Corporate income tax
The convergence path opened by the 2023 Finance Act ended in 2026. Since then corporate tax no longer has a scale by profit bracket: 20% for companies with net profit below 100,000,000 MAD, 35% from that threshold, and 40% for credit institutions and similar bodies.
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. The company applies the rate matching its net profit. Quarterly installments calculated based on last IS paid.
2026 rates and scales
Rates in force since 2026 (tax code art. 19-I, end of the path opened by the 2023 Finance Act): 20% for companies with net profit below 100,000,000 MAD, 35% from that threshold, and 40% for credit institutions and similar bodies, Bank Al-Maghrib, the Caisse de dépôt et de gestion and insurance and reinsurance companies.
And in 2027?
These amounts stay in force until the 2027 Finance Act is published in the Official Bulletin. The bill is tabled in Parliament by October 20, 2026 at the latest.
Follow the 2027 Finance ActConcrete example
Services SARL with a net profit of 750,000 MAD. As the profit is below 100,000,000 MAD, the rate is 20%: tax = 750,000 × 20% = 150,000 MAD. Each provisional installment for the following year equals 25% of that amount, i.e. 37,500 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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