In brief: Professional income in Morocco is subject to income tax (IR) under three regimes: Net Real Profit (RNR), Simplified Net Profit (RNS) and the Single Professional Contribution (CPU). The choice of regime depends on the turnover and the nature of the business activity. The RNR applies by default above MAD 2,000,000 (commercial activities) or MAD 500,000 (service activities), while the CPU targets very small businesses with a capped turnover. Each regime entails specific accounting and filing obligations (Art. 30 to 41 of the Tax Code).
What qualifies as professional income?
Article 30 of the Tax Code defines professional income as income derived from activities of a:
- Commercial nature: buying and reselling goods, trading, import-export
- Industrial nature: processing raw materials, manufacturing
- Artisanal nature: manual or semi-industrial production
- Liberal nature: regulated professions (lawyers, doctors, architects, chartered accountants) or unregulated professions (consultants, trainers)
Professional income also includes recurring income that does not fall within any other income category, as well as the gross proceeds received by non-residents referred to in Article 15 (Art. 30-2° and 3°). Agricultural income, by contrast, forms a separate category (Art. 22-2° and 46 et seq.). For partnerships not subject to corporate tax (IS) (SNC, SCS, joint ventures), profit must be determined under the RNR (Art. 32-II-1°), and drawings by their managing members are not deductible as personnel costs (Art. 35).
A taxpayer who carries out a business activity as a sole proprietor is subject to income tax under the professional income category. The tax regime determines how the taxable profit is calculated.
Net Real Profit Regime (RNR) — Art. 33 to 37
Scope of application
The RNR is the default regime. It applies mandatorily to taxpayers whose annual turnover exceeds:
- MAD 2,000,000 for commercial, industrial and artisanal activities
- MAD 500,000 for service activities and liberal professions
Below these thresholds, the RNR also applies unless the taxpayer opts for the RNS, the CPU or the auto-entrepreneur regime (Art. 32-I).
Determination of the tax result
The taxable profit is determined according to accounting rules, adjusted by tax adjustments:
Tax result = Accounting result + Add-backs − Deductions
Taxable income includes turnover, ancillary income, financial income, grants received and capital gains on asset disposals.
Deductible expenses include purchases consumed, personnel costs, rent, depreciation, provisions set aside and interest on business loans, subject to the deductibility conditions set out in the Tax Code.
Loss carryforward
In accordance with Article 37, the deficit of a fiscal year may be carried forward and offset against the profits of the following 4 fiscal years. However, the portion of the deficit corresponding to depreciation may be carried forward without time limit. This distinction is essential for businesses in an investment phase.
Accounting obligations
A taxpayer subject to the RNR must maintain full accounts in compliance with the General Chart of Accounts (CGNC): journal, general ledger, trial balance, inventory and financial statements (balance sheet, income statement, statement of changes in equity, cash flow statement).
Simplified Net Profit Regime (RNS) — Art. 38-39
Eligibility conditions
The RNS is an intermediate regime intended for taxpayers whose annual turnover does not exceed:
| Nature of activity | Maximum turnover threshold |
|---|---|
| Commerce, industry, crafts | MAD 2,000,000 |
| Service activities, liberal professions | MAD 500,000 |
The option for the RNS is made in writing to the tax inspector: when starting a business, before May 1 of the year following the year in which the business started (the option then applies to the start-up year); for an existing business, within the deadline for filing the global income return for the previous year, i.e. before May 1 (Art. 44-I and 82-I). A taxpayer under the RNR may opt for the RNS only if their turnover has remained below the threshold for three consecutive fiscal years (Art. 43-3°). The accounting period must coincide with the calendar year (January 1 to December 31).
Calculation method
The simplified net profit is the excess of income over the expenses of the fiscal year incurred or borne for the purposes of the business, in accordance with accounting legislation, adjusted on the statement reconciling the accounting result with the tax result, excluding provisions and loss carryforwards (Art. 38-II). Inventory and work in progress are valued as under the RNR.
Accounting obligations
The taxpayer maintains simplified accounts comprising a receipts and expenditure journal, a register of fixed assets and depreciation, and supporting documents.
Single Professional Contribution (CPU) — Art. 40-41
Principle and background
The CPU replaced the former flat-rate profit regime from the 2021 Finance Act. It targets very small businesses with low turnover. Note that the CPU is distinct from the auto-entrepreneur regime, which has its own legal and tax framework.
Eligibility conditions
The CPU is available, on option, to individuals whose annual turnover does not exceed MAD 2,000,000 (commercial, industrial and artisanal activities) or MAD 500,000 (service providers), provided they are enrolled in the basic compulsory health insurance scheme (AMO) (Art. 41-II). Professions, activities or services set by regulation are excluded (Art. 41-III); this list covers in particular the liberal professions.
