Corporate Tax (IS) Morocco 2026 — Rates, Calculation, Examples

In brief: Since 1 January 2026, the final corporate tax rates in Morocco are: 20% (net taxable profit < 100 M MAD), 35% (≥ 100 M MAD) and 40% (credit institutions and insurance companies). These rates are proportional: a single rate applies to the entire net taxable profit. The minimum contribution is set at 0.25% (minimum MAD 3,000). These rates result from the reform initiated by the 2023 Finance Law (No. 50-22), whose four-year progressive convergence is now complete. Use our corporate tax rate calculator to determine the rate applicable to your company.

1. Final Corporate Tax Rates Applicable from 1 January 2026

The target rates of the tax reform are fully in force for fiscal years beginning on or after 1 January 2026, as set out in the 2026 Finance Law. They are as follows:

Company category	Corporate tax rate
Standard — net taxable profit < 100 M MAD	20%
Large companies — net taxable profit ≥ 100 M MAD	35%
Credit institutions, Bank Al-Maghrib, CDG, insurance and reinsurance companies	40%
CFC companies and Industrial Acceleration Zones (IAZ)	20% regardless of profit

Exclusion from the 35% rate: companies incorporated from 1 January 2023 onwards that commit, under a convention signed with the State, to invest at least MAD 1.5 billion over a period of five years from the date of signature are excluded from the 35% rate. The investment must relate to tangible fixed assets held for at least 10 years. Public establishments and enterprises and their subsidiaries are excluded from this scheme (Article 19-I-B of the CGI).

Return to the 20% rate: where a company previously subject to the 35% rate sees its net taxable profit fall below MAD 100 million, the 20% rate only applies again if the profit remains below that threshold for three consecutive fiscal years (Article 19-I of the CGI).

Legal basis: Article 19-I of the General Tax Code (CGI), as amended by the 2023 Finance Law (No. 50-22), applicable to fiscal years beginning on or after 1 January 2026.

Proportional rate: a fundamental distinction

Since the 2022 Finance Law, Moroccan corporate tax is a proportional tax. This means that a single rate applies to the entire net taxable profit of the company, unlike the former progressive scale where each profit bracket was taxed at a different rate (as with income tax).

Practical example: a company generates a net taxable profit of MAD 5,000,000 in 2026. The applicable rate is 20% (profit < 100 M MAD). The corporate tax due is:

5,000,000 × 20% = MAD 1,000,000

Under the former progressive scale (before 2022), the calculation would have been:

300,000 × 10% = 30,000

700,000 × 20% = 140,000

4,000,000 × 31% = 1,240,000

Total = MAD 1,410,000

The difference is significant: the proportional system is more advantageous for companies with profits exceeding approximately MAD 1.1 million, but less favourable for very small businesses.

2. How to Calculate Corporate Tax in 2026

The corporate tax calculation involves four steps:

Step 1: Determine the taxable profit

The taxable profit is calculated from the accounting result, adjusted for tax corrections:

Taxable profit = Accounting result + Tax add-backs − Tax deductions

Add-backs include non-deductible expenses (fines, excess donations, non-compliant depreciation, personal expenses, etc.). Deductions include exempt income (Moroccan-source dividends, capital gains reinvested under certain conditions, etc.).

Step 2: Apply the proportional rate

Apply the rate corresponding to the entire net taxable profit:

Profit < 100 M MAD → 20%
Profit ≥ 100 M MAD → 35%
Credit institution / insurance → 40%

Step 3: Calculate the minimum contribution

MC = MC base × 0.25% (minimum MAD 3,000)

Step 4: Determine the tax due

Tax due = MAX (Tax at proportional rate, Minimum contribution)

If the taxable result is negative or nil, the company pays the minimum contribution (except for the exemption during the first three fiscal years). Tax losses may be carried forward for four years.

Example 1 — SME (profit < 100 M MAD)

A service LLC achieves the following results in 2026:

Item	Amount (MAD)
Accounting result	1,800,000
Tax add-backs	200,000
Tax deductions	50,000
Taxable profit	1,950,000
Operating revenue (MC base)	12,000,000

Corporate tax: 1,950,000 × 20% = MAD 390,000

Minimum contribution: 12,000,000 × 0.25% = MAD 30,000

Tax due = MAX (390,000; 30,000) = MAD 390,000

Corporate tax is paid in 4 quarterly provisional instalments (25% each) during the fiscal year, with a final adjustment at the annual filing. For more details, see our guide on provisional instalments.

Example 2 — Large company (profit ≥ 100 M MAD)

An industrial company generates a net taxable profit of MAD 150,000,000 in 2026:

Corporate tax: 150,000,000 × 35% = MAD 52,500,000

The 35% rate applies to the entire profit, not just the portion exceeding 100 M MAD. This is the principle of the proportional rate: once the threshold is reached, the higher rate applies to the full amount.

