1. 1. Morocco IS 2026: The 4 Tax Brackets
| Revenue (excl. VAT) | IS Rate 2026 | Company Type |
|---|---|---|
| < 100,000 MAD | 17.5% | Micro-business |
| 100,001 to 1,000,000 MAD | 27% | Small business |
| 1,000,001 to 5,000,000 MAD | 32% | SME |
| > 5,000,000 MAD | 37% | Large enterprise |
Since the gradual 2023-2026 reform, Morocco's Corporate Income Tax applies a progressive 4-bracket scale based on revenue (not profit). The rate applies to the fiscal year's taxable profit. The 2026 Finance Law confirmed these rates remain unchanged for the current year.
Watch the Revenue Threshold
The rate is determined by revenue excluding VAT, not by profit. A company with 6M MAD revenue and 200k MAD profit will pay 37% on the 200k, or 74,000 MAD in IS.
2. 2. The 4 Quarterly Installments: Principle
- Installment 1 (Q1): before March 31
- Installment 2 (Q2): before June 30
- Installment 3 (Q3): before September 30
- Installment 4 (Q4): before December 31
- Annual balance: before March 31 of year N+1
Morocco's General Tax Code (Article 170) requires IS payment via 4 provisional quarterly installments. Each installment represents 25% of the IS amount due for the prior fiscal year. Any balance is settled when filing the annual return, before March 31 of the following year.
3. 3. Calculating the Installment: 25% of Prior Year IS
Each installment's calculation base is the IS actually owed for the prior fiscal year (N-1). The 25% per quarter rule is then applied. If the N-1 fiscal year generated 800,000 MAD in IS, each 2026 quarterly installment will be 200,000 MAD. For newly created companies without a closed N-1 fiscal year, no installment is due the first year: only the balance will be settled in N+1.
Case of N-1 Loss-Making Companies
If the prior fiscal year was in loss, no installment is due for year N. However, the company must still file its annual return and pay the minimum contribution (CM) of 0.25% to 0.5% of revenue depending on activity.
Minimum Contribution (CM)
The CM is due even in case of loss. It represents the fiscal floor and amounts to 0.25% of revenue for startup companies (first 3 fiscal years) and 0.5% beyond. It can be offset against IS for the following 3 years.
4. 4. Precise 2026 Calendar: Deadlines
| Deadline | 2026 Due Date | Amount | Late Penalty |
|---|---|---|---|
| Q1 Installment | March 31, 2026 | 25% of 2025 IS | 5% + 0.5%/month |
| Q2 Installment | June 30, 2026 | 25% of 2025 IS | 5% + 0.5%/month |
| Q3 Installment | September 30, 2026 | 25% of 2025 IS | 5% + 0.5%/month |
| Q4 Installment | December 31, 2026 | 25% of 2025 IS | 5% + 0.5%/month |
| 2026 IS Return + Balance | March 31, 2027 | Balance after installments | 5% + 0.5%/month |
Here is the complete schedule of IS deadlines for fiscal year 2026, with particular attention to the Q3 installment whose deadline is September 30, 2026. In case of weekend or public holiday, the date is postponed to the next business day.
Q3 2026 Installment: Plan Ahead
The September 30, 2026 installment is often forgotten due to back-to-school season. Schedule the wire transfer in mid-September via SIMPL-IS on the DGI portal to avoid automatic penalties.
5. 5. Late Penalties: 5% + 0.5% per Month
- Initial surcharge: 5% of unpaid amount
- Late interest: 0.5%/month or fraction of month
- Accumulation: applied until effective payment
- Additional sanction: fixed fine of 500 MAD for non-filing
- Appeal: gracious remission possible if documented force majeure
Any late payment of an IS installment automatically triggers a 5% surcharge on the amount owed, plus 0.5% per month or fraction of additional month of delay. This penalty is calculated by DGI during audit or final liquidation. A 6-month delay on a 200,000 MAD installment thus costs 16,000 MAD in penalties (5% + 3% = 8% × 200k).
6. 6. CFC Regime: 5-Year Exemption then 8.75%
Companies benefiting from Casablanca Finance City (CFC) status enjoy a particularly attractive derogatory tax regime. During the first 5 fiscal years following status grant, they are totally exempt from IS (0% rate). Beyond that, the rate becomes 8.75% for life on export profits, compared to 17.5% to 37% under the normal regime.
CFC Eligibility Conditions
- International vocation company (export, finance, holding)
- Effective establishment in the CFC zone in Casablanca
- Minimum staff and qualified payroll
- Approval issued by CFC Authority
- Annual activity reporting
Impact on Installments
A CFC company in the exemption phase (0%) pays no IS installment for 5 years. After this period, installments are calculated based on the 8.75% rate applied to N-1 IS, representing a major competitive advantage over the common-law regime.
7. 7. Concrete Case: SME with 8M MAD Revenue
| Item | Amount | Calculation |
|---|---|---|
| 2025 Revenue (excl. VAT) | 8,000,000 MAD | Bracket > 5M MAD |
| Applicable IS Rate | 37% | 2026 scale |
| 2025 Taxable Profit | 8,000,000 MAD | After deductible expenses |
| 2025 IS Due | 2,960,000 MAD | 8,000,000 × 37% |
| 2026 Quarterly Installment | 740,000 MAD | 2,960,000 ÷ 4 |
| Q3 2026 Installment (Sept 30) | 740,000 MAD | Due before 09/30/2026 |
| 1-Month Late Penalty | 40,700 MAD | 5% + 0.5% × 740k |
Let's take the example of a Moroccan services-sector SME with 8,000,000 MAD revenue excluding VAT in 2025. With revenue above 5M MAD, it falls in the highest bracket at 37%. Its 2025 taxable profit is 8,000,000 MAD (simplified assumption; in practice, deductible expenses are subtracted).
Cash Flow: Provision Monthly
For an SME, freezing 740k MAD in cash every quarter is heavy. Provision monthly (≈ 247k MAD/month) in a dedicated account to absorb the shock of IS deadlines.
8. 8. Documents and DGI Filing Procedure
IS installment payment is mandatorily made electronically via the SIMPL-IS portal of the General Tax Directorate (DGI). The company must have an active fiscal account and an electronic certificate. The annual return model 8401 must be filed before March 31 of the following year with complete financial statements.
Required Documents for Annual Return
- Form 8401 (IS return) completed online
- Balance sheet and income statement (CPC) certified
- Depreciation and provisions schedule
- Statement of deductible and non-deductible expenses
- Statement of distributed dividends
- Complete fiscal package (ETIC, ESG, etc.)
SIMPL-IS Payment Procedure
- Login to tax.gov.ma portal with certificate
- Select ADC form (installment)
- Enter 25% of N-1 IS amount
- Validate and obtain electronic receipt
- Pay by wire transfer or direct debit
- Archive the receipt (10-year duration)
9. FAQ
Q.What is the Q3 2026 IS installment deadline in Morocco?
Q.How is the quarterly IS installment amount calculated?
Q.What are the IS rates in Morocco in 2026?
Q.Does a loss-making company have to pay IS installments?
Q.What is the penalty for late payment of the Q3 installment?
Q.Do self-employed entrepreneurs pay IS in Morocco?
Q.What is the CFC regime and what IS advantage does it offer?
Q.How to pay the IS installment online in Morocco?
Q.Does a new company have to pay installments the first year?
Q.When must the annual IS return be filed in Morocco?
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