In brief: For corporate tax (IS), a real estate developer’s turnover arises on delivery of the buildings sold, not on signature of the final deed. Article 9-I-A-1° of the CGI 2026 covers vested receivables « relating to products delivered ». The DGI confirmed this on 10 February 2026.
Since 1 January 2025, the new accounting plan for the real estate sector (NPCSI) makes signature of the final notarised deed of sale the sole accounting trigger for turnover, according to the account sent to the DGI by an operator in the sector. Tax law has not followed: corporate tax remains tied to delivery, VAT to collection. This article complements the guide on VAT for real estate developers and subdividers, which covers the scope and base of VAT but not the taxable event.
What the CGI 2026 says: vested receivables and products delivered
Taxable profit starts from the accounts, corrected by tax law. Article 8-I of the CGI provides that taxable profit is determined « in application of the accounting legislation and regulations in force, amended, where applicable, in accordance with the tax legislation and regulations in force ». When an accounting rule departs from the CGI, the CGI sets taxable profit.
Tax turnover is defined by article 9-I-A-1°. It comprises « receipts and vested receivables relating to products delivered, services rendered and building works carried out ». For the sale of a building, the legal criterion is twofold: vested receivable and product delivered. The text mentions neither the notarised deed nor collection.
Undelivered property remains in inventory. Article 9-I-A-2° includes in income « the change in product inventories », and article 8-I, paragraph 2, values inventories and work in progress at cost. A completed but undelivered apartment is therefore carried in inventory at cost, with no margin.
Accounts remain compulsory. Article 145-I requires accounts kept in accordance with the legislation and regulations in force, including in electronic format (Finance Law no. 68-17 for 2018, Finance Law no. 50-25 for 2026). The developer therefore applies its sector’s accounting plan. The CGI does not refer to article 19 of Law no. 9-88 on accounting departures.
For VAT, the taxable event is different. Article 95 uses « full or partial collection of the price ». On option (declaration before 1 January or within 30 days of starting business), it becomes the debit, which « coincides with invoicing or with the recording of the receivable in the accounts ». Real estate development is compulsorily taxable (article 89-I-4°), on the sale price less the land price indexed by the coefficient of article 65-II (article 96-4°).
| Tax | Taxable event | Legal basis |
|---|---|---|
| Corporate tax (IS) | Delivery of the property (vested receivable on a product delivered) | Art. 9-I-A-1° |
| Corporate tax (IS) | Undelivered property: inventory at cost | Art. 9-I-A-2° and 8-I para. 2 |
| VAT (standard regime) | Full or partial collection of the price | Art. 95 |
| VAT (on option) | Debit: invoicing or recording of the receivable | Art. 95 |
| Corporate tax rate 2026 | 20% (35% if net profit ≥ 100,000,000 DH) | Art. 19-I-A and 19-I-B; 247-XXXVII-A-5 |
| Minimum contribution | 0.25%, minimum 3,000 DH even without turnover | Art. 144-I-D |
For companies whose profit is below 100,000,000 DH, article 247-XXXVII-A-5 sets the rate at 20% for the financial year opened from 1 January 2026.
Key points:
- In Morocco, turnover taxable to corporate tax comprises the vested receivables relating to products delivered, under article 9-I-A-1° of the CGI 2026.
- Article 8-I of the CGI 2026 allows tax law to amend accounting profit: a rule of the accounting plan does not by itself set the date of taxation.
- For VAT, a developer’s taxable event is full or partial collection of the price (article 95 of the CGI 2026), unless the debit basis is elected.
- Corporate tax rate 2026: 20% for net profit below 100,000,000 DH (articles 19-I-A and 247-XXXVII-A-5).
What the administration clarifies: delivery, transfer of ownership and collection
Circular note 717 restates the legal criterion. Circular note no. 717 of 2011 (volume 1, p. 90) defines turnover as « receipts and vested receivables relating to products delivered ». It cites article 9-I-1° of the time, now 9-I-A-1°. Its chapter on taxable profit and taxable income (p. 85-114) remains valid.
