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Corporate - Significant developments
Last reviewed - 04 April 2023Revision of the corporate income tax rates
The 2023 finance bill fixed the applicable CIT rates as follows:
- 20% for companies with a net tax income lower than MAD 100 million.
- 35% for companies with a net tax income equal to or higher than MAD 100 million (subject to some exceptions)
Still, the target rates of 20% and 35% rates would not be applicable until January 2026. As such, CIT rates will progressively evolve, from 2023 to 2026, as follows:*
| Fiscal years | 2022 | 2023 | 2024 | 2025 | 2026 |
| Evolution of the CIT rate for companies with a net taxable income lower than MAD 300 000 | 10% | 12,5% | 15% | 17,5% | 20% |
| Evolution of the CIT rate for companies with a net taxable income ranging from MAD 300 001 to MAD 1 million | 20% | 20% | 20% | 20% | 20% |
| Evolution of the CIT rate for companies with a net taxable income higher than MAD 1 million and lower than MAD 100 million | 31% | 28,25% | 25,5% | 22,75% | 20% |
| Evolution of the CIT rate for companies with a net taxable income of MAD 100 million or more | 31% | 32% | 33% | 34% | 35% |
As for companies carrying out industrial activities, CIT rates will progressively evolve, from 2023 to 2026, as follows:
| Fiscal years | 2022 | 2023 | 2024 | 2025 | 2026 |
| Evolution of the CIT rate for companies carrying out industrial activities with a net taxable income lower than MAD 100 million | 26% | 24,5% | 23% | 21,5% | 20% |
| Evolution of the CIT rate for companies carrying out industrial activities with a net taxable income of MAD 100 million or more | 31% | 32% | 33% | 34% | 35% |
Social solidarity contribution (SSC)
The 2023 Finance Act extended the application of the Social Solidarity Contribution for corporate profits and professional income for the years 2023, 2024 and 2025.
The contribution is calculated:
- For companies: Based on the same amount of net profit used for the calculation of the CIT and which is equal or superior to 1 million dirhams, for the last closed fiscal year.
- For individuals: Based on the net income made and which is equal or superior to 1 million dirhams, as of the last closed fiscal year.
SSC calculation method and applicable rates for companies
For companies, the SSC is calculated on the net taxable profit of the previous fiscal year 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 |
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.
Minimum contribution
The 2023 Finance Law has reduced the minimum contribution rate from 0.4% to 0.25% for all companies regardless of the reported current result and to 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.
Other measures
The 2023 Finance Law introduced a reform on the WHT rate applicable to income from shares, units and similar income that extends to 2026. Thus, the target rate of 10% would not be applicable until January 2026. As such, WHT rate on dividends will progressively evolve, from 2023 to 2026.
The WHT rate applicable to dividends is the one corresponding to the year in which these products were distributed as follows:
| Fiscal year | Applicable Rate |
| 2023 | 13,75% |
| 2024 | 12,5% |
| 2025 | 11,25% |
| 2026 | 10% |
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