Corporate Tax Base Determination Morocco 2026 — PDF Guide | Upsilon Consulting

Corporate Tax Base Determination in Morocco — 2026 Practical Guide

This 21-page guide, prepared by Salaheddine Yatim (Chartered Accountant, Managing Partner at Upsilon Consulting), details the mechanism for converting accounting profit into taxable income for corporate tax (IS) purposes in Morocco.

The document covers Articles 8 to 12 and 145 of the General Tax Code and is based on Circular Note No. 717 (Volume 1).

Contents

• Principle of taxable income determination (Art. 8 CGI): definition of the excess of revenue over expenses
• Taxable revenue: operating income, financial income, non-recurring income, subsidies and indemnities
• Deductible expenses (Art. 10): general conditions for deductibility, operating expenses, financial charges, depreciation and provisions
• Non-deductible expenses: fines, penalties, cash payments exceeding MAD 5,000/day, corporate tax itself
• Fiscal add-backs: excess vehicle depreciation (MAD 400,000 TTC cap since 2025 Finance Law), unjustified expenses, non-operational debt waivers
• Extra-accounting deductions: capital gains abatement, dividends (100% under conditions), provisions no longer required
• Tax loss carryforward: 4 fiscal years for charges, unlimited for depreciation
• Accounting obligations (Art. 145): balance sheet, income statement, cash flow statement, supplementary information

Who is concerned?

All companies subject to corporate tax in Morocco: LLC, SA, SAS, general partnerships that have opted in, branches of foreign companies, permanent establishments.

Calculation formula

Taxable income = Accounting profit + Add-backs − Deductions

Taxable income is the tax base to which the applicable corporate tax rates (20%, 35% or 40%) are applied.

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See also our corporate tax rates and exemptions guide 2026 and our article on deductible expenses.

Need help determining your taxable income? Our tax advisory team helps you secure your add-backs and deductions. Contact us.