Moroccan Tax Code

Moroccan Tax Code

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. Specific cases The rate of 20% is also applicable to the portion of the taxable profit above MAD 1 million for some companies, such as exporting companies, mining companies, companies carrying out service outsourcing activities inside or outside the industrial integrated platforms devoted to those activities, etc. The rate of 31% is reduced to 26% for companies holding an industrial activity with a net profit of less than MAD 100 million. Lower CIT rates might apply to some specific activities. A higher CIT rate of 37% applies to credit institutions, insurance companies, and Takafoul insurance and reinsurance companies. Non-resident companies can, under certain conditions, opt for an alternative tax at the rate of 8% of the amount of their contract, whatever the taxable income is.