In brief: A client gift is deductible from corporate tax if it is worth no more than MAD 100 per unit and bears the company name, trade name, acronym or brand (Art. 10-I-B-1° of the 2026 CGI). Otherwise, all of it is added back. Their VAT is never recoverable.
Three taxes meet on the same gift: corporate tax (does the expense reduce taxable profit?), VAT (can the tax paid on purchase be recovered?) and income tax (is the employee who receives it taxed?). This article adds three specific cases to the general list of deductible expenses for corporate tax in Morocco: promotional gifts to clients, gift vouchers and samples.
What the 2026 CGI says: promotional gifts, gratuitous benefits, employee benefits and VAT
Corporate tax: promotional gifts up to MAD 100 (Art. 10-I-B-1°)
The law provides that, among other external expenses incurred for the purposes of the business, the following are deductible: “promotional gifts with a maximum unit value of one hundred (100) dirhams bearing either the company name, or the trade name or acronym of the company, or the brand of the products it manufactures or trades”. No finance-law note refers to this paragraph: the MAD 100 amount was not changed in the 2026 version of the General Tax Code (CGI).
Two conditions apply cumulatively:
- a unit value of MAD 100 at most: the text says “maximum”, so a gift of exactly MAD 100 qualifies;
- an identifying mention: company name, trade name, acronym of the company or brand of its products.
The text does not say whether the MAD 100 is assessed excluding or including VAT.
Corporate tax: gratuitous benefits are not deductible (Art. 11-IV)
Article 11-IV of the 2026 CGI provides that “the amounts of purchases and services of a gratuitous nature” are not deductible from taxable profit. This wording results from Finance Law no. 68-17 for 2018. This provision is the basis for adding back gifts that do not meet both conditions of Article 10-I-B-1° and gift vouchers given to third parties, an add-back made in the reconciliation from accounting profit to taxable profit.
Corporate tax: benefits granted to employees (Art. 10-I-D)
Article 10-I-D allows the deduction of “staff and labour costs and the related social charges, including housing assistance, entertainment allowances and other cash or in-kind benefits granted to the company’s employees”. In 2026, it is the basis for deducting gift vouchers given to employees.
Income tax: a gift voucher is employment income (Art. 56 and 58-I)
Article 56 includes in employment income “cash or in-kind benefits granted in addition to the above income”. A gift voucher given to an employee falls within it. Article 58-I specifies that “in-kind benefits are valued at their actual value”. Any part paid by the employee through a deduction from salary is subtracted.
No exemption in Article 57 covers gift vouchers. Two neighbouring exemptions exist and must not be confused:
| Benefit | Legal basis | 2026 income tax treatment |
|---|---|---|
| Gift voucher | Art. 56 and 58-I | Taxable at its actual value, no exemption |
| Food or meal vouchers | Art. 57-13° (Finance Law no. 80-18 for 2019, Finance Law no. 60-24 for 2025) | Exempt up to MAD 40 per employee per working day, without exceeding 20% of taxable gross salary; electronic payment allowed; not cumulative with food allowances for remote worksites |
| Tourism vouchers | Art. 57-24° (Amending Finance Law no. 35-20 for 2020) | Exempt, under conditions set by regulation |
VAT: gratuitous benefits are excluded from the deduction right (Art. 106-I)
Article 106-I of the 2026 CGI excludes from the deduction right the VAT charged on:
- 1° “goods, products, materials and services not used for the purposes of the business”;
- 5° “purchases and services of a gratuitous nature”;
- 6° “travel, reception or entertainment expenses”, except for the donations referred to in Articles 92-I-21° and 23° (Finance Law no. 73-16 for 2017).
Article 106 provides no MAD 100 tolerance: that cap is specific to corporate tax.
Import VAT: samples of no commercial value (Art. 123-3°)
Article 123-3° exempts from import VAT “samples of no commercial value and exceptional consignments devoid of any commercial character”. This wording results from Finance Law no. 68-17 for 2018.
Key takeaways:
- In Morocco, a promotional gift is deductible from corporate tax if it is worth no more than MAD 100 per unit and bears the company name, trade name, acronym or brand (Art. 10-I-B-1° of the 2026 CGI).
- Purchases of a gratuitous nature are not deductible from taxable profit (Art. 11-IV, wording of Finance Law no. 68-17 for 2018).
