Corporate Income Tax in Morocco 2026: Rates & Rules

In brief: Corporate income tax (IS) in Morocco applies to company profits at proportional rates of 20% for profits below 100 million MAD and 35% for profits at or above 100 million MAD as of 2026. The DGI administers this tax on a declarative basis through the SIMPL portal.

Corporate Income Tax: This article provides a concise summary of the provisions of the General Tax Code (C.G.I) updated to 2026 regarding Corporate Income Tax. Under no circumstances should this summary substitute for a tax consultation or a detailed reading of the provisions of the CGI and the circulars in force.

Corporate Income Tax represents a key component of taxation in Morocco.

Corporate Income Tax - What is it?

Corporate Income Tax (CIT) in Morocco is a tax that applies to profits earned by companies (with the exception of partnerships that have the right to opt for personal income tax). It applies in particular to the profits of LLCs (limited liability companies) and PLCs (public limited companies).

It is a tax established on a declarative basis. This means that each company must file an annual tax return and spontaneously pay Corporate Income Tax (CIT).

What is the scope of application of CIT (Corporate Income Tax) in Morocco?

The scope of application is defined by two key factors:

First, territoriality (in which zone the tax applies)
Second, the attributions of persons (or entities to which it applies)

Territoriality

First of all, in terms of territories, this tax mandatorily applies to companies whose registered office is in Morocco. Furthermore, it may apply to companies that do not have their registered office in Morocco in the following cases:

If a company does not have its registered office in Morocco but has a so-called permanent establishment there (for example, carries out an activity in the form of a branch);
If a company carries out a profit-making activity in Morocco, the taxation of which is granted to Morocco under a double taxation avoidance agreement.

Moreover, it should be noted that under the provisions of circular 717 (which provides the Moroccan Tax Administration’s interpretation of the provisions of the General Tax Code), the following are deemed permanent establishments:

First, management or operating headquarters;
Then, branches, agencies, sales outlets;
Construction or assembly sites;
And finally, purchasing offices or counters operated in Morocco by a non-resident company that purchases goods there for resale in their original condition.

Taxable persons

The General Tax Code (CGI) stipulates that CIT mandatorily applies to the income, profits and revenues of:

companies regardless of their form or purpose;
public establishments and other legal entities carrying out profit-making operations;
associations and legally assimilated organizations in respect of their profit-making activities;
Funds created by legislation or by agreement;
Branches of non-resident companies or groups of said companies;

In certain forms of partnerships (for example, general partnerships, …), CIT may be due upon irrevocable election by the taxpayer.

What is the taxable base of Corporate Income Tax (CIT)?

CIT is based on the taxable income of the company, which must be determined according to the accounting rules in force in Morocco.

Under the provisions of Article 8-I of the C.G.I., the taxable income of each accounting period is the excess of revenues over expenses for the period.

Deductible expenses are considered to be expenses incurred or borne for the needs of the taxable activity.

In practice, the reconciliation table from accounting income to taxable income neutralizes, in particular, expenses considered as non-deductible, namely for example:

Expenses unrelated to the business operation
Fines, penalties and surcharges
Expenses not supported by proper documentation
Donations
Certain expenses whose deductibility is considered limited, for example:

depreciation allowances for passenger vehicles are accepted up to a total amount of 300,000 MAD per vehicle over a period of 5 years)
Limitation of the deductible amount to 50% for certain expenses when paid in cash;

In the case of a loss-making year, tax losses are carried forward over four fiscal years, with the exception of those relating to depreciation, which can be carried forward without time limitation.

What is the CIT (Corporate Income Tax) rate applicable in Morocco?

Updated with the provisions of the 2026 Finance Act.

The new rates applicable under the 2023 Finance Act are as follows:

Net income level	Currently applicable rate	2023 Finance Bill proposal
Net income level	2022	2023	2024	2025	2026
Less than or equal to 300,000	10%	12.5%	15%	17.5%	20%
From 300,001 to 1,000,000	20%	20%	20%	20%	20%
From 1,000,000 to 99,999,999	31%	28.25%	25.5%	22.75%	20%
Greater than or equal to 100,000,000	31%	32%	33%	34%	35%

Specific regimes

() Industrial activity refers to any activity that consists of directly manufacturing or transforming tangible movable goods using technical installations, equipment and tools whose role is predominant.*

It should also be noted that specific rates are provided for in certain cases: However, a rate of 20% is applied to the bracket where the net profit exceeds 1,000,000 dirhams, for certain activities (notably):

Exporting companies of goods and services
Hotels and tourist entertainment establishments
Artisanal enterprises
Private education or vocational training institutions
Agricultural operations

The General Code also provides specific regimes for certain types of companies:

Companies established in Casablanca Finance City:

These companies benefit from a 5-year exemption followed by a rate of 15% thereafter.

Companies engaged in service outsourcing activities:

These companies benefit from an exemption for a period of 5 years followed by a rate of 20% thereafter.

Finally, in accordance with the provisions of Article 6-II-B-4, certain industrial activities specified by decree benefit from a total CIT exemption during the first five (5) consecutive fiscal years from the date of the start of their operations.

Frequently Asked Questions

Who is subject to corporate income tax (IS) in Morocco?

All companies regardless of their legal form, including LLCs (SARL), PLCs (SA), and partnerships that opt for IS, are subject to corporate income tax. Public establishments and other legal entities carrying out profit-making activities are also liable. Some entities like agricultural cooperatives and associations may benefit from exemptions.

When must corporate income tax be paid in Morocco?

Companies must pay four quarterly provisional installments (acomptes provisionnels), each equal to 25% of the previous year’s tax liability. The regularization of any remaining balance is due by the end of the third month following the fiscal year-end. All payments and filings are made electronically through the SIMPL tax portal.

What exemptions are available for corporate income tax in Morocco?

New companies benefit from a total exemption during their first 5 fiscal years for export activities. CFC-status companies enjoy a reduced rate of 15%. Agricultural cooperatives and certain associations may be fully exempt. The Finance Law is regularly updated with new incentives, so consulting a tax specialist is recommended.

Minimum contribution

The tax due may not be less than 0.25% (2023 Finance Act) of annual pre-tax turnover (minimum CIT contribution), nor less than 3,000 MAD.

Thus, the minimum CIT contribution is due even in the case of a loss-making year. On the other hand, in the case of a profitable year, it is offset against the CIT. However, the portion of the minimum contribution exceeding CIT may be offset against CIT over the following 3 fiscal years.

In principle, an exemption from the minimum contribution applies during the three fiscal years following the creation of a company. However, this exemption does not apply when the entity is a public service concessionaire (Article 144 C 1 of the Moroccan CGI).

What are the payment methods for CIT?

Payment of the tax is made spontaneously through 4 quarterly provisional installments. In practice, the installments are calculated based on the tax due for the previous year. Furthermore, it should be noted that:

First, when the final amount of CIT for a given year exceeds the installments paid, the company makes a regularization. This regularization corresponds to the spontaneous payment of the balance by the company.
Second, in the case of excess tax, the company must automatically offset it against the provisional installments for subsequent fiscal years.

CIT filing is done by electronic declaration.

Have your tax package reviewed by Upsilon Consulting, member of the OEC, before filing.

Contact Upsilon Consulting

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