Morocco

In general, the Moroccan Tax Code considers that all revenues and capital gains generated in Morocco are subject to Moroccan taxation.

Companies are taxed on the difference between their trading income and expenditure. Business expenses incurred in the operation of the business are generally deductible unless specifically excluded.

The CIT rates applicable for FY 2024 are as follows:

Special and industry-specific CIT rates

For companies carrying out industrial activities, the CIT rates applicable for FY 2024 are as follows:

The rate of 20% is applicable to:

• Companies with controlled foreign company (CFC) status.
• Companies operating in Industrial Acceleration Zones (ZAIs).
• Companies created as of 1 January 2023 that commit to the framework of an agreement signed with the state to invest MAD 1.5 billion in tangible assets and maintain it for ten years (with the exception of public establishments and companies and their subsidiaries).

For credit institutions and similar organisations, Bank Al Maghrib, CDG, and insurance and reinsurance companies, the CIT rate will progressively evolve, from 2023 to 2026, to reach 40% in 2026.

Minimum contribution

CIT cannot be lower than a minimum contribution of 0.25% of turnover and other specific revenues for all companies, regardless of the reported current result, and 0.15% for operations carried out by commercial companies for sales of petroleum products, gas, butter, oil, sugar, flour, water, electricity, and medicines.

These measures are applicable for fiscal years beginning on or after 1 January 2023.

The minimum contribution is not due during the first 36 months following the beginning of activities.

Local income taxes

There are no provincial or local taxes levied on income in Morocco.