In brief: A company that lists its shares on the Casablanca Stock Exchange benefits from a corporate tax reduction of 25% (opening of the capital through the sale of existing shares) or 50% (capital increase of at least 20% with waiver of the preferential subscription right), for three consecutive fiscal years starting from the year following admission to listing (Art. 6-III of the CGI). The scheme, codified by the 2017 Finance Act, is still in force in 2026. On the investor side, dividends on listed shares bear a withholding tax of 11.25% in 2026 (10% from 2027) and capital gains are taxed at 15%, with an exemption below MAD 30,000 of annual disposals.
A permanent scheme, often believed repealed
The corporate tax reduction for an IPO has a long history. Introduced on a temporary basis in the early 2000s, it was extended several times under the transitional provisions of the Code (former Article 247-XI), and the last of those deadlines fed the belief that the scheme had lapsed.
The 2017 Finance Act (No. 73-16) ended that uncertainty by codifying the measure permanently in Article 6-III of the CGI, under the heading “Tax reduction for companies whose shares are listed on the stock exchange”. The article appears in the 2026 CGI with no time limit. A company preparing its stock-market listing today can therefore build this reduction into its financing plan, provided it meets the conditions.
The two reduction rates: 25% or 50%
The reduction applies to the corporate tax payable by the listed company for three consecutive fiscal years, and its rate depends on the listing method:
| Listing method | Corporate tax reduction | Duration |
|---|---|---|
| Opening of the capital to the public through the sale of existing shares | 25% | 3 consecutive fiscal years |
| Capital increase of at least 20% with waiver of the preferential subscription right, intended for distribution to the public at the time of the listing | 50% | 3 consecutive fiscal years |
The logic is an incentive: the legislator rewards the injection of fresh money into the company (capital increase) more than a mere sale of shares by historical shareholders. A listing that combines a sale and a capital increase must be structured carefully, as only a capital increase of at least 20%, with waiver of the preferential subscription right, qualifies for the 50% rate.
Timing: three fiscal years starting from the following year
The reduction runs “from the fiscal year following the year of admission to listing”. The year of the listing itself therefore does not qualify.
Example. A company with a 31 December year-end is admitted to listing on 15 June 2026:
- fiscal year 2026: corporate tax at the standard rate, no reduction;
- fiscal years 2027, 2028 and 2029: corporate tax reduced by 25% or 50% depending on the listing method;
- fiscal year 2030: return to the standard rate.
Worked example
An industrial company records a net taxable profit of MAD 30,000,000 for fiscal year 2027, i.e. standard corporate tax of 30,000,000 × 20% = MAD 6,000,000 (profit below MAD 100 M, 20% rate under Art. 19-I).
| Situation | Standard corporate tax | Reduction | Tax due |
|---|---|---|---|
| Listing through the sale of existing shares (25%) | MAD 6,000,000 | MAD 1,500,000 | MAD 4,500,000 |
| Listing through a capital increase ≥ 20% (50%) | MAD 6,000,000 | MAD 3,000,000 | MAD 3,000,000 |
Over three fiscal years with comparable results, the tax saving reaches MAD 4.5 M in the first case and MAD 9 M in the second. Our corporate tax rate calculator includes the “stock exchange listing” option and simulates the tax after reduction.
Two practical points:
- the reduction applies to the corporate tax computed on taxable profit; the tax due after reduction cannot, however, be lower than the minimum contribution, which remains the tax floor (Art. 144-I);
- the reduction does not change the applicable rate: a company whose net taxable profit reaches MAD 100 M remains subject to the 35% rate, the reduction then being applied to the tax so computed.
Companies excluded from the scheme
Article 6-III-1 expressly excludes from the reduction:
- credit institutions;
- insurance and reinsurance companies;
- public-service concession holders;
- companies whose capital is wholly or partly held by the State or a public authority, or by a company at least 50% owned by a public authority.