The year of allocation is the year of delivery. The administration states (volume 1, p. 98-99, « Products delivered ») that « delivery generally corresponds to invoicing and to the debit, and the year to which receivables are allocated is the year in which the goods are delivered ». Property delivered but not invoiced goes to account 34271 « customers – invoices to be issued »; a receipt on an undelivered product goes to account 4491 « deferred income ». Allocation of works and service contracts that span several financial years is covered in multi-year projects: allocating income and expenses to the right year.
Delivery and transfer of ownership are two distinct concepts. The same page of circular note 717 states: « From a legal point of view, delivery is distinct from transfer of ownership, even though the two concepts often merge. » Delivery is the handover that takes place when the seller « relinquishes the thing sold and enables the buyer to take possession of it without hindrance », in accordance with article 499 of the Dahir on Obligations and Contracts (DOC).
Conditional sales have their own rules. Every delivery must give rise to an invoice or an equivalent document (volume 1, p. 91). Under a condition precedent (DOC, art. 601 to 612), the condition « postpones the final conclusion of the sale until the condition is actually fulfilled ». Under a condition subsequent (DOC, art. 121), the sale is deemed made on delivery (volume 1, p. 91-92).
For VAT, every collection is taxable. The developer, whether it builds itself or acts as project owner, is « liable to VAT by law » (volume 2, p. 19). Taxable collection covers « all sums received on any grounds whatsoever », advances and deposits included (p. 85-86). Earnest money forfeited on termination is non-taxable damages.
The accounting plan referred to in circular note 717 is the old one. Circular note 717 (volume 3, p. 191) cites the accounting plan for the real estate sector of opinion no. 3 of 11 March 2003. Circular notes no. 729 to 737 deal neither with the taxable event for developers’ turnover nor with the NPCSI. Circular note 735 (Finance Law 2024, p. 51) states only, for local taxation, that a promise to sell is not a transfer deed.
Key points:
- Circular note 717 of 2011 (volume 1, p. 98-99) allocates receivables to the year in which the goods are delivered.
- Under circular note 717 (volume 1, p. 98), a receipt on an undelivered product is deferred income (account 4491), not turnover.
- Delivery is defined by article 499 of the DOC: relinquishment by the seller and taking of possession by the buyer without hindrance.
- For VAT, advances and deposits collected by a developer are taxable (circular note 717, volume 2, p. 85-86).
Cases decided by the DGI
Ruling of 10 February 2026: delivery prevails over the final deed
The question. By letter of 6 January 2026, an unidentified applicant, writing for several real estate development companies, asked the DGI for guidance. According to its account, since 1 January 2025 the NPCSI makes « signature by the seller and the buyer of the final and notarised deed of sale before an authorised professional » the sole accounting trigger for turnover. Still according to the applicant, turnover was previously recognised on full collection of the price, and the new criterion creates « an uncontrolled gap » between collection and taxation of the margin. The applicant invoked article 19 of Law no. 9-88, which requires a departure from an accounting requirement contrary to the true and fair view.
Two questions were asked: does full collection of the price amount to turnover even without a contract, and is the corresponding margin subject to corporate tax?
The answer. In an individual clarification of 10 February 2026, the DGI relies on articles 8-I and 9-I-A and on the vested receivable principle, « under which turnover is considered realised once the products are delivered ». It concludes: « the taxable event for the sale of real estate is the delivery of the buildings sold, in accordance with the vested receivable principle, regardless of the date of collection of the sale price and of the conclusion of the final deed of sale ».
Proof of delivery. Where delivery precedes the deed, the DGI accepts that the taxable event remains delivery, « evidenced, in particular, by the handover of the keys or plans to the clients together with a preliminary sale agreement and supported by an acceptance report signed by the client ». The words « in particular » make the list non-exhaustive.
What the ruling does not decide. Collection without a contract (no explicit answer), article 19 of Law no. 9-88, the accounting validity of the NPCSI, VAT, and the case where the deed precedes delivery.
Scope. This is an individual ruling, with no number or signatory in the available transcript and no official PDF published. It is indicative only for third parties. Its reasoning remains transposable in 2026 to any developer subject to corporate tax: it applies the text of article 9-I-A-1° and the general doctrine of circular note 717 (volume 1, p. 98-99), still valid.
