Morocco: company tax (IS), 2026

Built by Michael Cutajar and the OpenAccountants team. Articles are from the Code General des Impots 2026 (CGI).

General reference only. This does not constitute tax, legal or financial advice. Verify figures against the cited sources or with a licensed professional before relying on them.

Who this applies to

Companies of any form and purpose, except those in Art. 3; public bodies and other legal persons carrying on profit-making operations; associations; funds without legal personality, assessed on their manager; Moroccan establishments of non-resident companies; joint ventures (sociétés en participation) with a legal person or more than five individual partners; and economic interest groupings, assessed on the members for their share (Art. 2-I). Excluded: joint ventures with fewer than six partners, SNC and SCS formed in Morocco with individuals only, unless they make the irrevocable Art. 2-II option; de facto companies of individuals only; and transparent property companies (Art. 3). Companies are taxed on income tied to property, activity and profit-making operations in Morocco, even occasional, and on income a tax treaty gives Morocco to tax (Art. 5-I). Exemptions in Art. 6 are not covered here; refer them. Individuals: see morocco-professional-income-tax.

Rates, bands and thresholds

Item	Amount	Conditions	Tax year	Source
Normal rate	20%	Years opened from 1 January 2026; end of the 2023 to 2026 transition. A year opened before then keeps the 2025 rates in Art. 247-XXXVII-A	2026	CGI Art. 19-I-A, 247-XXXVII-A https://www.tax.gov.ma/wps/wcm/connect/08712531-1e81-4e28-a38b-2bd9edf8e09e/CGI+2026+FR.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-08712531-1e81-4e28-a38b-2bd9edf8e09e-pM5DEs1
Higher rate	35%	Net profit of MAD 100,000,000 or more; the rate applies to the whole profit. Excludes CFC service companies under Art. 6, industrial acceleration zone companies, and companies formed from 1 January 2023 with a State agreement to invest at least MAD 1.5 billion over five years in tangible fixed assets held at least ten years (public enterprises and their subsidiaries do not qualify)	2026	CGI Art. 19-I-B https://www.tax.gov.ma/wps/wcm/connect/08712531-1e81-4e28-a38b-2bd9edf8e09e/CGI+2026+FR.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-08712531-1e81-4e28-a38b-2bd9edf8e09e-pM5DEs1
Return to 20%	Three consecutive years below MAD 100,000,000	Not where the MAD 100 million was reached through Art. 9 (I-C-1) non-current income	2026	same
Banks and insurers	40%	Credit institutions and similar bodies, Bank Al Maghrib, CDG, insurers and reinsurers including Takaful. Certain microfinance SAs excluded for five years	2026	CGI Art. 19-I-C https://www.tax.gov.ma/wps/wcm/connect/08712531-1e81-4e28-a38b-2bd9edf8e09e/CGI+2026+FR.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-08712531-1e81-4e28-a38b-2bd9edf8e09e-pM5DEs1
Non-resident contractors, flat tax	8% of contract value excl. VAT	Option under Art. 16; discharges Art. 4 withholding	2026	CGI Art. 19-III-A https://www.tax.gov.ma/wps/wcm/connect/08712531-1e81-4e28-a38b-2bd9edf8e09e/CGI+2026+FR.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-08712531-1e81-4e28-a38b-2bd9edf8e09e-pM5DEs1
Non-resident gross income withholding	10%	Art. 15 income excl. VAT	2026	CGI Art. 19-IV-B https://www.tax.gov.ma/wps/wcm/connect/08712531-1e81-4e28-a38b-2bd9edf8e09e/CGI+2026+FR.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-08712531-1e81-4e28-a38b-2bd9edf8e09e-pM5DEs1
Dividends withholding	11.25%	Art. 13 income distributed from 1 January 2026; 10% from 1 January 2027	2026	CGI Art. 19-IV-B, 247-XXXVII-C same PDF
Fixed-income withholding	20%	Art. 14 and 14 bis income	2026	CGI Art. 19-IV-C https://www.tax.gov.ma/wps/wcm/connect/08712531-1e81-4e28-a38b-2bd9edf8e09e/CGI+2026+FR.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-08712531-1e81-4e28-a38b-2bd9edf8e09e-pM5DEs1
Withholding on Art. 15 bis and 15 ter payments to IS companies	5%	Art. 15 bis fees and commissions, Art. 15 ter rent, excl. VAT, paid by the State, local authorities, public enterprises and subsidiaries, banks and insurers (fees from 1 July 2026). Other businesses by last closed year turnover: MAD 500,000,000 from 1 July 2026, 350,000,000 from 1 January 2027, 200,000,000 from 1 January 2028. Rent: amounts allocated from 1 July 2026	2026	CGI Art. 19-IV-A, 247-XXXXVI, Finance Law 50-25 Art. 7-IV https://www.tax.gov.ma/wps/wcm/connect/08712531-1e81-4e28-a38b-2bd9edf8e09e/CGI+2026+FR.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-08712531-1e81-4e28-a38b-2bd9edf8e09e-pM5DEs1
Cotisation minimale	0.25%, or 0.15% on commercial sales of listed goods (petroleum products, gas, butter, oil, sugar, flour, water, electricity, medicines)	Art. 144-I-B base, excl. VAT	2026	CGI Art. 144-I-D https://www.tax.gov.ma/wps/wcm/connect/08712531-1e81-4e28-a38b-2bd9edf8e09e/CGI+2026+FR.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-08712531-1e81-4e28-a38b-2bd9edf8e09e-pM5DEs1
Cotisation minimale floor	MAD 3,000	Even with no turnover	2026	same

