Corporate income tax, commonly referred to as IS, is a major pillar of the Moroccan tax system, since it applies to all companies subject to tax on profits made in Morocco. It applies to corporations such as SARLs, SAs, SASs and branches of foreign companies. Its purpose is to tax the company's net taxable income, calculated after deduction of expenses and depreciation, but before distribution of any dividends.
Until recently, IS in Morocco operated on a progressive scale ranging from 10 % to 31 %, to which were added specific rates for certain sectors and for companies located in industrial acceleration zones. The Finance Act 2023 introduced a major reform aimed at simplifying and harmonizing the tax system through the introduction of a unified rate of 20 % applicable to all companies by 2027. This reform is being implemented gradually, with transitional rates that change from year to year to allow companies to adapt. Companies with profits in excess of 100 million dirhams will continue to be subject to a higher rate of 35 %, reflecting the contribution required from large companies.
From an entrepreneurial point of view, this reform represents both an opportunity and a challenge. A unified tax system provides greater clarity for domestic and foreign investors, and reduces distortions of competition between companies subject to different regimes. On the other hand, it requires more accurate anticipation of the future tax burden. Entrepreneurs must now factor this change into their financial forecasts, and adjust their business models to maintain profitability over the long term.
The Moroccan corporate income tax is more than just a tax rate; it also comes with strict reporting obligations and deadlines. Companies must file an annual income tax return, pay instalments and comply with the territoriality and deductibility rules set out in the General Tax Code. Tax compliance thus becomes a strategic issue, since any delay or error can result in heavy penalties.
For foreign investors, Morocco offers a clear legal framework thanks to tax treaties signed with numerous countries. These agreements avoid double taxation and ensure greater legal certainty for cross-border flows. The Moroccan tax system is therefore both competitive and in line with international standards, particularly with the transition to a single tax rate that facilitates comparison with other emerging markets.
In short, corporate tax in Morocco is both an instrument for financing the State and a lever for economic competitiveness. For the entrepreneur, understanding and anticipating it is not simply an administrative constraint, but an essential component of business strategy and decision-making.
Auditia helps managers and investors optimize and comply with their tax affairs. From tax preparation to strategic planning, we help you turn corporate tax into a factor of security and performance. Contact us today for tailored support.
