The Moroccan economy is heavily reliant on taxes. The government collects the taxes, and the institution in charge of Moroccan tax policy is known as the “General Management of Taxes.”
Today, Moroccan taxes are divided into 4 main parts: direct taxes, value-added taxes, registration fees, and stamps.
Income tax
Income tax applies to the income and profits of natural persons and partnerships that have not opted for corporate income tax. The following are the concerned incomes:
- Wages and assimilated
- Professionals
- Agricultural
- Income and property profits
- Income and profits from movable capital
Income tax rates
- Between 1 and 30 000 MAD is 0%
- Between 30 001 and 50 000 MAD is 10%
- Between 50 0001 and 60 000 MAD is 20%
- Between 60 001 and 80 000 MAD is 30%
- Between 80 001 and 180 000 MAD is 34%
- More than 180 001 MAD is 38%
The tax rate for foreign companies
Morocco has a territorial tax. If a foreign company has a permanent establishment in Morocco, it is liable for Moroccan-sourced income. For qualified operations, there is an opt-in tax of 8% of the contract amount (see rate table), which requires the production of a tax statement by April 1 of each fiscal year. Otherwise, tax breaks are available to both domestic and foreign businesses. If a corporation is incorporated in Morocco or has its effective administration in Morocco, it has Moroccan residence status.
Capital gains taxation
Capital gains arising from the sale of immovable property are normally subject to a 20% tax. In some circumstances, higher rates are appropriate. Capital gains arising from the sale of stock are taxed at a rate of 20%. Capital gains on the sale of a home that has been used as a primary residence for at least six years are tax-free.
Other corporate taxes
A 1.6 percent payroll tax (also known as professional training tax) is levied on the gross monthly income of employees who are required to pay social security contributions.
All written or spoken conventions, such as the transfer of the real estate, shares, or rights; business formation; equity increase; and goodwill transfer, require registration. The registration fees range from 1% to 6% of the total cost. Specific operations and conventions are also subject to a flat cost of 200 MAD. The formation of the firm and the capital growth is subject to 1% registration duties. Transfers of non-listed shares are subject to 4% registration fees. Transfers of real estate company shares, on the other hand, are subject to a 6% tax. For the transfer of goodwill, the appropriate rate is 6%.
A municipal tax of 10.5 percent of the rental value of properties in metropolitan areas and 6.5 percent of the rental value of properties on the outskirts of cities is imposed. A tax on the rental value of business premises (rented or owned) and fixed assets makes up the business tax. The tax rates range from 10% to 30%, with the first five years of activity being tax-free. The percentage of the cost above 50 million MAD is exempt from the rental value.
Value Added Tax
The typical percentage is 20%. Certain consumer products are eligible for a 7% discount, while food, beverages, and the hotel business are eligible for a 10% discount, and other products are eligible for a 14% discount.
Net taxable income (NTI)
The gross taxable income (TGI) is reduced by net taxable income (NTI), which is a lump sum for professional expenditures. This sum is equal to 20% of gross taxable income (with exceptions for journalists, miners, merchant marine workers, and others) up to a maximum of 30,000 MAD.
