Corporate income tax
IS deeply reformed since 2023 with progressive convergence toward unified 20% rate for most companies by 2026, while introducing 34% enhanced rate for large companies and 17.5% reduced rate for SMEs.
Who is concerned
Any Moroccan commercial company (SA, SARL, SAS), foreign branch, permanent establishment. Non-incorporated liberal professions taxed under IR.
Deadlines
Annual fiscal result declaration within 3 months after fiscal year closing. Quarterly provisional installments (25% each) based on previous year's result.
How it works
Taxable base is accounting result adjusted for non-deductible expenses and non-taxable income. Company applies progressive scale based on result. Quarterly installments calculated based on last IS paid.
2026 rates and scales
2026 scale: Result ≤ 300,000 MAD: 17.5% · 300,001 to 1,000,000 MAD: 20% · 1,000,001 to 100,000,000 MAD: 22.5% · Over 100M MAD: 34% (financial, oil sectors). Reduced rates: 10% for free zones 5 years, 0% Casablanca Finance City (conditions).
Concrete example
Services SARL with fiscal result 750,000 MAD. IS = 300,000 × 17.5% + 450,000 × 20% = 52,500 + 90,000 = 142,500 MAD. 2027 quarterly installments = 142,500 / 4 = 35,625 MAD.
Exemptions
Exemptions: 5 years for free zone companies, agriculture (income < 5M MAD), public utility associations. Minimum contribution of 0.25% of turnover (floor 3,000 MAD) due even in case of deficit in first 3 fiscal years.
Declarative obligations
Keep accounting compliant with CGNC, file certified financial statements, annual IS declaration, monthly/quarterly VAT declaration, withholdings on fees. Electronic filing mandatory via SIMPL-Déclarations.
Penalties for non-compliance
15% surcharge for late declaration, 20% for incorrect declaration, up to 100% for fraud. Late interest 5% first year then 0.5% per month. Tax adjustment prescription 4 years (10 years for fraud).
Legal optimization tips
- Domicile company in Casablanca Finance City if activity is international (0% rate on export profits)
- Provision for doubtful receivables rather than writing off as dry losses
- Use degressive amortization for productive investments to anticipate tax burden
- Negotiate advance tax ruling for complex operations (restructuring, transfer)
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