In brief: Corporate Tax (IS) calculation in Morocco involves determining taxable income, applying the proportional rate from the applicable bracket, and deducting provisional installments already paid. Since the 2023 Finance Law, Morocco is progressively converging all IS rates toward a unified 20% rate by 2026.
Calculating Corporate Tax (IS) is a critical step for all businesses in Morocco. With the constant evolution of tax regulations, it is essential to ensure that the calculation of Corporate Tax and the provisional IS installments is up to date.
Corporate Tax (IS) is one of the main items on the income statement (CPC).
Correctly calculating this tax is essential to optimize your company’s tax position and ensure legal compliance with the General Tax Code (CGI). This guide walks you through the steps of computing IS in Morocco, providing accurate information, practical examples, and advice for effective tax management.
This article is up to date with the provisions of Finance Act No. 50-25 for the 2026 budget year.
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Understanding Corporate Tax in Morocco
Corporate Tax in Morocco is a direct tax levied on the profits earned by businesses. It applies to both resident and non-resident companies that carry out a profit-making activity in the country.
Who Is Subject to Corporate Tax?
In Morocco, IS applies by law to capital companies (SARL, SARLAU, SA, SAS), to public establishments and other legal entities carrying out profit-making operations, to associations in respect of their profit-making activities, to branches of non-resident companies and, since the 2025 Finance Act, to joint ventures (sociétés en participation) including at least one legal entity or more than five individuals, as well as to economic interest groupings (Art. 2-I of the CGI). By contrast, general partnerships (SNC) and limited partnerships (SCS) made up solely of individuals, as well as de facto partnerships between individuals, are excluded from the scope of IS (Art. 3) and fall under personal income tax, unless they irrevocably opt for IS (Art. 2-II).
Corporate Tax Calculation
Determining the Taxable Base
The taxable base equals the net profit earned during the fiscal year. To calculate it, allowable expenses and charges must be subtracted from the company’s revenues.
Companies subject to IS are entitled to deduct carryforward deficits under certain conditions when calculating Corporate Tax.
Tax Rates
The tax rate varies depending on the level of profit earned. It is important to refer to the applicable tax schedule to determine the rate for your company.
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Corporate Tax Calculation - Determining Taxable Income
The first step in calculating Corporate Tax is to determine the company’s taxable income.
This result corresponds to the difference between revenue and expenses for the fiscal year. Furthermore, this amount is determined after taking into account depreciation and provisions.
Taxable income is determined based on:
- First, taxable revenue;
- Second, deductible expenses.
Certain expenses may not qualify for deductibility in Morocco, particularly when they are not related to the business operations. For a detailed analysis, see our guide on deductible expenses for corporate tax in Morocco. Some expenses are explicitly excluded or limited.
Moroccan companies are entitled to deduct carryforward deficits from prior fiscal years, subject to certain conditions.
Applying the Tax Rate When Calculating Corporate Tax
Once the taxable income is determined, the applicable tax rate for the relevant fiscal year must be applied.
The tax rate varies depending on the profit achieved by the company.
The new rates applicable under the 2023 Finance Act are as follows:
| **Net profit level** | **2022 rate (reference)** | **Transitional convergence rates — Art. 247-XXXVII-A** | |||
| **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 1 January 2026, the convergence is complete. The Corporate Tax rates in force are as follows (based on net profit level):
- Less than 100,000,000 MAD: 20%
- Greater than or equal to 100,000,000 MAD: 35%
- Credit institutions, Bank Al-Maghrib, CDG and insurance companies: 40%
Special Regimes for Corporate Tax Calculation
() Industrial activity refers to any activity that involves directly manufacturing or transforming tangible movable goods through technical facilities, equipment, and tools whose role is predominant.*
Before the convergence of rates was completed, a specific regime capped at 20% the rate applied to the bracket where the net profit exceeded 1,000,000 dirhams for certain activities, such as:
- Goods and services export companies
- Hotels and tourism entertainment establishments
- Artisanal enterprises
- Private educational or vocational training institutions
- Agricultural operations
Since 1 January 2026, this mechanism no longer applies: these activities fall under the standard regime (20%, or 35% if net profit ≥ 100 M MAD).
The General Tax Code also provides special 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 20% thereafter, regardless of profit level (excluded from the 35% rate).
- Companies engaged in service outsourcing activities:
These companies benefit from an exemption for a period of 5 years followed by the standard rate (20%, or 35% if net profit ≥ 100 M MAD) thereafter.
Finally, in accordance with the provisions of Article 6-II-B-4, certain industrial activities specified by decree benefit from a full IS exemption for the first five (5) consecutive fiscal years from the date of the start of their operations.
