Morocco's corporate income tax (IS) reform, launched by Finance Law 2023, is now fully complete in 2026. The old flat 31% rate for large companies is gone: IS is now based on a two-rate scale determined by a single threshold at MAD 100 million. This guide covers the rates, the minimum contribution, sector-specific rates, and the 2026 changes.
IS rates 2026: two-rate scale
| Net taxable profit (MAD) | Applicable rate |
|---|---|
| Under 100,000,000 | 20% |
| 100,000,000 or more | 35% |
The progressive reform (2023-2026) gradually lowered rates across sub-brackets (up to 300K, 300K-1M, over 1M). In 2026, the final year, all sub-brackets under MAD 100 million converge at 20%, making the effective scale a simple two-rate system.
Worked example
A company with MAD 5,000,000 net taxable profit pays:
IS = 5,000,000 × 20% = MAD 1,000,000
A very large group with MAD 150,000,000 profit pays:
First 100,000,000 ... 20% → MAD 20,000,000 (the 35% applies above the threshold)
Simplified: 150,000,000 → 35% bracket applies once over 100M.
Confirm the exact mechanical treatment of the threshold with the DGI; in practice, the 35% rate bites the portion of profit at/above the threshold.
Sector-specific rates
| Company type | IS rate |
|---|---|
| Banks, credit institutions, insurance companies | 40% |
| Free zone companies (Casablanca Finance City, offshore zones) | Reduced rates or exemption under conditions |
| Innovative start-ups (CRI label) | Full exemption for 5 years |
| Exporting companies | Reduced rate on export turnover under conditions |
Minimum contribution (Cotisation Minimale, CM)
Even without profit, companies must pay a minimum contribution:
CM = higher of: MAD 3,000 or 0.25% × [turnover + other taxable income]
The CM is credited against IS due; only the excess IS (above CM) is payable. The CM exists so that every active company contributes something, profit or not.
Finance Law 2026 changes to IS
1. Non-resident companies without a Moroccan establishment. Foreign companies with no fixed presence in Morocco that realise real-estate capital gains must declare them within 30 days of disposal, paying IS at 20% (under MAD 100M) or 35% (at/above).
2. VAT self-assessment on industrial waste. VAT on industrial-waste transactions now falls under self-assessment by the industrial buyer – part of the broader VAT reform.
How IS fits with the wider tax system
IS is one of three core corporate taxes. Companies also account for VAT (TVA) on their sales/purchases and the new withholding tax (RAS) 2026 on services. Small micro-activity, meanwhile, usually falls under the auto-entrepreneur CPU rather than IS.
FAQ
What is the corporate tax rate in Morocco in 2026?
20% on net taxable profit under MAD 100 million, and 35% at/above that threshold. Banks and insurers pay 40%.
Do loss-making companies pay tax?
Yes – the minimum contribution (CM) of at least MAD 3,000 (or 0.25% of turnover) is owed even with no profit, credited against future IS.
What is the IS rate for a startup?
Innovative start-ups with the CRI label can claim a full 5-year exemption; otherwise the standard 20% applies (under the threshold).
Sources
- Direction Générale des Impôts (DGI) – tax.gov.ma
- Loi de Finances n° 50-25 pour 2026 – finances.gov.ma
- Code Général des Impôts 2026 – finances.gov.ma
Disclaimer
This article is for general information only and does not constitute tax or legal advice. A company's tax position depends on many specific factors. Consult a certified accountant or licensed tax adviser.
Marouan focuses on corporate taxation, VAT, and business compliance in Morocco. He writes practical guides that help entrepreneurs and companies navigate the Moroccan tax system with confidence.
