Application of the proportional rate of corporate income tax (CIT)
The 2022 Finance Act has restored the proportional rates of CIT. Those rates are applicable for fiscal years beginning on or after 1 January 2022.
The instalments due for the year 2022 will be calculated according to the proportional rates below:
|Net profit (MAD*)||CIT rate (%)|
|Less than or equal to 300,000||10|
|From 300,001 to 1 million||20|
|More than 1 million||31|
* Moroccan dirham
The 2022 Finance Act reduced the marginal tax rate for industrial activities with a net profit corresponding to local turnover of less than MAD 100 million from 28% to 26%. The 26% rate is applicable for fiscal years beginning on or after 1 January 2022.
Social solidarity contribution (SSC)
The 2022 Finance Act extended the application of the SSC on the profits of companies according to the real net income regime for the year 2022. It concerns:
- Companies, excluding companies permanently exempt.
- Individuals earning professional income.
- Individuals earning taxable agricultural income.
- Individuals earning salary income.
- Individuals earning rental income.
SSC calculation method and applicable rates for companies
For companies, the SSC is calculated on the net taxable profit of the previous fiscal year, exceeding MAD 1 million, according to the following proportional rates:
|Net taxable income (MAD)||SSC rate (%)|
|Between 1 million and 5 million||1.5|
|Between 5 million and 10 million||2.5|
|Between 10 million and 40 million||3.5|
|More than 40 million||5.0|
For companies, excluding those that are permanently exempted from CIT, the contribution is levied on the amount of net profit used to calculate CIT that is equal to or greater than MAD 1 million for the last fiscal year.
Companies subject to SSC must submit a declaration, by electronic means, according to a model established by the administration within three months following the closing date of the last accounting period. They must pay the amount of the contribution at the same time as the declaration referred to above.
The 2022 Finance Law has reduced the minimum contribution rate from 0.5% to 0.4% for companies reporting positive current income, excluding depreciation. This measure is applicable for fiscal years beginning on or after 1 January 2022.
The 2022 Finance Act instituted, for fiscal years beginning from 2022, a 70% reduction on the net capital gain from the sale of property, excluding land and buildings, held for more than eight years. The proceeds from the sale, net of tax, must be reinvested within 36 months from the end of the fiscal year, and the assets acquired must be held for at least five years from the date of their acquisition.