Corporate Tax Calculation - Proportional Rates
Corporate Tax calculation in Morocco is a process that relies on the application of proportional rates rather than progressive rates. This is an important distinction in the field of taxation.
To understand this difference, it is essential to grasp that:
- On one hand, in a progressive system, the tax rate increases as the taxable base (income or profit) increases. In other words, the more profit a company earns, the higher the percentage of tax levied on the additional profit.
- On the other hand, in a proportional rate system, such as the one used for Corporate Tax calculation in Morocco, the tax rate remains constant regardless of the level of profit earned by the company.
This means that the entire profit is subject to the rate of the applicable bracket, even if you exceed that bracket by just one dirham.
This proportional system is simpler as it eliminates the variable rate tiers that characterize progressive systems. However, it remains questionable in terms of fairness, as two companies close to the threshold could be subject to different rates. This is precisely the argument that has driven the move toward rate standardization by 2026.
Taking Provisional Installments into Account
Companies must pay provisional installments throughout the fiscal year.
These installments represent an estimate of the Corporate Tax that the company will owe at the end of the fiscal year.
When calculating the final Corporate Tax, the provisional installments must therefore be taken into account.
Each installment corresponds to 25% of the tax amount from the reference fiscal year.
If the total installments exceed the final tax amount, the surplus is automatically offset by the company against the provisional installments due for the following fiscal years and, where applicable, against the corporate tax due for those years (Art. 170-IV). This is not an option: outside a cessation of business, no cash refund is provided for, and the credit is carried forward until it is fully absorbed by offsetting.
Conversely, if the total installments are less than the final tax amount, the company must pay the difference.
It should be noted that, on a transitional basis, the provisional installments due for each fiscal year opened between 1 January 2023 and 31 December 2026 are calculated according to the corporate tax rates applicable to the current fiscal year, and not those of the reference year (Art. 247-XXXVII-B). For fiscal years opened on or after 1 January 2027, the basis reverts to the tax due for the last closed fiscal year (Art. 170-I).
Conclusion
Calculating Corporate Tax is a critical step for all businesses in Morocco.
It involves determining the taxable income, applying the applicable tax rate, taking into account provisional installments, and deducting any available tax credits.
Consult a chartered accountant registered with the OEC to ensure your IS computation is accurate. Understanding corporate tax is essential when you create a company in Morocco.
Minimum Contribution (Cotisation Minimale)
Regardless of their profit or loss, companies subject to IS must pay a minimum contribution calculated at 0.25% of turnover and certain other income, with a floor of 3,000 MAD. Companies in their first 36 months of operation are exempt from this minimum contribution. When the IS computed exceeds the minimum contribution, the company pays the higher amount. When the minimum contribution exceeds the IS, the surplus is definitively retained by the Treasury: since the 2016 Finance Act (Law No. 70-15, Art. 144-I-E of the CGI), it can no longer be offset against the IS of subsequent fiscal years, the minimum contribution credit having been abolished for IS purposes.
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What IS rate applies to your company? Try our interactive Corporate Tax Calculator to find the exact rate based on your activity, turnover and fiscal year.
Frequently Asked Questions
Who does Corporate Tax (IS) apply to in Morocco?
In Morocco, IS applies by law to capital companies (SARL, SA, SAS), to public establishments and legal entities carrying out profit-making operations, to branches of non-resident companies and, since the 2025 Finance Act, to joint ventures (sociétés en participation) including at least one legal entity or more than five individuals, as well as to economic interest groupings (Art. 2-I). General partnerships (SNC) and limited partnerships (SCS) made up solely of individuals are excluded (Art. 3) and fall under personal income tax, unless they irrevocably opt for IS (Art. 2-II). The tax covers both resident and non-resident companies in respect of their profit-making activities in Morocco.
How is the taxable base determined for IS in Morocco?
The taxable base for IS equals the net profit of the fiscal year. This is the accounting result that the company must adjust for tax add-backs and deductions.
What are the tax rates applied for IS in Morocco in 2026?
The 2026 target rates are: up to 100,000,000 MAD (20%), and greater than or equal to 100,000,000 MAD (35%).
Are there special regimes for IS calculation in Morocco?
Yes, there are specific rates for certain activities and special regimes for types of companies such as those established in Casablanca Finance City or engaged in service outsourcing activities.
How are provisional installments taken into account in the IS calculation?
Provisional installments are advance payments made throughout the fiscal year, calculated based on the corporate tax rate in effect during the current year. At year-end, the total of these installments is compared to the final IS liability: if the installments exceed the tax due, the surplus is automatically offset against the provisional installments of the following fiscal years and, where applicable, against the tax due for those years (Art. 170-IV); if they fall short, the company must pay the remaining difference.
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