Corporate Tax Calculation in Morocco: An Overview

Corporate tax calculation is an important step for all businesses in Morocco. Indeed, with constant changes in regulations, it is important to ensure that the calculation of corporate tax and IS installments is up to date.

Corporate tax (IS) is one of the main items in the income and expense account.

Understanding and correctly calculating this tax is essential to optimize the taxation of your business and ensure its legal compliance. In this article, we guide you through the steps of corporate tax calculation in Morocco, providing you with precise information, practical examples and advice for effective tax management.

This article is up to date with the provisions of the 2024 finance law in Morocco.

Understanding Corporate Tax in Morocco

Calculation of corporate tax

This article does not aim to give a detailed analysis of the basic principle on IS. For more information on IS in Morocco, read this article .

Corporate tax in Morocco is a direct tax levied on profits made by companies. It applies to resident and non-resident companies which carry out a lucrative activity in the country.

Who is subject to IS?

Before explaining the rules for corporate tax calculation in Morocco, it is important to recall a few principles.

In Morocco, all companies, whether individuals or capital, are subject to IS. This includes SARL, SA, SNC, and other legal forms.

Calculation of corporate tax

Determination of the Taxable Base

The tax base is equal to the net profit made during the fiscal year. To calculate it, you must subtract the eligible charges and expenses from the business’s income.

Subject companies have the right to deduct carry-forward losses under certain conditions for the calculation of corporate tax.

Tax rate

The tax rate varies depending on the amount of profit made. It is important to refer to the scale in force to determine the rate applicable to your business.

Corporate tax calculation – Determination of tax result

Corporate tax calculation in morocco

The first step in calculating corporate tax is to determine the tax income of the company.

This result corresponds to the difference between income and expenses for the financial year. Furthermore, this result is determined after taking into account depreciation and provisions.

The tax result is determined on the basis of:

Certain expenses may not benefit from deductibility in Morocco, particularly when they are not linked to operations. Certain charges are explicitly excluded or limited.

Moroccan companies have the right to deduct deficits carried forward from previous years, under certain conditions.

Application of the tax rate for corporate tax calculation

Once the tax result has been determined, the tax rate in force for the financial year in question should be applied.

The tax rate varies depending on the profit the company makes.

Indeed, the new rates applicable to the 2023 finance law are as follows:

Net profit level Rate currently in effect PLF 2023 proposal
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%

Since 2023, Morocco has introduced a measure aimed at converging all rates towards a single rate of 20%.

The corporate tax rates applicable in 2024 are as follows (depending on the level of net income):

  • Less than or equal to 300,000: 15%
  • From 300,001 to 1,000,000: 20%
  • From 1,000,000 to 99,999,999: 25.5%
  • Greater than or equal to 100,000,000: 33%

Specific regime for the corporate tax calculation

(*) Industrial activity means any activity which consists of directly manufacturing or transforming tangible movable goods using technical installations, materials and tools whose role is preponderant.

It should also be noted that certain specific rates are provided for in certain cases:

However, the rate applied to the tranche for which the amount of net profit is greater than 1,000,000 dirhams is set at 20%, for certain activities (in particular):

  • companies exporting goods and services
  • hotels and tourist entertainment establishments
  • craft businesses
  • private educational or professional training establishments
  • agricultural exploitations

The general code also provides specific regimes for certain types of companies:

These companies benefit from a 5-year exemption then a rate of 15% beyond that.

These companies benefit from the exemption for a period of 5 years then a rate of 20% beyond.

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

Corporate tax calculation – Proportional rates

The calculation of corporate tax in Morocco is a process that relies on the application of proportional rather than progressive rates. This is an important distinction in the tax field.

To understand this difference, it is essential to understand that:

  • On the one hand, in a progressive system, the tax rate increases as the tax base (income or profit) increases. In other words, the more profit a company makes, the higher the percentage of tax levied on the additional profit.
  • On the other hand, in a proportional rate system, such as that used to calculate corporate tax in Morocco, the tax rate remains constant, regardless of the level of profit made by the company.

This means that the entire profit is taxed at the rate of the bracket, even if you only exceed this bracket by one dirham.

All companies are subject to the same tax rate for a given amount of profit, thus ensuring a certain predictability and uniformity in the calculation of tax.

