Morocco

WHT on dividends

The WHT rate applicable to income from shares, units, and similar income is set at 11.25% for FY 2026.

The WHT rate will progressively evolve, from 2023 to 2027, until it reaches 10%.

WHT on remuneration for services rendered by certain legal entities

The 2026 Finance Bill extended the application of WHT for CIT and VAT purposes to remuneration for services rendered by certain taxable legal entities for the benefit of the other legal entities.

The WHT applies where service payments are made by:

• banking institutions and similar entities;
• insurance and reinsurance companies;
• companies whose turnover excluding VAT is equal to or exceeds MAD 200 million, effective as from 1 January 2028.

On a transitional basis, this CIT and VAT WHT will be implemented progressively by companies, based on the turnover excluding VAT on their last closed fiscal year, as follows: 

For VAT purposes, the WHT to be applied to service payments referred to in Article 89‑I (5°, 10° and 12°) is set at:

• 75% for suppliers presenting a tax compliance certificate;
• 100% in the absence of such certificate.

Effective date: Applies to remunerations paid as from 1 July 2026.

WHT on real estate rental income for CIT and PIT purposes

The 2026 Finance Bill extended WHT for both (CIT) and (PIT) to rental income paid to companies subject to CIT and to individuals subject to professional PIT under the Net Real Profit or Simplified Net Profit regimes. This includes rental income from built or unbuilt real estate. 

Rental income paid to persons outside the scope of taxation or benefiting from a permanent exemption is excluded.

The withholding tax applies at a 5% non‑final rate on rental income excluding VAT and is creditable against the final CIT or PIT due, with any excess refundable.

The obligation to withhold applies to public entities, credit institutions, insurance and reinsurance companies, and companies meeting the turnover thresholds set out in the previous section.

Effective date: Applies to rental income paid as from 1 July 2026.

WHT on interests

The standard WHT on interest paid to non-resident entities is set at 10% as provided by the Moroccan law (unless reduced by treaty). However, the Moroccan law provides that interest on loans granted in foreign currency with a maturity exceeding ten years is exempt from WHT.

WHT on services paid to non-resident entities

According to the Moroccan Tax Code, all payments of all kinds of services rendered by non-resident entities are subject to WHT at the rate of 10%.

However, it shall be noted that treaty dispositions limit the scope of application of WHT only to remunerations that constitute royalties. Such dispositions overrule the domestic tax law provided by the Moroccan law.

The 2026 Finance Bill introduced a permanent exemption from WHT on remuneration and similar lease payments relating to the chartering, leasing, and maintenance services of ships used for international maritime transport, where such amounts are paid or credited to non‑resident individuals or legal entities.

Treaty WHT rates

Payments to non-resident corporations and individuals are subject to WHT, as shown below.

Notes

1. Some treaties provide for an exemption for certain types of interest (e.g. interest paid to public bodies and institutions). Such exemptions are not dealt with in this treaty chart.
2. The member states of the Arab Maghreb Union are Algeria, Libya, Mauritania, Morocco, and Tunisia.
3. There is no limitation on WHT under the treaty.
4. The lower rate (i.e. 5%) usually applies to copyright royalties and other similar payments in respect of the production or reproduction of any literary, artistic, or dramatic work (excluding cinematographic and television films), while the 10% rate applies to other types of royalties.
5. The lower rate of 5% applies for the use of, or the right to use, industrial, commercial, or scientific equipment.