Ruling no. 52 of 24 January 2000: acceptance of building works
In a ruling of 24 January 2000 (collection of tax questions, IS 2000-2005, p. 25), the DGI accepted that the turnover from building works covers works that have been subject to « partial or full acceptance, whether provisional or final ». This ruling concerns works contractors, not developers’ sales, and cites repealed texts (Laws no. 24-86 and no. 17-89). It serves only as an analogy: acceptance, like delivery, places the property at the client’s disposal.
Ruling no. 166 of 28 March 2011: transfer of ownership in off-plan sales
In a ruling of 28 March 2011, the DGI indicated that in an off-plan sale (VEFA), ownership is transferred only on the date of the final contract. The regime concerned (former article 161-I-B) has been repealed: the ruling is largely obsolete. It only illustrates that transfer of ownership and delivery are two different moments.
Key points:
- In an individual ruling of 10 February 2026, the DGI accepted that delivery of the buildings sold is the taxable event for corporate tax, regardless of collection and of the final deed.
- According to the DGI (10 February 2026), delivery is evidenced in particular by the handover of the keys or plans, a preliminary sale agreement and an acceptance report signed by the client.
- The ruling of 10 February 2026 is individual, with no official PDF published: it is indicative only for third parties.
- Ruling no. 166 of 28 March 2011 places the transfer of ownership in an off-plan sale on the final contract, a moment distinct from delivery.
Application in 2026: worked example
Assumptions (illustrative): a real estate development public limited company subject to corporate tax, single activity, financial year matching the calendar year. Programme of 10 apartments sold for 1,000,000 DH excl. VAT each. Cost (land and construction): 700,000 DH per apartment. Profit below 100,000,000 DH, no other expense or income.
The 10 apartments are delivered in 2026 (N): keys handed over, preliminary sale agreement and acceptance report signed by each client. The final deeds are signed in 2027 (N+1). Collection has no effect on corporate tax (ruling of 10 February 2026).
| 2026 (N) — deliveries | 2027 (N+1) — deeds | |
|---|---|---|
| NPCSI accounting turnover (final deed) | 0 | 10,000,000 |
| Accounting cost of sales | 0 (the 7,000,000 remain in inventory) | 7,000,000 |
| Accounting profit | 0 | 3,000,000 |
| Off-book adjustment | + 3,000,000 (add-back: 10,000,000 − 7,000,000 for the property delivered) | − 3,000,000 (deduction: margin already taxed in N) |
| Tax turnover (Art. 9-I-A-1°) | 10,000,000 | 0 |
| Taxable profit | 3,000,000 | 0 |
| Corporate tax at 20% (Art. 19-I-A; 247-XXXVII-A-5) | 600,000 | 0 |
| Minimum contribution (Art. 144-I-D) | 25,000 (0.25% × 10,000,000) < corporate tax: tax due 600,000 | Base not settled by the texts; minimum 3,000 DH |
Reading. Without adjustment, the company would report nil profit in 2026 and 3,000,000 DH in 2027: the 2026 year would be exposed to a reassessment. In 2027, the off-book deduction neutralises the margin recognised on the deed, which would otherwise be taxed twice. Total corporate tax is identical (600,000 DH): what is at stake is the year of taxation. These adjustments go through the move from accounting profit to taxable profit.
Minimum contribution 2027. No text and no ruling states whether the turnover recognised in 2027, already taxed in 2026, falls within the 2027 minimum contribution base: the point is not settled by the texts. Only the minimum of 3,000 DH, due even without turnover (article 144-I-D), is certain.
Variant. If 6 apartments are delivered in 2026 and 4 in 2027, taxable profit is 1,800,000 DH in 2026 (corporate tax 360,000 DH) and 1,200,000 DH in 2027 (corporate tax 240,000 DH).
VAT. It is due on collection of each advance, deposit or balance (article 95), on the sale price less the indexed land (article 96-4°), whatever the date of delivery or deed, unless the debit basis is elected. See VAT on real estate transactions.
Key points:
- A developer subject to corporate tax that delivers 10 apartments in 2026 and signs the deeds in 2027 is taxed on its margin in 2026 (article 9-I-A-1° of the CGI 2026).
