Morocco

Corporate - Significant developments

Last reviewed - 06 September 2019

Amended corporate income tax (CIT) rate

Finance Bill 2019 reduced the CIT rate applicable to the intermediate taxable income ranging from 300,001 Moroccan dirhams (MAD) to MAD 1,000,000. Consequently, the Moroccan CIT is levied at the following updated rates, using a progressive rate scale:

Taxable income (MAD*) CIT rate (%)
From To
0 300,000 10
300,001 1,000,000 17.5
1,000,001 and above 31

Credit institutions and insurance companies remain subject to a flat CIT rate of 37%.

Increase of the standard rate of minimum contribution

The standard rate of minimum CIT (minimum contribution) has been increased from 0.5% to 0.75%. Such contribution applies to turnover and other specific revenues.

Introduction of a social cohesion contribution

The 'social cohesion contribution' is levied on companies for which the taxable net income exceeds MAD 40 million. This contribution applies to companies subject to CIT for the fiscal years 2019 and 2020. 

The applicable rate for the social cohesion contribution is 2.5%.

Termination of the status of 'coordination centres'

Prior to 1 January 2019, the Moroccan Tax Code included a derogatory regime for coordination centres of non-resident entities where taxable income of such entities was equivalent to 10% of incurred costs in addition to non-current revenues.

Finance Bill 2019 terminated this regime starting from 1 January 2019.