- A gift voucher given to an employee is employment income taxable at its actual value (Art. 56 and 58-I of the 2026 CGI); no exemption in Art. 57 covers it.
- VAT on gratuitous benefits is not deductible (Art. 106-I-5° of the 2026 CGI), with no MAD 100 tolerance.
What the administration specifies: NC 717 and NC 736
Circular note no. 717 of April 2011 still applies to gifts: the MAD 100 amount is unchanged in the 2026 CGI.
Promotional gifts to customers (NC 717, volume 1, p. 138)
In § 4-11-e-1, the administration repeats Article 10-I-B-1° word for word: maximum unit value of MAD 100, company name, trade name, acronym or brand. This page says nothing about a gift above the threshold.
Gratuitous benefits and full add-back (NC 717, volume 1, p. 187-188)
The administration defines a gratuitous benefit as “the act by which a person provides or undertakes to provide to another a good or an advantage without consideration”. Its list of non-deductible gratuitous benefits cites “promotional gifts whose value exceeds one hundred (100) DH”. Conversely, it excludes from that list “promotional gifts whose value is below one hundred (100) DH” (p. 188).
This passage, combined with Article 11-IV, is the basis for adding back the whole gift when it exceeds MAD 100.
Medical samples from laboratories (NC 717, volume 1, p. 138)
In § e-2, which refers to circular note no. 245/03 LCCI of 5 June 2003, the administration specifies that medical samples delivered free of charge during the financial year by pharmaceutical laboratories to their customers are “deductible for their amount, VAT included, as an operating expense”. The condition is that “the value of those samples must appear among the operating income of these companies and be taken back, VAT included, in the appropriate expense account”.
Units of medicines supplied free of charge outside the invoice “in the interest of the company” are also deductible VAT included. Their amount must then appear on the return of fees paid to third parties provided for in Article 151.
VAT: year-end gifts to customers (NC 717, volume 2, p. 170)
In § 2-4, the administration specifies that gratuitous benefits concern goods and services not used to carry out taxable transactions: their VAT is excluded from the deduction right. “This is notably the case of year-end gifts distributed by the company to its customers.” § 2-5, on the same page, also excludes travel, reception and entertainment expenses. The other exclusions are covered in the article on VAT deductions in Morocco.
Import VAT: the notion of sample (NC 717, volume 2, p. 193)
In § 3, the administration specifies that samples of no commercial value “serve only to seek orders”: their presentation and negligible quantity make them “unusable for purposes other than prospecting”.
Meal vouchers: the MAD 40 cap (NC 736, p. 15)
NC 736 (Finance Law 2025) specifies in § D that the exemption cap for meal vouchers under Article 57-13° rises from MAD 30 to MAD 40 per employee per working day from 1 January 2025, with electronic payment allowed. It restates the 20% cap on taxable gross salary and the non-cumulation with worksite allowances.
NC 729 to 735 and NC 737 (Finance Law 2026) contain no measure on gifts, gift vouchers or samples.
Key takeaways:
- NC 717 (April 2011, volume 1, p. 187) lists promotional gifts worth more than MAD 100 among non-deductible gratuitous benefits.
- Free medical samples from pharmaceutical laboratories are deductible VAT included if their value is recorded in operating income and taken back, VAT included, as an expense (NC 717, volume 1, p. 138; NC no. 245/03 of 5 June 2003).
- VAT on year-end gifts distributed to customers is not deductible (NC 717, volume 2, p. 170; Art. 106-I-5° of the 2026 CGI).
- The meal voucher exemption cap has been MAD 40 per employee per working day since 1 January 2025 (NC 736, p. 15; Art. 57-13°).
Cases decided by the DGI: gift vouchers and gifts to customers
DGI answer no. 64 of 19 February 2003: gift vouchers
Question. What tax advantages apply to the purchase of gift vouchers?
Answer. In an answer of 19 February 2003 (DGI 2003 compendium, p. 38; also included in the IS compendium 2000-2005, p. 30), the DGI stated that “the legislation in force provides no specific tax provision for the purchase or granting of gift vouchers”. It accepted that gift vouchers given to the company’s employees are a deductible operating expense. It added that “only gift vouchers granted to the company’s salaried employees are deductible; by contrast, those granted to third parties do not give a right to deduction”. On the income tax side, these amounts are “taxable benefits”.
