Morocco's 2026 Finance Law: What Changes for Foreign Investors

At a glance

Corporate tax (IS) for 2026: 20% on net profit below MAD 100 million, 35% at MAD 100 million or more, 40% for banks and insurers. The four-year rate convergence that began in 2023 ends this year.
Dividend withholding tax: 10% on profits from financial years opened on or after 1 January 2026; 2025 profits remain at 11.25%. PwC lists a 10% dividend rate under the China-Morocco tax treaty.
From 1 July 2026, companies with turnover of MAD 500 million or more must withhold 75% of the VAT on services they buy (100% if the supplier has no tax compliance certificate). The threshold falls to MAD 200 million by 2028, and a new 5% withholding on rent follows the same timetable.
From 1 January 2026, import duty on household washing machines rose from 2.5% to 17.5%, and on solar modules from 2.5% to 10%.
The 2027 draft Finance Law, presented on 23 October 2026, proposes raising the income tax threshold to MAD 60,000 and a 5% tax prepayment on goods imported for resale from 1 July 2027. These are proposals, not law.

In Morocco, the annual Finance Law (Loi de Finances) is where most tax changes are made. The 2026 law, Law No. 50-25, was promulgated on 10 December 2025 and published in the Official Bulletin on 16 December 2025. Most measures apply from 1 January 2026; the new withholding rules for private companies start on 1 July 2026.

For foreign investors, headline rates are now settling after years of scheduled cuts. Compliance, on the other hand, is getting more detailed as the tax administration leans on withholding at source and digital reporting.

Rates and conditions depend on each company's situation. Please confirm every rate with a licensed Moroccan accountant before making decisions.

Corporate tax: convergence complete

The 2023 Finance Law adjusted the old rates (10% to 37%) each year from 2023 to 2026, converging on three rates: 20%, 35% and 40%. According to PwC's Worldwide Tax Summaries (last reviewed 30 April 2026), the rates for 2026 are:

Who	2026 rate
Companies with net profit below MAD 100 million	20%
Companies with net profit of MAD 100 million or more	35%
Credit institutions, insurers and reinsurers	40%
Companies in industrial acceleration zones; Casablanca Finance City companies	20%

For most SMEs, the relevant figure is simply 20%. Companies created from 1 January 2023 that sign an investment agreement with the State to invest MAD 1.5 billion in tangible assets, held for ten years, also qualify for 20%.

The minimum contribution (cotisation minimale) is 0.25% of turnover, due whether or not the company makes a profit, or 0.15% for sellers of certain goods such as petroleum products, sugar, flour and medicines. New companies are exempt for their first 36 months of activity.

The social solidarity contribution (CSS) has been extended to 2026, 2027 and 2028 for taxable profits of MAD 1 million or more:

Taxable profit (MAD)	CSS rate
1 million to under 5 million	1.5%
5 million to under 10 million	2.5%
10 million to under 40 million	3.5%
Above 40 million	5%

Dividends, cross-border payments and VAT withholding

Dividend withholding. Under the 2023 Finance Law, the rate fell from 15% to 13.75% for 2023 profits, 12.5% for 2024, 11.25% for 2025 and 10% for financial years opened from 1 January 2026. The rate follows the year the profit was earned, so 2025 profits distributed in 2026 still bear 11.25%, which is the domestic rate PwC lists for 2026.

Treaty rates for Chinese shareholders. PwC's treaty table gives the following rates under the China-Morocco treaty: 10% on dividends, 0% or 10% on interest, and 5% or 10% on royalties. Claiming it depends on conditions such as proof of Chinese tax residence, which your accountant should check.

Service fees paid abroad. PwC notes a 10% domestic withholding tax on services rendered by non-residents, but treaties, which override domestic law, limit withholding to payments that qualify as royalties. Plan any fees a Chinese parent charges its subsidiary in advance.

VAT rates. According to the tax authority's Circular 737 on the 2026 law, the 2024-2026 VAT reform leaves two main rates: 20% and 10%.

