Morocco's Finance Law 2026 (Loi de Finances n° 50-25) marks a structural shift in how tax is collected. The retention à la source (RAS) - withholding tax - has been expanded well beyond its 2025 scope, turning large companies, banks, and landlords into "tax collectors" who deduct tax at the source of each payment.
This overview covers every RAS change for 2026, the rates, who is affected, and how to declare. For the deep-dives, see our dedicated guides on dividends and the service-withholding expansion - and for number-by-number scenarios, our 10 worked examples.
What is the retenue à la source (RAS)?
The RAS is a mechanism where the payer (a company, bank, or tenant) withholds a percentage of a payment and remits it directly to the DGI (Direction Générale des Impôts) on behalf of the recipient. The withheld amount is an advance on the recipient's final IR or IS - it is imputed against the year-end tax bill and any excess is refundable. It is not an additional tax. For reclaiming overpaid amounts, see our Morocco tax refund guide.
A common mistake is to confuse the RAS with VAT. VAT is a tax on consumption and is recoverable; the RAS is a prepayment of income tax. See our Morocco VAT reform guide for the distinction.
The 2026 RAS rate table
| Income category | 2026 rate | Notes |
|---|---|---|
| Dividends (2026 distributions) | 11.25% | Down from 12.5% in 2025; 10% in 2027 |
| Fixed-income products | 20% (libératoire) / 30% | Depending on beneficiary status |
| Fees & services (honoraires) | 10% - 30% | Depending on nature & status |
| Rent paid to IS companies / IR RNR-RNS | 5% (HT) | NEW - from 1 July 2026 |
| Payments to non-residents | 10% - 30% | Per income type & tax treaty |
| Online gambling gains (foreign source) | 30% | Remitted by end of following month |
The three big changes in 2026
1. Dividends fall to 11.25% (and keep dropping)
The RAS on dividends paid to resident individuals continues its planned phase-down: 13.75% (2023) → 12.5% (2024-2025) → 11.25% (2026) → 10% (2027). The rate applied is the one in force in the year of distribution, not the year the profit was earned. Full details and a worked example in our dividend RAS guide.
2. A new 5% withholding on rent
From 1 July 2026, rent paid for built or unbuilt property to legal entities subject to IS and to individuals under the IR RNR/RNS regimes is subject to a 5% withholding (calculated on the HT amount). It is imputable on the landlord's annual IR or IS, with a right to refund. Our rental withholding guide explains who is concerned and how it works in practice.
3. The service-withholding is broadened to large companies
Previously limited to a narrow perimeter, the RAS on service fees paid to legal entities is extended to:
- credit institutions and assimilated bodies;
- insurance and reinsurance companies;
- private companies above a progressive turnover threshold (CA HT): ≥ 500 MDH from 1 July 2026, ≥ 350 MDH from 2027, ≥ 200 MDH from 2028 (Art. 247-XXXXVI CGI).
Two withholdings can stack on one such invoice: RAS IS of 5% on the HT amount (Art. 4 bis-I / 15 bis) and the RAS TVA of 75% / 100%.
This is the most structural change of the year. Read our RAS on services guide for the threshold, the cash-flow impact, and the new RAS TVA (75% / 100% of VAT) mechanism.
Libératoire vs. non-libératoire: the key distinction
Not all RAS rates work the same way:
- Libératoire rate (e.g., 20% on certain fixed-income products, or 10% on IS-to-IS dividends): it settles the tax definitively - no further declaration of that income is required.
- Non-libératoire rate (e.g., 10-15% on honoraires, 5% on rent): it is an advance. The recipient must still file the annual global-income declaration and impute the withheld amounts, paying any complement due under the progressive IR scale.
Applying the wrong rate, or confusing the two regimes, is the most common cause of tax reassessments.
How to declare and pay in 2026
All RAS declarations are now electronic, via the DGI's SIMPL platform (tax.gov.ma):
- SIMPL-IR / SIMPL-IS - for income tax withholdings.
- SIMPL-TVA - for the new RAS on VAT (service invoices).
- Simpl-Attestation - to obtain the attestation de régularité fiscale (ARF) that reduces the VAT withholding from 100% to 75%.
Key deadlines:
- Monthly: most withholdings must be declared and paid before the end of the month following the payment.
- 2 March: annual declaration deadline for several 2025 returns (SIMPL-IR).
- 1 April: annual IS declarations and Article 174 withholdings for the previous year.
What this means for businesses
The 2026 reform demands three internal updates: (1) update accounts-payable processes to apply the correct RAS rate per supplier type; (2) obtain and track the ARF for the 75% VAT rate; (3) ensure the new rental withholding is applied from 1 July. The corporate income tax context (top IS rate now 35%) makes correct imputation even more consequential.
When in doubt about a rate or regime, consult a certified accountant. The DGI applies late-payment penalties and reassessments for misapplied withholdings.
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. It is based on the Loi de Finances n° 50-25 for 2026 and the 2026 Code Général des Impôts. Always confirm the exact provisions with the DGI or a licensed advisor.
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.