- In the example, the margin of 3,000,000 DH is added back in 2026 (corporate tax of 600,000 DH at 20%) and then deducted in 2027 to avoid double taxation.
- The minimum contribution base for the year of the deed, when the margin was already taxed on delivery, is not settled by the texts; the minimum of 3,000 DH remains due (article 144-I-D).
Points to watch
- Status of the source. The position of 10 February 2026 is an individual ruling, with no known number or official PDF: it is not to be cited as a circular.
- Content of the NPCSI. Only the entry into force on 1 January 2025 and the final deed as the accounting trigger are known, as reported by the applicant.
- Law no. 9-88, article 19. The « true and fair view » departure is invoked by the applicant; the DGI neither validates nor rejects it.
- Delivery and transfer of ownership. Two distinct concepts (circular note 717, volume 1, p. 98; ruling no. 166 of 28 March 2011): corporate tax follows delivery.
- Collection without delivery. For corporate tax, advances on undelivered property are liabilities or deferred income. For VAT, they are taxable on collection (article 95; circular note 717, volume 2, p. 85-86).
- Proof of delivery. Keys or plans handed over, preliminary sale agreement, signed acceptance report: these documents date the year of taxation. Date and keep each acceptance report.
- Condition precedent. It postpones the conclusion of the sale until it is fulfilled (circular note 717, volume 1, p. 91-92); the 2026 ruling does not address this case.
- Deed before delivery, transition years 2024-2025. No DGI position: points not settled by the texts.
- Individual developer. The ruling concerns corporate tax; its transposition to income tax (IR) has not been verified.
- Self-supply. For a residential building kept by the developer, the VAT taxable event is completion of the works, at the latest the issue of the occupancy permit or certificate of compliance (circular note 717, volume 2, p. 87).
Key points:
- The DGI ruling of 10 February 2026 decides neither article 19 of Law no. 9-88, nor VAT, nor the case of a deed signed before delivery.
- In Morocco, an advance collected by a developer on undelivered property is not turnover for corporate tax but is subject to VAT on collection (article 95 of the CGI 2026).
- The acceptance report signed by the client, cited by the DGI on 10 February 2026, serves to date the year of delivery.
Frequently asked questions
What is the taxable event for the tax revenue of a real estate developer in Morocco?
Delivery of the property sold. Article 9-I-A-1° of the CGI 2026 includes in turnover the vested receivables relating to products delivered. In an individual ruling of 10 February 2026, the DGI states that delivery of the buildings sold is the taxable event for corporate tax (IS), « regardless » of the collection date and of the final deed.
Does the NPCSI, which uses the notarised deed, change the date of taxation for corporate tax?
No. Article 8-I of the CGI determines taxable profit from the accounts, « amended, where applicable » by tax law. The gap between the final deed (the NPCSI accounting criterion) and delivery (the tax criterion) is corrected outside the accounts: the margin is added back in the year of delivery and deducted in the year of the deed.
How is the delivery of an apartment proved before the final deed?
In its ruling of 10 February 2026, the DGI cites the handover of the keys or plans, together with a preliminary sale agreement and supported by an acceptance report signed by the client. The list is introduced by « in particular ». Delivery is defined by article 499 of the DOC: effective relinquishment by the seller, taking possession without obstacle.
Are advances collected on off-plan sales taxable?
For corporate tax, no, as long as the property has not been delivered: circular note 717 (volume 1, p. 98) records receipts on undelivered products as deferred income. For VAT, yes: the taxable event is full or partial collection of the price (article 95 of the CGI), advances and deposits included (NC 717, volume 2, p. 85-86).
Does this DGI position apply to all developers?
It is an individual ruling addressed to one operator, without the status of a circular. It nevertheless applies the text of article 9-I-A-1° and the general doctrine of circular note 717 (volume 1, p. 98-99: allocation to the year of delivery), still valid. The reasoning therefore holds for any developer subject to corporate tax.
READ ALSO:
- VAT for Real Estate Developers and Subdividers in Morocco: Complete Guide
- Corporate Tax in Morocco: From Accounting Profit to Taxable Income
- Minimum Contribution (Cotisation Minimale) Corporate Tax 2026: Calculation, Rates & Exemptions
