The Moroccan Tax System at a Glance
From your first sale to the dividend you receive, this diagram shows every tax a company in Morocco meets, its 2026 rate and the administration that collects it.
How taxes flow through a company in Morocco
Read each line from left to right: something happens in your business ➜ it creates a tax ➜ that tax is paid to one office. Colours show which office.
20% normal rate10% some products0% exports
You add VAT to your price, collect it from the customer and pass it on to the State. The VAT you paid on your own purchases is taken off.
20% for most companies35% if profit is MAD 100m or more
A tax on the company's profit. You pay it in four parts during the year, then settle the balance. Even with no profit, a small minimum tax applies (0.25% of sales), except in the first 3 years.
0% up to MAD 40,000 a yearfrom 10% to 37% above
The company takes it from each salary and pays it to the State. Low salaries pay no tax.
shared by employer and employee
Pays for pensions, family allowances and health insurance. Declared every month.
11.25% in 202610% from 2027
The company keeps this tax before paying you. If you live in a country that has a tax treaty with Morocco, the rate can be lower.
10%
The company keeps 10% of the payment and pays it to the State. A tax treaty can change this.
depends on the product
Paid when the goods clear customs. The import VAT can then be taken off like normal VAT.
based on the rent value
Taxes for the town. New companies usually pay no business tax for their first 5 years.
depends on the deal
A fee paid when the official document is registered.
Rates apply to 2026 under the Finance Law for 2026. Special regimes (free zones, Casablanca Finance City, exempt activities) and tax treaties can change them. This diagram is general information and does not replace personalised advice.
What changed recently
Morocco has completed a major tax reform. Since 1 January 2026, corporate income tax works with two main rates, 20% and 35%, after four years of transition. VAT has been simplified to two rates, 20% and 10%, and the former 7% and 14% rates no longer exist. The income tax scale on salaries was revised in 2025, with a tax-free band up to MAD 40,000 a year and a top rate of 37%. The withholding tax on dividends is falling step by step, to 10% from 2027.
For a foreign investor, the practical consequence is simple: an invoice, a payslip or a dividend prepared with the old rules is now wrong. Up-to-date bookkeeping and tax filings are what keep your company safe in a tax audit.
The 3 things to remember
1. Your customers pay the VAT
You only collect it and pass it on. It is not a cost for your company, as long as it is declared correctly.
2. The company pays tax on its profit
20% for almost all companies. No profit, almost no tax.
3. You pay a small tax when you take the money out
11.25% on dividends in 2026, often less thanks to tax treaties.
Advantages for foreign investors
🔄 Your money can go home
If you bring your investment in foreign currency through a Moroccan bank, you can later send abroad your dividends and the money from selling your company.
🤝 Tax treaties
Morocco has signed tax treaties with many countries. They avoid paying tax twice on the same income and often reduce the tax on dividends.
🆕 A softer start for new companies
No minimum tax for the first 3 years and, in general, no business tax for the first 5 years.
🚢 Exports without VAT
Sales to customers abroad are charged 0% VAT, and you can recover the VAT paid on your purchases.
🏭 Special zones
Industrial acceleration zones and Casablanca Finance City keep a 20% corporate tax rate, even for very large profits.
💵 Simple, stable rates
After the 2023 to 2026 reform, there are now only two main rates for corporate tax and two for VAT.
Your tax steps as a foreigner, one by one
- Create the company. When the company is registered online, it automatically receives its tax number (IF), its company number (ICE) and its trade register number. See the full guide.
- Bring your capital the right way. Send it from abroad in foreign currency to a convertible account at a Moroccan bank, and keep every bank document. This protects your right to take your money out later.
- Set up your accounting from day one. Every invoice and every bank movement must be recorded under Moroccan rules.
- Declare VAT every month or every quarter, even when there is nothing to pay.
- Hiring? Register as an employer with the CNSS, then declare salaries and pay income tax and social security every month.
- Pay corporate tax in four instalments during the year, then file the annual tax return with your financial statements after the year-end.
- Distribute your profit. The shareholders' meeting approves the accounts and the dividend, the company keeps the dividend tax, then your bank sends the money abroad with the supporting documents.
- Check your tax treaty. If your country has a treaty with Morocco, ask for the reduced rate before the dividend is paid.
We take care of all these steps for you, in English, and tell you in advance what is due and when.
Key dates in the year
Every month
Income tax withheld on salaries, CNSS declaration, and VAT for companies on the monthly regime.
Every quarter
Corporate tax instalments, and VAT for companies on the quarterly regime.
After year-end
Annual corporate tax return with the financial statements, annual payroll declaration, and shareholders' meeting to approve the accounts.
Moroccan terms explained
Not sure what IS, TVA or CNSS mean? See our glossary of Moroccan accounting, tax and business terms. Related guides: How to set up a company in Morocco as a foreigner · Accounting services in Morocco · Bookkeeping in Morocco
Planning to invest in Morocco?
Our Invest in Morocco Package covers everything from checking your project to your first dividend: company setup, bank and capital, accounting and taxes for the first year, in English with one contact.
Let us handle your Moroccan taxes
VAT, corporate tax, payroll and dividends, filed on time and explained in English.