Key takeaways: In Morocco, the corporate tax exemption is not a welcome gift handed to every new company — that’s a myth. The 5-year exemption does exist, but it is reserved for specific activities listed in article 6 of the General Tax Code: industry, service outsourcing, industrial acceleration zones (ZAI), CFC status, hospitality in foreign currency, and sports companies. For everyone else, what is genuinely general is the exemption from the minimum contribution during the first 36 months.
The “5 years tax-free” myth
It’s one of the most repeated lines out there: “In Morocco, when you set up your company, you pay no tax for 5 years.” It’s false — at least as a general rule. A standard trading or services company is liable to corporate tax from its very first profitable year.
So where does the confusion come from? From mixing up two different mechanisms:
- The exemption from the minimum contribution for 36 months (article 144 of the CGI). That one does apply to every new company. But it only waives the minimum tax (0.25% of turnover) — not the corporate tax on profit.
- The full 5-year corporate tax exemption (article 6-II-B), which is reserved for certain activities.
In other words: if your company turns a profit, it pays corporate tax from year one… unless it falls under one of the regimes below.
Companies permanently exempt from corporate tax (article 6-I-A)
Some entities are exempt without any time limit, by virtue of their very nature:
- cooperatives and their unions whose turnover is below 5 M MAD;
- associations and non-profit bodies, for activities consistent with their purpose;
- UCITS, FPCT, OPCI and OPCC funds (to avoid double taxation of unit-holders);
- agricultural operators whose turnover is below 5 M MAD;
- recognized foundations and certain public agencies.
Temporary 5-year exemptions (article 6-II-B)
This is where the real “5 years without corporate tax” lives — but activity by activity, each with its own conditions.
| Exempt company | Legal basis | Duration | Key condition |
|---|---|---|---|
| Industrial companies (activities set by decree) | Art. 6-II-B-4° | 5 years | Activity listed in decree no. 2-17-743 of 19 June 2018 |
| Service outsourcing (offshoring) | Art. 6-II-B-4° | 5 years | Activity compliant with the rules (inside or outside a P2I platform) |
| Hotel businesses | Art. 6-II-B-5° | 5 years | On the turnover earned in foreign currency repatriated |
| Tourism real-estate residences (law 01-07) and tourism entertainment | Art. 6-II-B-5° | 5 years | Foreign-currency turnover + declaratory statement |
| Companies with CFC status (excluding credit/insurance) | Art. 6-II-B-6° | 5 years | Ends at 60 months after incorporation |
| Sports companies (law 30-09) | Art. 6-II-B-7° | 5 years | From the 1st taxable sale |
| Industrial acceleration zones (law 19-94) | Art. 6-II-B-8° | 5 years | Excludes construction sites, credit, insurance |
| Tangier-Mediterranean project in a ZAI | Art. 6-II-B-9° | 5 years | Same regime as the ZAI |
A few points that make all the difference in practice:
- Industry & service outsourcing: the 4° covers industrial companies whose activity appears on a list set by regulation (decree 2-17-743), as well as service outsourcing / offshoring companies, whether or not they are located in a dedicated platform.
- Hospitality: the exemption applies only to the share of turnover earned in foreign currency actually repatriated. It runs from the fiscal year of the first foreign-currency accommodation operation, and lapses (with penalties, articles 186 and 208) if the declaratory statement is not filed.
- ZAI (former free zones): the exemption does not apply to construction/assembly sites, credit institutions, or insurance and reinsurance companies.
After the 5 years, these companies move to the reduced 20% rate — see our corporate tax rate calculator and the detail of how corporate tax is computed in Morocco.
Legal form makes no difference
This is the most misunderstood point: the exemption follows the activity, not the company’s form. Whether you choose an SARL, an SA, an SAS — or even the branch of a foreign company — the right to the exemption is identical as long as the activity falls under one of the article 6 regimes.
So the real question is not “which legal form to be exempt?” but “is my activity eligible, and under what conditions?”. Once that eligibility is confirmed, the next step is to set up your company in Morocco, choosing the structure best suited to your project — the favorable tax treatment will be the same either way.
Corporate tax relief for stock-market listing
On top of the exemptions, a company that lists on the stock exchange enjoys a corporate tax reduction for 3 years: 25% for a capital opening ≥ 20%, and 50% for a capital increase ≥ 20% with waiver of the preferential subscription right.
Read also
- Setting up a company in Morocco: complete 2026 guide
- Corporate tax in Morocco: rates and calculation
- Service outsourcing in Morocco: tax regime
