Key takeaways: Between 2020 and 2026, seven successive Finance Laws (NC 730 to NC 737) profoundly reshaped the Moroccan tax system. Proportional corporate income tax (CIT), extension of the SSC (2026-2028), VAT harmonization, revision of the income tax scale, bookkeeping in electronic format: each year brought its share of structural reforms. This article traces, year by year, the major developments to provide business leaders and chartered accountants with a consolidated overview of the path traveled.
Why Understanding the Tax Reform Timeline Matters
Since 2020, Morocco has undertaken a deep overhaul of its tax system, in application of Framework Law No. 69-19 adopted in 2021. The 2019 National Tax Conference set the course: broadening the tax base, simplifying rates, ensuring tax neutrality for restructuring operations, and digitalizing filing obligations.
Each Finance Law (FL) constitutes a building block of this transformation. Understanding their sequence is essential to anticipate upcoming obligations and optimize your company’s tax strategy.
Summary Table of 2020-2026 Reforms
| Year | Circular Note | Key Measures |
|---|---|---|
| 2020 | NC 730 | CIT convergence initiated, minimum contribution lowered to 0.50% (the 0.75% rate dated from FL 2019) |
| 2021 | NC 731 | SSC reintroduced, tax neutrality for restructurings (Art. 247-XXVIII) |
| 2022 | NC 732 | Elimination of progressive CIT, fiscal group concept |
| 2023 | NC 733 | Major reform: Proportional CIT 20%/35%/40%, 2023-2026 transition, minimum contribution 0.25% |
| 2024 | NC 735 | VAT harmonization (10% / 20%) and VAT withholding at source, registration fee exemption for company formation |
| 2025 | NC 736 | Revised income tax scale (exempt bracket MAD 40,000, top marginal rate 37%), dividend withholding tax set by year of distribution, monthly CNSS |
| 2026 | NC 737 | Target CIT rates reached, SSC extended 2026-2028, bookkeeping in electronic format (Art. 145-I) |
2020 — NC 730: The Starting Point of Convergence
The 2020 Finance Law marked the beginning of the progressive convergence of CIT toward a proportional system. The multiple rates applied according to profit brackets began to be rationalized.
Minimum Contribution Lowered to 0.50%
The increase of the minimum contribution to 0.75% of turnover dated from FL 2019; the 2020 Finance Law instead lowered it to 0.50% for profitable companies, beginning to ease the burden on profitable businesses while preserving CIT revenue.
2021 — NC 731: Consolidation and Restructuring Neutrality
The 2021 Finance Law extended the 2020 guidelines without major upheaval.
SSC Reintroduced
The Social Solidarity Contribution was introduced by FL 2021, for the year 2021 only, on company profits (net profit equal to or above 1 million dirhams) and on individuals’ income (professional, agricultural, salary and property income, at a rate of 1.5% where total income net of tax reached 240,000 dirhams). Presented as temporary, it was reinstated for 2022, with salary and property income now excluded, and then extended by successive finance laws.
Tax Neutrality for Restructurings (Art. 247-XXVIII)
Merger, demerger, and partial asset contribution operations benefited from a reinforced tax neutrality regime. Capital gains recorded during these operations can be neutralized under certain conditions, encouraging companies to restructure without immediate tax cost.
2022 — NC 732: Elimination of Progressivity and Fiscal Groups
Abandonment of the Progressive CIT Scale
The 2022 Finance Law eliminated the progressive scale system for CIT in favor of a single proportional rate applicable to the entire profit. This measure considerably simplified the tax calculation for businesses.
Introduction of the Fiscal Group Concept
The legislator laid the foundations for group taxation, allowing holding companies and subsidiaries to consolidate certain aspects of their taxation. Although limited in its first version, this concept paved the way for legitimate tax optimization within Moroccan corporate groups.
2023 — NC 733: The Major Reform
The year 2023 marks the decisive turning point of the Moroccan fiscal decade. The 2023 Finance Law implemented the most structuring recommendations of Framework Law No. 69-19.
Proportional CIT: 20%, 35%, and 40%
The proportional system was established with three rates:
- 20%: standard rate for companies whose net taxable profit does not exceed 100 million dirhams
- 35%: for companies whose profit exceeds 100 million dirhams
- 40%: reserved for credit institutions, Bank Al-Maghrib, CDG, and insurance companies
A 2023-2026 transition period was planned to progressively reach these target rates.
Minimum Contribution Lowered to 0.25%
For profitable companies, the minimum contribution was reduced to 0.25%, a strong signal to ease the tax burden on profitable businesses and encourage accounting transparency.
