A simplified and modernized tax system
The Moroccan tax system, for the sake of simplification, rationalization and modernization, has been codified under the General Tax Code (CGI).
The main taxes are:
- Income Tax concerning income and profits of individuals and private companies,
- Corporate Tax concerning income and profits earned by companies and other legal entities,
- Value added tax (VAT), which applies to consumer spending,
- Registration fees and stamp duties.
Moreover, in order to encourage investment and promote certain sectors, the existing legislative provisions relating to tax incentives envisage tax exemptions in terms of common law and at the sectoral level.
The Income Tax (IT) applies to income and profits of natural persons and legal entities that have not opted for Corporate Tax.
The concerned incomes are:
- Wage income;
- Professional income;
- Land income and profits;
- Income from movable capital and profits;
- The agricultural income (exempt from the IT and CT until 12/31/2013 (L.F. 2009).
Starting from January 1, 2010, the scale for calculating the IT is between 0% and 38%.
Besides, specific rates and partial or total exoneration apply for certain products and payments.
For more informations, please download the Factsheet Income Tax
The Corporate tax applies mandatorily to income and profits of capital companies, public institutions and other corporations that carry out lucrative transactions and on an irrevocable basis to partnerships.
30%: Normal rate
37 %: Fixed rate for credit institutions, Bank Al Maghrib, CDG, insurance and reinsurance companies and leasing companies.
Besides, specific rates and partial or total exoneration apply for certain products and payments
For more informations, please download the Factsheet Corporate Tax.
Value Added Tax
VAT applies to industrial, craft, commercial and liberal activities, as well as import operations.
Retailers’ income is also taxable when their turnover accomplished during the year exceeds or equals 2,000,000 DH.
There are three rates:
- A standard rate of 20%
- Reduced rates of 7% for certain consumer products,
- 10% on certain food products, beverages and hostelry industry in particular and 14% for other products.
Besides, specific rates and partial or total exonerations apply for certain products and payments.
For more informations, please download the Factsheet Value Added Tax