VAT withholding on services. For SME cash flow, this is the key change. As Deloitte's tax lawyers explain, large payers must withhold 75% of the VAT on services if the supplier holds a tax compliance certificate, and 100% if not, at the time of payment. The scope widens in three steps, based on the payer's turnover excluding VAT:

From	Who must withhold
1 July 2026	Credit institutions, insurers and companies with turnover of MAD 500 million or more
1 January 2027	Companies with turnover of MAD 350 million or more
1 January 2028	Companies with turnover of MAD 200 million or more

Service suppliers to large clients should keep their compliance certificate current and expect less VAT with each payment.

Rent withholding. A new 5% withholding on rent paid to companies and individual landlords follows the same thresholds and dates, and is creditable against the landlord's corporate or income tax. According to Finances News Hebdo, tax withheld on July 2026 rent had to be paid through the tax authority's SIMPL portal by 1 September 2026.

Other VAT points. Since 1 January 2026, VAT returns must include a schedule of transactions with non-residents. For projects under an investment agreement with the State, the VAT exemption on capital goods can now run for 60 months instead of 36, on an online request filed before the original period ends.

Registration duties and digital compliance

According to Deloitte, the law also changed several everyday rules:

Share transfers. From 1 January 2026, registration duty on transfers of shares in real-estate companies falls from 6% to 5%. Other share transfers stay exempt only with a certificate that the company is not predominantly real estate.
Cash payments. From 1 July 2026, an extra 2% duty applies to paid transfers of property, real rights or goodwill above MAD 300,000 when the deed does not state a compliant payment method.
Property sales by non-residents. From 1 January 2026, non-resident companies selling Moroccan property must declare and pay tax on the gain within 30 days after the month of sale.
Digital administration. Every taxpayer must register an electronic address on the SIMPL platform for tax notices, and accounts must be kept electronically and able to produce a standard accounting entries file (FEC).

Customs duties: a push for local manufacturing

The 2026 law raised duties on several finished goods and cut them on some inputs, effective 1 January 2026, according to La Vie Eco (see also Le360 on the draft):

Product	Previous duty	New duty
Household washing machines	2.5%	17.5%
Household freezers	10%	17.5%
Photovoltaic cells assembled into modules	2.5%	10%
Plastic monofilaments for brooms	2.5%	17.5%
Inputs for semi-automatic washing machines	30%	17.5%
Tinplate cans for aerosols	30%	17.5%

Importers of finished appliances and solar panels face higher landed costs, while local assemblers benefit from cheaper inputs.

Personal income tax: points for expatriate staff

PwC gives the current scale as follows:

Annual taxable income (MAD)	Rate
0 to 40,000	Exempt
40,001 to 60,000	10%
60,001 to 80,000	20%
80,001 to 100,000	30%
100,001 to 180,000	34%
Over 180,000	37%

Tax residents are taxed on worldwide income; non-residents only on Moroccan-source income. From 2026, the deduction per dependant rises from MAD 500 to MAD 600, capped at MAD 3,600. Employees of Casablanca Finance City companies may opt for a flat 20% rate for up to ten years. Residents must declare untaxed foreign investment income by 1 April of the following year.

Your first year: a tax calendar

For a company whose financial year matches the calendar year, the main dates and rules are (from PwC, PwC and Hespress):

Item	Rule
Annual corporate tax return	Within three months of year end, i.e. by 31 March
Corporate tax instalments	Four a year, each 25% of the previous year's tax; the second 2026 instalment was due by 1 July 2026
Payroll income tax	Withheld and paid monthly; tax on May 2026 salaries was due by 1 July 2026
Minimum contribution	Not due for the first 36 months of activity
Business tax (taxe professionnelle)	10% to 30% of the rental value of premises and fixed assets; exempt for the first five years

Filings and payments are made online. PwC lists penalties of 5% for a return filed within 30 days of the deadline, 15% after that, and 20% where tax is assessed for non-filing. Late payment of VAT and withholding taxes carries a 20% penalty, plus interest of 5% for the first month and 0.5% for each month after.