Preparing the VAT Reform
It was the 2024 Finance Law (NC 735) that engaged VAT harmonization around two rates (10% and 20%), abolishing the 7% and 14% rates under a transitional calendar set by the 2024 Finance Law itself (Article 247-XXXXI of the CGI) and completed on 1 January 2026. The objective: eliminate unjustified exemptions, reduce the VAT credit backlog and broaden the tax base (digital services supplied by non-residents, VAT withholding at source).
Income Tax: Professional Expenses
The 2023 Finance Law did not change the income tax scale. It reformed the flat-rate deduction for employees’ professional expenses: 35% where gross annual taxable income does not exceed MAD 78,000, 25% above that, capped at MAD 35,000 per year. The revision of the scale itself (exempt bracket raised from MAD 30,000 to MAD 40,000, top marginal rate lowered from 38% to 37%) came with the 2025 Finance Law.
2024 — NC 735: Dividends and Registration Fees
Withholding Tax on Dividends: 2023 Finance Law Trajectory, Simplified by the 2025 Finance Law
The downward trajectory of withholding tax on dividends was set by the 2023 Finance Law: 13.75% for profits of fiscal years beginning on or after 1 January 2023, 12.5% for those beginning on or after 1 January 2024, earlier profits remaining subject to 15% and distributions being deemed made out of the oldest fiscal years first. The 2025 Finance Law simplified this mechanism: for amounts distributed from 1 January 2025, the rate depends solely on the year of distribution, regardless of the fiscal year in which the profits originated, i.e. 12.5% in 2025, 11.25% in 2026 and 10% from 2027.
Registration Fee Exemption for Company Formation
A flagship measure for business creators: company formation deeds are now exempt from registration fees. This exemption significantly reduces creation costs and strengthens Morocco’s attractiveness for entrepreneurship.
2025 — NC 736: Digitalization and Monthly CNSS
Electronic Invoicing: an Earlier Legal Framework (2018 Finance Law)
The obligation to use a computerized invoicing system stems from Article 145-IX of the CGI, introduced by the 2018 Finance Law. It applies to companies subject to corporate income tax, individuals subject to income tax under the actual or simplified net income regime, and VAT-registered taxpayers, excluding taxpayers under the single professional contribution (CPU) or auto-entrepreneur regime. Its implementing rules (technical standards, sector-by-sector calendar) are left to regulations. No implementing text has been published to date. See our guide to electronic invoicing in Morocco.
CNSS: Switch to Monthly Filing
A major change for payroll management: CNSS filing shifted from a quarterly to monthly basis starting in 2025. This measure directly impacts the work of chartered accountants who must adapt their payroll and filing processes.
2026 — NC 737: Culmination of Reforms
The 2026 Finance Law marks the culmination of the trajectory initiated in 2023.
Target CIT Rates Reached
The transition rates are complete: the 20% rate fully applies to standard companies and the 35% rate to large enterprises. The system is now stabilized.
Extension of the SSC (2026-2028)
The Social Solidarity Contribution is extended for fiscal years 2026 to 2028 by the 2026 Finance Law. It remains due by companies whose net profit is equal to or above 1 million dirhams and by individuals under the actual net income regime whose professional or agricultural income net of tax reaches the same threshold, under a proportional scale: 1.5% (1 to 5M), 2.5% (5 to 10M), 3.5% (10 to 40M) and 5% (40M and above). The taxpayers concerned must therefore continue to calculate and declare it.
Electronic Invoicing: Implementing Texts Still Awaited
Article 145-IX of the CGI requires companies subject to corporate income tax, individuals subject to income tax under the actual or simplified net income regime and VAT-registered taxpayers to use a computerized invoicing system meeting the technical criteria set by the tax authorities. Its implementing rules are left to regulations: to date, no implementing text has been published, so no official threshold or calendar has been set. The 2026 Finance Law has also required bookkeeping to be kept in electronic format (Article 145-I).
Frequently Asked Questions
What is the difference between NC 730 and NC 733?
NC 730 (2020) initiated CIT convergence without fundamentally altering its structure. NC 733 (2023) carried out the major reform by establishing proportional CIT at three rates (20%, 35%, 40%) and launching a four-year transition. It is truly NC 733 that redesigned the Moroccan tax landscape.
Is the SSC abolished in 2026?
No. The 2026 Finance Law (NC 737) actually extends the Social Solidarity Contribution for fiscal years 2026 to 2028. Companies whose net profit reaches or exceeds 1 million dirhams, as well as individuals under the actual net income regime whose professional or agricultural income net of tax reaches that threshold, remain liable for this levy, calculated under a proportional scale ranging from 1.5% to 5%. Declarations remain subject to the rules in force at the closing of each fiscal year.