Tax calculation
The tax under the CPU comprises two components:
- Professional IR: annual turnover x coefficient set by activity = flat-rate profit, subject to a 10% rate
- Supplementary duty: intended to cover social and medical insurance contributions
The coefficients vary by type of activity (from 3% for a tobacco retailer to 45% for a broker, 20% for “other services”) and are set by the table in Article 40-I of the Tax Code. Where turnover from services provided to a single client exceeds MAD 80,000 in the year, the excess is subject to a final 30% withholding tax deducted by that client (Art. 40-I and 73-II-G-8°). Capital gains on the disposal of business assets (excluding land and buildings) and compensation for ceasing the activity or transferring the clientele are taxed at 20% (Art. 40-II and 73-II-F-11°). Filing is done through the SIMPL portal.
Advantages and limitations
The CPU offers great administrative simplicity: no formal accounting, a single filing and a one-off payment. However, it does not allow the deduction of actual expenses, which may be disadvantageous for taxpayers whose expenses are high relative to their turnover.
Comparative table of the three regimes
| Criterion | RNR | RNS | CPU |
|---|---|---|---|
| Commercial turnover threshold | > MAD 2,000,000 | ≤ MAD 2,000,000 | ≤ MAD 2,000,000 |
| Services turnover threshold | > MAD 500,000 | ≤ MAD 500,000 | ≤ MAD 500,000 |
| Tax base | Adjusted accounting result | Simplified result | Turnover x coefficient |
| IR rate | Progressive scale (0-37%) | Progressive scale (0-37%) | 10% (final withholding) |
| Accounting | Full (CGNC) | Simplified | No formal requirement |
| Loss carryforward | 4 years (depreciation unlimited) | No (excluded, Art. 38-II) | Not applicable |
| Fiscal year | Calendar year (closing on 31/12) | Calendar year | Calendar year |
| Filing | Annual + e-filing | Annual + e-filing | Single CPU filing |
Switching from one regime to another is possible under certain conditions. For example, exceeding the RNS thresholds for two consecutive fiscal years triggers an automatic switch to the RNR.
Common filing obligations
Depending on the regime, the professional taxpayer must:
- File an annual return of global income before May 1 of the following year (RNR and RNS, Art. 82-I); under the CPU, the annual turnover return is filed, together with payment, before April 1 (Art. 82 quater-I), with quarterly payment also available on option (Art. 173-I)
- Pay the minimum contribution before February 1 (RNR and RNS, Art. 144-I and 173-I): 0.25% of the base (4% for the liberal professions referred to in Articles 89-I-12° and 91-VI-1°), with a minimum of MAD 1,500, after an exemption for the first three fiscal years. Income tax on professional income does not give rise to provisional instalments, except for lawyers (Art. 173-III)
- File and pay the withholding tax on salaries paid to employees
- Use the SIMPL portal for e-filing and e-payment
Reference texts: General Tax Code 2026 — Art. 30 to 41 (professional income) — Circular Note No. 717
Frequently asked questions
Can I opt for the RNR even if my turnover is below the thresholds?
Yes. The RNR is the default regime: it applies to any taxpayer who has not opted for the RNS, the CPU or the auto-entrepreneur regime, regardless of turnover (Art. 32-I). Actual expenses are deductible under both the RNR and the RNS; the RNR additionally allows the deduction of provisions and the carryforward of losses, both excluded under the RNS (Art. 38-II). The CPU, for its part, taxes turnover multiplied by a coefficient on a flat-rate basis, with no deduction of actual expenses.
What is the difference between the CPU and auto-entrepreneur status?
The CPU is a tax regime applicable to individuals carrying out a professional activity with low turnover. The auto-entrepreneur status is a distinct legal framework, governed by Law 114-13, with its own turnover ceilings, tax rates and obligations. An auto-entrepreneur does not fall under the CPU but under a specific regime with a final withholding rate on turnover.
How does the switch from RNS to RNR work?
The switch from RNS to RNR occurs when the taxpayer exceeds the applicable turnover thresholds for two consecutive fiscal years. This switch is automatic and takes effect on January 1 of the fiscal year following the second year of exceeding the threshold. The taxpayer must then maintain full accounts in compliance with the CGNC.
Can professional income be combined with other income for IR purposes?
Yes. Moroccan IR is a global tax: professional income is added to salary income, rental income, investment income and agricultural income to determine the total taxable income subject to the progressive scale. However, income subject to a final withholding rate (CPU, certain rental or investment income) is not included in global income.
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