Business taxation in Morocco, including in Casablanca, is primarily governed by the General Tax Code (CGI). Companies operating in Morocco must be aware of the following main taxes:
Corporate Income Tax (CIT)
CIT is a tax levied on company profits. CIT rates in Morocco have evolved towards progressivity and convergence. For example, under the provisions of the 2023 Finance Act, rates are moving towards:
- A reduced rate for the initial thresholds of net taxable profit (e.g., 12.5% for the first 300,000 MAD of profit in 2023, evolving towards 20%).
- A target rate of 20% for profits below 100 million MAD.
- A higher rate for large companies (net taxable profit equal to or greater than 100 million MAD), which was 32% in 2023 and is trending towards 35% by 2026 (except for credit institutions and similar organizations, insurance and reinsurance companies, which are subject to specific higher rates).
Lower derogatory rates may apply to specific sectors, such as export companies, the hotel industry, or newly created industrial companies benefiting from incentive schemes. CIT is subject to an annual declaration and is paid in provisional installments during the fiscal year. For context on how these taxes fit into the broader investment landscape, see our article on foreign investment protections and incentives in Morocco.
Personal Income Tax (IR)
Individual entrepreneurs (natural persons who have not opted for a corporate structure subject to CIT) are subject to Personal Income Tax (IR) on their professional income. IR is a progressive tax, with brackets ranging from 0% to 38% (marginal rate), also applicable to salaries paid by companies (the company then operates a withholding tax). IR also applies to other categories of personal income, such as investment income (dividends, interest) and real estate gains.
Value Added Tax (VAT)
VAT is an indirect consumption tax that applies to most goods and services. In Morocco:
- The standard VAT rate is 20%.
- Reduced rates exist, for example, a 7% rate for certain essential goods or specific services (such as certain social housing units, or the rental of agricultural tools and equipment).
- An intermediate rate (e.g., 14% or 15% on certain goods like electricity since 2024, with a trend towards rate simplification). Exports of goods and services are generally exempt from VAT, often with the right to deduct (a system known as "exemption with refund"). Liable businesses must register for VAT, collect it on their sales, declare it (usually monthly or quarterly), and remit it to the state, after deducting the VAT incurred on their own purchases.
Business Tax (formerly "Patente")
This is a local tax, collected for the benefit of municipalities, based on the rental value of business assets (buildings, land, fixtures, equipment, and tools). It is due annually by any natural or legal person carrying out a commercial, industrial, artisanal, or professional activity as of January 1st of the tax year. Temporary exemptions exist, notably a five-year exemption for newly created companies. Business tax rates vary depending on the nature of the activity and the rental value of the taxable items. An initial declaration must be filed with the local tax administration (usually via the nearest Tax Center), and the tax is then paid annually. Non-payment of the business tax results in penalties and late payment surcharges.
Other Local Taxes and Contributions
In addition to the business tax, companies may be subject to other local taxes, such as:
- Urban Tax (or housing tax and tax on municipal services for business premises), based on the gross rental value of the premises.
- Construction Tax on certain municipal permits. Companies may also be liable for the national audiovisual landscape promotion fee if they use television receiving devices. During certain operations (company formation, capital increase, sale of shares, sale of a going concern, etc.), various registration fees may apply (e.g., 1% on capital contributions at incorporation, variable rates on sales of shares or stocks).
Tax Administration
The Moroccan tax administration is the General Tax Directorate (DGI). In Casablanca, as in other major cities, several regional and local tax centers are available to businesses for tax registration formalities (obtaining the Tax Identification Number - NIF), VAT, IR, and CIT declarations and payments, and general monitoring of tax files. Since 2021, Morocco has significantly developed online tax services, making electronic payment and e-filing ( "SIMPL" or e-tax services) accessible and often mandatory via the DGI portal.
If you're just starting out, our guide on how to register a company in Casablanca can walk you through the initial setup. For a comprehensive overview of Morocco's business legal environment, please visit our main guide: Legal Framework for Doing Business in Morocco: An Investor's Guide.