A worked example: getting profit back to China

This simplified example shows how the pieces fit; it is not tax advice. Take a Moroccan SARL wholly owned by a Chinese shareholder, with 2026 turnover of MAD 10 million and taxable profit of MAD 800,000:

Item	MAD
Minimum contribution check: 10 million × 0.25%	25,000
Corporate tax: 800,000 × 20%	160,000
CSS (profit below MAD 1 million)	0
Profit after tax	640,000
Dividend withholding when distributed in 2027: 640,000 × 10%	64,000
Net amount to the Chinese shareholder	576,000

Corporate tax exceeds the minimum contribution, so it is what the company pays. Had the distribution come from 2025 profits, the domestic rate would be 11.25%; ask your accountant whether the 10% treaty rate can apply instead. Tax treatment in China, including foreign tax credits, needs separate advice.

Looking ahead: the 2027 draft (proposals only)

On 23 October 2026, Economy and Finance Minister Fouzi Lekjaa presented the 2027 draft Finance Law to a joint sitting of Parliament (see also Le360). Le Matin reported on 30 October that the House finance committee had closed its debate on the bill. According to Hespress and Challenge, the main proposals are:

Income tax (draft). The exempt threshold would rise from MAD 40,000 to MAD 60,000 from 1 January 2027. The 10% band would then widen each year, towards a 2031 target of: exempt up to MAD 60,000, 10% up to 150,000, 20% up to 500,000 and 30% above.

Import prepayment (draft). From 1 July 2027, companies and individual traders importing goods for resale in the same state would prepay 5% of the customs value, collected by customs with import duties. It would apply in principle for 60 months from the first import, and after that to importers without a tax compliance certificate issued in the previous six months. Amounts paid would be creditable against tax due, with any excess refundable. Capital goods and imports under customs economic regimes would be excluded.

Other proposals (draft). A 40% corporate tax rate for fuel importers and distributors with net profit of MAD 100 million or more, for financial years opened from 1 January 2027; a stamp duty of 6% to 24% on the first registration of vehicles worth more than MAD 400,000 excluding VAT; and tax exemptions linked to the 2030 FIFA World Cup.

None of this is law until Parliament adopts the bill and it is published in the Official Bulletin; details may still change.

Questions to ask your accountant before you invest

What financial year should the company use, and when is its first filing due?
Does the company qualify for the 36-month minimum contribution exemption and the five-year business tax exemption, and from what date do they run?
Which dividend rate applies to 2025 and 2026 profits, and what documents are needed to claim the treaty rate?
How will service fees or royalties paid to the Chinese parent be taxed?
Do any of our main clients fall within VAT withholding, and how often must our compliance certificate be renewed?

The challenges

Moroccan tax rules change almost every year, often depend on the financial year, a turnover band or a certificate, and are published in French and Arabic. Filings must be handled by a licensed accountant: applying the wrong year's dividend rate, letting a compliance certificate lapse or missing a notice on the online portal can mean penalties or cash tied up in withheld VAT. Appoint an accountant before you incorporate and review each new Finance Law with them.

What it means for Chinese businesses

Traders and importers: higher duties on finished appliances and solar panels, and a possible 5% import prepayment from mid-2027 if the draft is adopted. Local assembly may be worth costing.
Service providers: if your clients are large Moroccan companies, secure a tax compliance certificate and budget for VAT withholding.
Manufacturers: the 20% rate is now stable, including in industrial acceleration zones, and projects under State agreements can extend the VAT exemption on equipment to 60 months.
Holding structures: 10% withholding on dividends from 2026 profits, matching the treaty rate, gives a clearer basis for planning profit repatriation.

Sources

Information as of November 2026, for general reference only; not investment or tax advice. Confirm all rates with a licensed accountant.

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