This proportional system is often considered simpler, because it eliminates the variable rate tiers that characterize progressive systems. However, it remains questionable as to its fairness, two companies close to the level could be taxed at different rates. It is in particular this argument which pushed towards a standardization of rates by 2026.

Taking into account installment payments

Businesses must make installment payments throughout the tax year.

These advance payments correspond to an estimate of the corporate tax that the company will have to pay at the end of the financial year.

When calculating the final corporation tax, installment payments must therefore be taken into account.

Each installment corresponds to 25% of the tax amount for the reference year.

If the amount of the deposits is greater than the amount of tax due, the company may request a refund.

Conversely, if the amount of the deposits is less than the amount of tax due, the company will have to pay the difference.

It should be noted that installment payments must be calculated on the basis of the IS rate in force during the current year. It is therefore appropriate to adjust the amount of tax to take into account the change in rate.


Calculating corporate tax is an important step for all businesses in Morocco.

It is necessary to determine the tax result, apply the tax rate in force, take into account installment payments and deduct any tax credits.

If you have any questions about calculating corporate tax in Morocco, do not hesitate to contact an accountant who can assist you in this process.

Read also:  Payment deadlines in Morocco 

Tips for effective tax management in Morocco

Tax planning is an essential strategic process for any business in Morocco. It involves the analysis of financial transactions with the aim of minimizing the tax burden, while respecting current legislation. Here are some key things to consider:

Understanding the Moroccan Tax System

It is crucial to fully understand the Moroccan tax system, which can be complex due to its numerous laws and regulations. This includes knowing the different types of taxes, applicable rates, deductions and tax credits available.

Use of Tax Incentives

Morocco offers various tax incentives to encourage investment in certain sectors or regions. Businesses should learn about these opportunities to benefit from tax reductions, tax credits or other tax benefits.

Tax Loss Management

Effective tax loss management is an important aspect of tax planning. In Morocco, losses can often be carried forward over several years, which makes it possible to reduce the tax base in future years.

Consultation of Tax Experts

It is strongly recommended to consult qualified tax experts or accountants in Morocco. These professionals can provide personalized advice and help develop tax strategies tailored to your business’s specific situation.

Compliance and Declarations

Tax compliance is a crucial aspect of running a business in Morocco. Here are some tips to ensure optimal compliance:

Respect of deadlines

Businesses must be vigilant about tax filing and payment deadlines. In Morocco, failure to meet these deadlines can result in severe penalties, late payment interest and legal complications.

Documentation and Records

Maintaining accurate and complete documentation is essential. This includes maintaining accounting records, invoices, receipts and other relevant documentation.

Use of Accounting Software

Adopting modern accounting software can greatly facilitate tax management. These tools enable accurate transaction tracking, automatic report generation, and simplified tax return preparation.

Continuing Education

As tax legislation may change, it is important that financial managers and accountants keep themselves regularly informed of the latest changes and tax practices in Morocco.

By following this advice, businesses in Morocco can not only ensure their tax compliance but also optimize their tax burden, thus contributing to better financial health and sustained growth.


Do not hesitate to contact Upsilon Consulting for all accounting and tax issues in Morocco.

FAQ on Calculating Corporate Tax in Morocco (2024)

Q1: What types of companies are subject to Corporate Tax (IS) in Morocco? A: In Morocco, all companies, including SARL, SA, SNC, and other legal forms, are subject to IS. This applies to resident and non-resident companies carrying out gainful activity in the country.

Q2: How is the tax base for IS determined in Morocco? A: The tax base for IS is equal to the net profit made during the fiscal year. It is calculated by subtracting eligible charges and expenses from the company’s income.

Q3: What are the tax rates applied for IS in Morocco in 2024? A: The rates vary depending on the net profit: up to 300,000 DH (15%), from 300,001 to 1,000,000 DH (20%), from 1,000,000 to 99,999,999 DH (25.5%), and greater than or equal to 100,000,000 DH (33%).

Q4: Are there specific regimes for corporate tax calculation in Morocco? A: Yes, there are specific rates for certain activities and special regimes for types of companies such as those established in Casablanca Finance City or carrying out service outsourcing activities.

Q5: How are installment payments taken into account in the of corporate tax calculation ? A: Companies must pay installments estimated at 25% of the amount of corporate tax for the reference year. These installments are adjusted during the final calculation of the IS for the current financial year.