morocco and establishes the rules for assessment, calculation, and collection of the TSC.
The TSC applies to all built real estate properties of any kind. It also applies to other means of production subject to the Professional Tax. Its primary objective is to contribute to the financing of municipal expenses related to the services provided to residents and businesses.
Who Is Subject to the Communal Services Tax?
The Communal Services Tax is assessed in the name of the owner or the usufructuary of any immovable property. However, when the tax authority is unable to issue the assessment in the name of the owner, it issues it in the name of the possessor or the occupant.
Persons Liable for the TSC
The following persons are subject to the TSC:
- Owners of built real estate properties located in urban areas;
- Usufructuaries of immovable properties;
- Possessors or occupants, when the owner cannot be identified;
- Businesses and professionals with equipment and tools subject to the Professional Tax.
The Tax Base
The tax base of the Communal Services Tax is composed of:
- Built properties and structures of any kind;
- Equipment, tools, and any means of production subject to the Professional Tax.
Geographic Scope
In terms of geographic location, the TSC applies within:
- The boundaries of urban municipalities;
- Peripheral zones of said municipalities;
- Designated centers determined by regulation;
- Summer, winter, and thermal resorts whose Housing Tax perimeter is defined by regulation.
Relationship with the Housing Tax and Professional Tax
The Communal Services Tax is closely linked to two other local taxes: the Housing Tax and the Professional Tax. The TSC calculation base is the same rental value used as the basis for these two taxes.
For residential properties, the TSC is added on top of the Housing Tax. For commercial premises, it complements the Professional Tax. A taxpayer may therefore be liable for both the Housing Tax (or Professional Tax) and the TSC on the same property simultaneously.
It is important to note that the 75% reduction applied to the rental value of a primary residence for the Housing Tax also applies when calculating the TSC.
Who Is Exempt from the TSC?
According to the provisions of law 47-06, taxpayers who are exempt from the Professional Tax are also exempt from the Communal Services Tax. In addition, the following are also exempt:
- Taxpayers benefiting from total exemption from the Housing Tax;
- Political parties and trade unions for properties they own that are used as their headquarters.
Temporary Exemption for New Constructions
Newly constructed buildings benefit from an exemption from the Housing Tax for a period of 5 years starting from the year following the completion of construction. However, this temporary exemption applies to the Housing Tax and not directly to the TSC. The TSC remains due, but with the 75% reduction applied if the property serves as the taxpayer’s primary residence.
Entities Excluded from Exemption
The following entities cannot benefit from the TSC exemption:
- Offshore banks and offshore holding companies, for properties occupied by their headquarters or branches;
- Companies established in the Tangier free trade zone for activities carried out within said zone;
- Undertakings for Collective Investment in Transferable Securities (UCITS);
- Collective Investment Funds for Securitization (FPCT);
- Venture Capital Investment Organizations (OPCR);
- Cooperatives and their unions;
- Bank Al-Maghrib;
- Natural or legal persons holding a research permit or a concession for hydrocarbon exploitation;
- The State, local authorities, and public establishments.
Determining the TSC Tax Base
The Communal Services Tax is based on the rental value of the properties concerned. The determination of this base varies depending on the nature of the property:
- Properties subject to the Housing Tax and the Professional Tax: the rental value used as the basis for calculating said taxes is retained;
- Properties not subject to the Housing Tax: either the total amount of rent when said properties are leased, or their rental value when they are made available to third parties free of charge.
The rental value is determined by comparison with similar properties located in the same area, or by direct assessment when comparison is not possible. It is revised every 5 years with a 2% increase.
Communal Services Tax Rates
The TSC rates vary according to the geographic location of the property:
- 10.50% of the rental value for properties located within the boundaries of urban municipalities, designated centers, summer, winter, and thermal resorts;
- 6.50% of the rental value for properties located in the peripheral zones of urban municipalities.
How to Calculate the TSC: Practical Example
To illustrate the calculation of the Communal Services Tax, let us take the example of an apartment located in Casablanca with an estimated annual rental value of 48,000 MAD.
Case 1: Primary residence
- Annual rental value: 48,000 MAD
- 75% reduction (primary residence): 48,000 x 75% = 36,000 MAD
- Taxable base: 48,000 - 36,000 = 12,000 MAD
- Applicable rate (urban zone): 10.50%
- TSC due: 12,000 x 10.50% = 1,260 MAD per year
Case 2: Rental property
- Annual rental value: 48,000 MAD
- No reduction (property not used as primary residence)
- Taxable base: 48,000 MAD
- Applicable rate (urban zone): 10.50%
- TSC due: 48,000 x 10.50% = 5,040 MAD per year
Payment Deadlines and Procedures
The Communal Services Tax is issued through tax rolls. The taxpayer receives a tax notice indicating the amount due and the payment deadline. The deadline for paying the TSC is set at May 31 of each year.
Payment can be made at the public treasury collection offices or, since the transfer of management to the DGI, through the usual tax administration payment channels. Taxpayers also have the option of paying online through the electronic payment platforms set up by the administration.
Penalties for Late Payment
Any delay in paying the Communal Services Tax results in the application of financial penalties:
- A 10% penalty on the amount of tax due;
- A 5% surcharge for the first month of delay;
- A 0.50% surcharge for each additional month or fraction of a month of delay.
These penalties accumulate and can quickly add up to a significant amount. It is therefore strongly recommended to meet payment deadlines to avoid these additional costs.
Recent Reforms of the TSC
Morocco’s local tax system has undergone several reforms in recent years. The most notable is the transfer of the management of the Housing Tax and the TSC from the General Treasury of the Kingdom to the General Tax Directorate (DGI), effective since June 2025, under law 14-25 amending law 47-06.
This reform aims to improve the collection of local taxes and simplify procedures for taxpayers by centralizing tax management under a single body. It is part of a broader effort to modernize Morocco’s tax administration.
Source: Dahir 1-07-195 of 19 kaada 1428 (November 30, 2007) promulgating law No. 47-06 on local authority taxation.
Frequently Asked Questions
What is the Communal Services Tax (TSC) in Morocco?
The TSC (Taxe de Services Communaux) is a local tax levied on properties located within urban municipalities and peripheral areas in Morocco. It is calculated based on the rental value of the property as determined by the tax administration, and it funds local community services and infrastructure.
Who is liable for the Communal Services Tax in Morocco?
The TSC is payable by the owner of the property, the usufructuary, or the person holding a long-term lease. For properties subject to professional tax, the business occupying the premises is liable. Both individuals and legal entities can be subject to this tax.
How is the TSC calculated in Morocco?
The TSC is calculated by applying a rate of 10.5% to the rental value of the property. For properties located within a municipality’s territory, the rate includes the base tax plus additional surcharges for urban services. The rental value is determined by the tax administration and revised periodically.
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