Warning — Threshold effect: a company whose profit rises from MAD 99 M to MAD 101 M sees its corporate tax jump from MAD 19.8 M (99 × 20%) to MAD 35.35 M (101 × 35%), an increase of +78%. This warrants careful tax planning.

3. The Minimum Contribution

The minimum contribution (MC) is the floor for corporate tax. Even where the company reports a loss, the MC is payable (unless exempt).

Parameter	2026 value
Rate	0.25% (since the 2023 Finance Law)
Minimum amount	MAD 3,000
Tax base	Operating revenue + financial income + grants and subsidies received
Exemption	First 36 months of activity (3 fiscal years)

History of the minimum contribution

Period	MC rate
Before 2022	0.50%
2022 (FL 2022)	0.40%
Since 2023 (FL 2023)	0.25%

The MC is a minimum tax: if the corporate tax calculated is lower than the MC, the MC is due. The excess MC over the corporate tax may be offset against corporate tax surpluses over the following three fiscal years (Article 144 of the CGI).

4. Complete History of Corporate Tax Rate Changes (2019-2026)

Moroccan corporate tax has undergone a profound overhaul over a few years. Understanding this evolution is essential for interpreting past tax assessments and planning tax obligations.

Before 2020 — PROGRESSIVE scale

Until the 2019 fiscal year, corporate tax was calculated using a progressive bracket scale, similar in logic to income tax:

Net taxable profit bracket	Rate
Up to MAD 300,000	10%
From MAD 300,001 to 1,000,000	20%
Above MAD 1,000,000	31%

Progressive means each profit bracket was taxed at its own rate. A company with MAD 2 M in profit would pay: (300,000 × 10%) + (700,000 × 20%) + (1,000,000 × 31%) = MAD 480,000.

Special rates:

17.5%: export companies (after 5-year exemption), CFC companies, IAZ (capped)
37%: credit institutions, insurance, Bank Al-Maghrib, CDG

Reference: Circular Note No. 730 — FL 2020

FL 2020 — Start of industrial convergence

The 2020 Finance Law launched the first step of modernisation:

The marginal rate of 31% was reduced to 28% for industrial companies with turnover below 100 M MAD
The capped rate for exporters/CFC/IAZ rose from 17.5% to 20%
The scale remained progressive: the 10% and 20% brackets continued

Reference: Circular Note No. 730 — FL 2020

FL 2022 — Elimination of progressivity

The 2022 Finance Law marked a major structural change:

Abandonment of the progressive scale in favour of proportional rates
Henceforth, a single rate applies to the entire profit
The reduced industrial rate fell from 28% to 26%
The minimum contribution decreased from 0.50% to 0.40%

The switch to proportional rates simplifies the calculation but creates threshold effects: crossing a profit limit triggers the higher rate on the entire result.

Reference: Circular Note No. 732 — FL 2022

FL 2023 — The comprehensive reform (the most significant)

The 2023 Finance Law (No. 50-22) introduced a progressive convergence over 4 fiscal years (2023-2026) towards simplified target rates. This is the most structural reform of corporate taxation in Morocco since the creation of the CGI.

Complete transitional rates table 2023-2026

Category	Before 2023	2023	2024	2025	Target 2026
Former 10% (SME ≤ 300K)	10%	12.5%	15%	17.5%	20%
Former 20% (300K-1M)	20%	20%	20%	20%	20%
Former 31% (> 1M, < 100M)	31%	28.25%	25.5%	22.75%	20%
Former 31% (≥ 100M)	31%	32%	33%	34%	35%
Industrial 26% (< 100M)	26%	24.5%	23%	21.5%	20%
CFC / IAZ (former 15%)	15%	16.25%	17.5%	18.75%	20%
Credit / insurance (former 37%)	37%	37.75%	38.5%	39.25%	40%

Withholding tax on dividends: 15% → 13.75% → 12.5% → 11.25% (2026) → 10% (from 2027, Art. 247-XXXVII-C)

Minimum contribution: reduced from 0.40% to 0.25% from 2023.

Reference: Circular Note No. 733 — FL 2023

FL 2024 — Clarification of the 100 M MAD threshold

The 2024 Finance Law provides an important clarification: the MAD 100 million threshold triggering the 35% rate is assessed on the total net taxable profit, including where the threshold is exceeded due to non-recurring income (capital gains on asset disposals, insurance indemnities, etc.).