Scope. An answer of principle, prior to the CGI: it referred to Article 7-2° of Law no. 24-86 on corporate tax and Article 65 of Law no. 17-89 on general income tax (IGR), both now repealed.
Transposition to 2026. Under the 2026 CGI:
- deduction by the company falls under Article 10-I-D (“other cash or in-kind benefits granted to employees”);
- taxation of the employee falls under Article 56, with valuation at actual value (Art. 58-I);
- gift vouchers given to third parties fall under Article 11-IV (gratuitous benefit).
As no exemption in Article 57 covers gift vouchers, the 2003 solution remains valid in 2026.
IS compendium 2000-2005, p. 79: gifts to customers
The IS compendium 2000-2005 (p. 79, “Gifts to customers”) shows that former Article 7-3° of the corporate tax law already set the maximum unit value at MAD 100: the threshold has been unchanged since at least that period. No DGI answer after 2003 on client gifts has been identified.
Key takeaways:
- In answer no. 64 of 19 February 2003, the DGI accepted the deduction of gift vouchers given to employees and refused it for gift vouchers given to third parties.
- Transposed to the 2026 CGI, this answer falls under Art. 10-I-D (deduction), Art. 56 and 58-I (employee income tax) and Art. 11-IV (third parties).
- The MAD 100 cap per promotional gift already appeared in former art. 7-3° of the corporate tax law (IS compendium 2000-2005, p. 79).
Application in 2026: worked example
Assumptions. A company subject to corporate tax distributes:
- batch 1: 100 gifts bearing its logo, unit value MAD 80;
- batch 2: 100 gifts bearing its logo, unit value MAD 250;
- batch 3: 100 gifts of MAD 80 without a logo;
- a MAD 1,000 gift voucher to an employee, and another MAD 1,000 voucher to a client.
| Transaction | Corporate tax (company) | VAT on purchase | Recipient’s income tax |
|---|---|---|---|
| 100 logo gifts at MAD 80 | Deductible: 100 × 80 = MAD 8,000 (Art. 10-I-B-1°) | Not deductible (Art. 106-I-5°; NC 717 vol. 2 p. 170) | — (client) |
| 100 logo gifts at MAD 250 | Gratuitous benefit: MAD 25,000 added back in full, not only the part above MAD 100 (Art. 11-IV; NC 717 vol. 1 p. 187) | Not deductible (Art. 106-I-5°) | — |
| 100 gifts at MAD 80 without logo | Mention condition not met: MAD 8,000 added back (Art. 10-I-B-1° a contrario, Art. 11-IV) | Not deductible | — |
| MAD 1,000 gift voucher to an employee | Deductible as staff cost (Art. 10-I-D; DGI answer no. 64/2003) | Not settled by the texts | Taxable benefit of MAD 1,000 (Art. 56, 58-I) |
| MAD 1,000 gift voucher to a client or third party | Not deductible (DGI answer no. 64/2003; Art. 11-IV) | Not settled by the texts | — |
Out of the three batches of client gifts (MAD 41,000 in total), only MAD 8,000 is deductible. The remaining MAD 33,000 is added back to taxable profit.
The employee’s income tax on a MAD 1,000 gift voucher
Assumption. The employee earns MAD 240,000 of annual taxable gross income. Deductible social security and pension contributions are not quantified here.
| Step | Calculation | Legal basis |
|---|---|---|
| Professional expenses | 25% × 240,000 = MAD 60,000, capped at MAD 35,000 | Art. 59-I-A |
| Net taxable income before the voucher | 240,000 − 35,000 = MAD 205,000 | Art. 58-I |
| Marginal bracket | Above MAD 180,000: 37% | Art. 73-I |
| Effect of the gift voucher | Cap reached: +MAD 1,000 of net taxable income | Art. 56, 59-I-A |
| Additional income tax | 1,000 × 37% ≈ MAD 370 | Art. 73-I |
For an employee still below the MAD 35,000 cap, the net taxable benefit is 1,000 × (1 − 25%), i.e. MAD 750, or 1,000 × (1 − 35%), i.e. MAD 650 if annual taxable gross income does not exceed MAD 78,000. The employee’s marginal rate then applies.
Comparison. Paid as meal vouchers, the same MAD 1,000 would be exempt up to MAD 40 per working day and 20% of taxable gross salary (Art. 57-13°).
