Navigating Morocco’s Tax Landscape: A Guide for Foreign Companies

Introduction: Understanding Morocco’s Tax Landscape

Morocco offers an increasingly attractive environment for foreign investors — but proper tax planning is essential from the moment your business is registered. From standard corporate tax rates to VAT registration and industry-specific incentives, understanding the Moroccan tax system will help you reduce risks and ensure full compliance.

NH Management works closely with international clients to optimize their tax structures in Morocco, ensuring their business models remain compliant, efficient, and future-ready.

Corporate Tax: Standard Rates and Recent Reforms

Corporate income tax in Morocco is levied on a progressive scale. As of the latest reform, the applicable rates are:

• 10% on net profit up to MAD 300,000

• 20% on profit between MAD 300,001 and 1,000,000

• 32% on profit exceeding MAD 1,000,000

• 37% for companies operating in financial institutions, credit providers, insurance, and energy sectors

Note: The Moroccan government has committed to gradually aligning corporate tax bands under fiscal reforms targeting fairness and simplification. Morocco’s corporate income tax is administered by the General Tax Directorate (DGI), which outlines tax bands, filing requirements, and online services.

VAT (Taxe sur la Valeur Ajoutée)

VAT in Morocco applies to most goods and services at the standard rate of 20%. Some categories are subject to reduced rates (14%, 10%, or 7%), while others — such as basic food items and education services — may be exempt.

Key points:

• VAT registration is mandatory once turnover exceeds MAD 500,000

• Input VAT on goods and services used in the business may be recoverable

• VAT returns must be submitted monthly or quarterly, depending on company size

NH Management ensures VAT registration and timely return filing, helping clients avoid penalties and cash flow issues related to delayed reclaims.

Withholding Tax (WHT)

Withholding tax applies to various payments made to non-residents:

• 10% on dividends paid to non-resident shareholders

• 10% on interest paid abroad

• 10%–30% on royalties and service fees, depending on the nature of services

Double tax treaties may reduce or eliminate WHT in certain cases. NH Management reviews treaty eligibility and advises on structuring payments through compliant frameworks.

Other Relevant Taxes

• Registration Duties: Payable on the transfer of assets, real estate, or company shares (rates vary between 1% and 6%)

• Business Tax (Taxe Professionnelle): Annual tax based on rental value of premises, due after the second year of operation

• Municipal Tax (Taxe de Services Communaux): Applied to the rental value of property for businesses operating in urban areas

Free Zones and Tax Incentives

Businesses established in free zones (e.g. Tangier Free Zone, Kenitra Atlantic Free Zone, Casablanca Finance City) benefit from substantial tax incentives:

• Corporate Tax Holiday for 5 years

• Reduced rate of 8.75% thereafter

• No VAT or customs duties within the zone

• Exemption from registration duties and business tax for a defined period

NH Management assists in determining eligibility, managing zone registration, and ensuring ongoing compliance with reporting requirements.

Transfer Pricing Compliance

Companies involved in cross-border transactions with related parties must comply with Morocco’s transfer pricing rules, including:

• Maintaining contemporaneous documentation

• Justifying arm’s length pricing

• Preparing annual declarations for tax authorities

This applies to intercompany loans, service agreements, intellectual property use, and intra-group trading. NH Management works with tax advisors to ensure your documentation aligns with Moroccan law and OECD guidelines.

Tax Compliance Timeline

Obligation	Frequency
Corporate Tax Return (IS)	Annually
VAT Return	Monthly/Quarterly
Payroll Tax and CNSS	Monthly
Withholding Tax Declarations	Monthly
Annual Financial Statement Filing	Yearly (by April)

We ensure your filing calendar is maintained and all declarations are submitted on time — minimizing exposure to audits or penalties.

FAQs

Can my company repatriate profits to my home country?
Yes. Profits can be repatriated after meeting all tax obligations. We advise on optimal timing and banking procedures for international transfers.

Do I need to file taxes if I have no profit yet?
Yes. Annual declarations are required even for loss-making companies.

Are there tax incentives for specific industries?
Yes. Target sectors such as renewable energy, tourism, and export-oriented manufacturing may benefit from reduced rates or government-backed incentives.

Conclusion: Start with the Right Tax Structure

Tax planning is not a formality — it’s a foundation. Morocco’s evolving tax system rewards transparency, efficiency, and structure. Whether you’re entering via a trading company, hospitality venture, or holding structure, NH Management ensures that your tax setup is optimized for long-term success.

Setting up in Morocco or reviewing your company’s tax position? Contact NH Management for a full tax and compliance assessment. We align your business with Moroccan law and help you benefit from all available incentives. Get in touch with us!