Reference: Circular Note No. 735 — FL 2024

FL 2025 — No change to corporate tax rates

The 2025 Finance Law does not modify corporate tax rates. The transitional rates prescribed by the 2023 reform continue to apply on schedule. The main provisions concern:

Increased depreciation cap for passenger vehicles
Group restructuring provisions

Reference: Circular Note No. 736 — FL 2025

FL 2026 — Target rates reached + adjustments

The target rates from the 2023 reform are now fully in effect as of 1 January 2026. The 2026 Finance Law also introduces the following adjustments:

Microfinance companies incorporated as SA: standard rate (20% or 35%) instead of 40%, for a period of 5 years
Exemption from withholding tax on sums paid for maritime chartering

Reference: Circular Note No. 737 — FL 2026

5. Special Cases and Preferential Regimes

Certain categories of companies benefit from derogatory regimes under Articles 6 and 7 of the CGI:

Export companies

Full exemption from corporate tax for the first 5 fiscal years following the first export transaction
Then a rate of 20% (capped) on export revenue

Companies based in Casablanca Finance City (CFC)

Full exemption for 5 years (60 months maximum from CFC status date)
Then a rate of 20%, regardless of profit level

Industrial Acceleration Zones (IAZ)

Full exemption for 5 years
Then a rate of 20%, regardless of the 100 M MAD threshold

Hotel companies

Full exemption for 5 years on the share of revenue earned in duly repatriated foreign currency
Then the standard rate (20% or 35% depending on the result) on that same share

Agricultural operations

Permanent exemption for farms with annual turnover below MAD 5,000,000

Cooperatives

Permanent exemption for cooperatives with annual turnover (excluding VAT) below MAD 10,000,000

Outsourcing / offshoring companies

Full exemption for the first 5 fiscal years following the start of operations
Then the standard rate (20% or 35% depending on the result)

In addition to corporate tax, companies whose net taxable profit is equal to or exceeds MAD 1,000,000 are subject to the social solidarity contribution (CSS), extended by the 2026 Finance Law.

Net taxable profit bracket	CSS rate
MAD 1,000,000 to 5,000,000	1.5%
MAD 5,000,001 to 10,000,000	2.5%
MAD 10,000,001 to 40,000,000	3.5%
Above MAD 40,000,000	5%

The CSS is calculated on the net taxable profit and is added to corporate tax. It is not deductible from taxable income.

Example: a company with a net taxable profit of MAD 8,000,000 pays:

Corporate tax: 8,000,000 × 20% = MAD 1,600,000
CSS: 8,000,000 × 1.5% = MAD 120,000 (proportional rate applicable to profit in the 1M-5M bracket — NB: the CSS, like corporate tax, is proportional, not progressive)
Total tax burden: MAD 1,720,000, i.e. an effective rate of 21.5%

7. FAQ — Frequently Asked Questions

What are the corporate tax rates applicable in 2026?

The final rates are: 20% (profit < 100 M MAD), 35% (profit ≥ 100 M MAD) and 40% (credit institutions, insurance, CDG, Bank Al-Maghrib). CFC and IAZ companies benefit from the 20% rate regardless of profit.

Is corporate tax progressive or proportional?

Corporate tax has been proportional since the 2022 Finance Law. A single rate applies to the entire net taxable profit. The former progressive bracket scale (10%, 20%, 31%) has been abolished. This should not be confused with income tax, which remains progressive (see our article on the former progressive scale).

What is the minimum contribution rate?

The minimum contribution is 0.25% of the base comprising operating revenue, financial income and grants, with a minimum of MAD 3,000. Companies are exempt during the first 36 months of activity.

When is corporate tax due?

Corporate tax is paid in 4 provisional instalments, each equal to 25% of the previous year’s tax:

1st instalment: by the end of the 3rd month
2nd instalment: by the end of the 6th month
3rd instalment: by the end of the 9th month
4th instalment: by the end of the 12th month

The final adjustment occurs upon filing of the annual return, by 31 March of the following fiscal year at the latest.

What happens if my profit exceeds 100 M MAD?

The 35% rate applies to the entire net taxable profit, not just the portion exceeding 100 M MAD. It is a threshold trigger, not a bracket. This rule applies even where the excess results from non-recurring income (FL 2024 clarification).

My profit drops back below 100 M MAD: can I return to the 20% rate?

Yes, but not immediately. Where a company has been subject to the 35% rate and its net taxable profit falls below MAD 100 million, the 20% rate only applies again if the profit remains below that threshold for three consecutive fiscal years. This rule aims to prevent frequent switching between rates and to ensure stability in tax application (Article 19-I of the CGI).

8. Links to DGI Circular Notes

The circular notes of the General Tax Directorate are the official source for interpreting tax provisions:

Corporate Tax in Morocco — Complete Guide

Deductible Expenses for Corporate Tax

Provisional Instalments for Corporate Tax

Dividends in Morocco: Withholding Tax

Carryforward Deficits in Morocco

Morocco Finance Law 2026

Casablanca Finance City (CFC)

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