Key takeaways:
- 100 logo gifts at MAD 80 each are deductible from corporate tax for MAD 8,000 (Art. 10-I-B-1° of the 2026 CGI).
- 100 logo gifts at MAD 250 each are added back for MAD 25,000, in full (Art. 11-IV; NC 717, volume 1, p. 187).
- A MAD 1,000 gift voucher costs about MAD 370 in income tax for an employee taxed in the 37% bracket (Art. 73-I of the 2026 CGI, scale of Finance Law no. 60-24 for 2025).
Points to watch
- Exactly MAD 100. The law says “maximum unit value of one hundred (100) dirhams”; NC 717 (p. 188) says “below one hundred (100) DH”. The statute prevails: a MAD 100 gift is deductible (Art. 10-I-B-1°).
- Two cumulative conditions, full add-back. If one condition is missing (value or mention), the entire gift is added back, not only the fraction above MAD 100 (Art. 11-IV; NC 717, volume 1, p. 187).
- No MAD 100 tolerance for VAT. VAT on client gifts, even below MAD 100, is not recoverable (Art. 106-I-5°). The corporate tax cap does not carry over to VAT.
- Medical samples: a sector-specific regime. It is reserved for pharmaceutical laboratories and is not subject to the MAD 100 cap, provided the income/expense entry is recorded VAT included or the free units are declared under Article 151 (NC 717, volume 1, p. 138). No source extends it to other sectors.
- Three distinct regimes. Only tourism vouchers (Art. 57-24°) and meal vouchers (Art. 57-13°, MAD 40 per day, 20% of taxable gross salary) are exempt from income tax. The gift voucher is always taxable.
- Gift voucher given to a third party. Client or partner: it is not deductible, whatever its amount. The MAD 100 cap does not apply, since a voucher bears neither acronym nor brand (DGI answer no. 64 of 19 February 2003; Art. 11-IV).
- An answer from 2003. DGI answer no. 64 refers to repealed texts: it is cited together with Articles 10-I-D, 56 and 11-IV of the 2026 CGI.
Questions not settled by the texts
- MAD 100 value excluding or including VAT: neither the CGI nor NC 717 says.
- Social security contributions (CNSS, AMO) on gift vouchers: texts outside the CGI, not covered here.
- VAT on the purchase of gift vouchers and the issuer’s VAT regime: no source.
- Free distribution of goods produced by the company itself: no text or doctrine on gifts.
- Non-medical samples on the domestic market (cosmetics, food): neither text nor corporate tax doctrine; only the import VAT exemption (Art. 123-3°) is documented.
Key takeaways:
- A gift worth more than MAD 100, or not bearing the company’s name, acronym or brand, is added back in full (Art. 11-IV of the 2026 CGI).
- VAT on client gifts is not recoverable, whatever their amount (Art. 106-I-5° of the 2026 CGI).
- No provision of Art. 57 of the 2026 CGI exempts the gift voucher from income tax, unlike meal vouchers (57-13°) and tourism vouchers (57-24°).
Frequently asked questions
Is a client gift deductible from corporate tax?
Yes, if it is worth no more than MAD 100 per unit and bears the company name, trade name, acronym or the brand of its products (Art. 10-I-B-1°). Otherwise, it is a gratuitous benefit added back in full (Art. 11-IV; NC 717 p. 187).
Is a MAD 150 gift deductible up to MAD 100?
No. The whole expense is added back, not only the excess (Art. 11-IV; NC 717 p. 187-188).
Is the VAT on client gifts recoverable?
No, even below MAD 100. These are purchases of a gratuitous nature excluded from the deduction right (Art. 106-I-5°; NC 717 vol. 2 p. 170, which cites year-end gifts to customers).
Are gift vouchers given to employees subject to income tax?
Yes. They are cash benefits taxable in the employee’s hands (Art. 56, 58-I), with no exemption under Art. 57. For the company, they are deductible as staff costs (Art. 10-I-D; DGI answer no. 64 of 19/02/2003). Given to third parties, they are not deductible.
How do laboratories treat free medical samples?
They are deductible VAT included as an operating expense, provided their value is recorded in operating income and taken back, VAT included, as an expense. Free units supplied outside the invoice are deductible if they appear on the Art. 151 return (NC 717 vol. 1 p. 138; NC 245/03).
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