These exclusions target sectors that are already regulated or backed by public authorities, for which the tax incentive has no economic justification. A bank or an insurance company listing on the exchange therefore receives no corporate tax reduction.
Formal conditions: the listing certificate
To benefit from the reduction, the company must provide the local tax office of its registered office, together with its tax return for taxable profit and turnover, a certificate of admission to listing on the stock exchange. This certificate is issued by the market operator of the Casablanca Stock Exchange, provided for in Article 4 of Law No. 19-14 on the stock exchange, brokerage firms and financial investment advisers (Art. 6-III-2).
The certificate must accompany each of the three annual tax returns concerned. Failing this, the reduction may be challenged during a tax audit.
Forfeiture in the event of delisting within ten years
The legislator attached a listing-maintenance obligation to the benefit. Delisting of the shares before the expiry of a ten-year period running from the date of admission triggers (Art. 6-III-3):
- the forfeiture of the tax reduction;
- payment of the corresponding additional tax, together with the late-payment penalties and surcharges provided for in Article 208 of the CGI;
- and this by derogation from Article 232: the tax authorities may claim the additional tax even after the ordinary limitation period has expired.
The rule has a protective qualification: where the company produces a certificate from the market operator showing that the delisting occurred for reasons not attributable to it, forfeiture only takes effect from the year of delisting. This mechanism avoids the punitive retroactivity of a delisting suffered, for instance, following a merger by absorption or a squeeze-out initiated by a third party.
Listing and the company’s tax regime
The Article 6-III reduction is combined with the ordinary corporate tax regime, but it does not replace other schemes:
- a company exempt from corporate tax under a specific regime of Article 6-II-B (industry, service outsourcing, industrial acceleration zones) has no tax to reduce during its exemption period; the question of combining the two arises when the exemption ends and requires a case-by-case analysis — see our guide to corporate tax exemptions in Morocco;
- the reduction concerns only the corporate tax of the listed company: it extends neither to the withholding taxes it bears nor to the taxation of its shareholders.
Shareholder taxation: dividends and capital gains on listed shares
For the investor, an IPO gives access to securities whose tax treatment is more favourable than that of unlisted securities.
Dividends
Dividends distributed by a listed company to a resident individual bear a final withholding tax of 11.25% for amounts paid in 2026, then 10% from 1 January 2027 (Art. 247-XXXVII-C). The rate is the same for listed and unlisted shares; the advantage of listing lies in the liquidity of the security, not in the rate.
A company subject to corporate tax that receives dividends from a Moroccan company benefits from a 100% allowance on those dividends, provided it evidences its liability to corporate tax.
Capital gains
Gains on the disposal of securities realised by an individual are subject to income tax at 15% for listed shares and 20% for unlisted shares (Art. 73-II). Two exemptions are worth knowing:
- disposals whose total for the year does not exceed MAD 30,000 are exempt (Art. 68);
- gains realised within an equity savings plan (PEA) are exempt subject to holding-period and ceiling conditions.
For a company subject to corporate tax, the gain on the disposal of listed shares is included in taxable profit and taxed at the standard rate, like any other capital gain on disposal.
The other levers of an IPO
Beyond the corporate tax reduction, a listing has structural effects that managers often underestimate:
- a reference valuation of the company, useful for any subsequent sale or opening of the capital;
- easier access to financing, as listing strengthens financial transparency and governance (statutory audit, regulated disclosure, AMMC supervision);
- organised liquidity for historical shareholders and an incentive tool for employees through stock-option and free-share plans.
Going public requires a public limited company (SA), certified accounts and an information document approved by the AMMC. The tax preparation of the transaction, in particular the choice between a sale of shares and a capital increase and the check that no exclusion applies, is best carried out from the structuring phase.
Read also
- Corporate tax exemptions in Morocco 2026: which companies are really exempt?
- Gains on the disposal of securities: income tax, exemptions and filing
- The public limited company (SA) in Morocco: formation, operation and tax regime