The base

Income over charges of the year, for the taxable activity, under accounting law as adjusted by tax law; stock at the lower of cost and market (Art. 8-I). Not deductible: fines and penalties, purchases without a regular invoice, gifts in the nature of liberality, the social solidarity contribution (Art. 11-I, III, IV), and charges above MAD 5,000 a day and MAD 50,000 a month per supplier not paid by a traceable means, with depreciation on assets so acquired (Art. 11-II). Losses carry to the fourth following year; the part from regularly booked depreciation has no time limit (Art. 12). The tax cannot be below the cotisation minimale, except for Art. 16 flat-tax companies (Art. 144-I-A). New companies are exempt for the first 36 months of operation, ending at the latest 60 months after incorporation; concession companies are excluded (Art. 144-I-C-1).

Deadlines and filing

1. Four instalments, each 25% of the last closed year's tax, before the end of the 3rd, 6th, 9th and 12th months from the year's opening (Art. 170-I). For a year opened by 31 December 2026, compute them at that year's rates (Art. 247-XXXVII-B). A company leaving a temporary exemption uses the tax or cotisation due without the exemption (Art. 170-III). A reference year under 12 months is scaled to 12 (Art. 170-II).
2. If only the floor is due, pay it once, before the end of the 3rd month (Art. 170-I).
3. A company expecting that paid instalments cover the tax may stop, by signed declaration 15 days before the next due date. If the final tax exceeds instalments by more than 10%, Art. 208 applies to the skipped amounts (Art. 170-IV).
4. File the tax result return within three months of year end, including exempt companies, with payment references, annexes and the sales statement by client (Art. 20-I). A nil or loss return also needs the signed statement explaining it (Art. 20-IV).
5. Settle any balance within the same period; an excess is credited against later instalments, then tax (Art. 170-IV).

Penalties and interest

Late or missing return (Art. 184): 5% within 30 days, 15% after, 20% on assessment, minimum MAD 500, on the tax or the cotisation minimale if higher. Late payment (Art. 208-I): 10% penalty, 5% if paid within 30 days, plus 5% for the first month and 0.50% for each further month or part. The 20% penalty applies to withheld tax under Art. 156 to 160 ter.

Cross-border points

Non-resident companies are also taxed on Art. 15 gross income for work or services for their Moroccan branches or independent persons in Morocco (Art. 5-II). Art. 16 flat-tax companies file their turnover return before 1 April and pay within a month of each receipt (Art. 20-II, 170-VI). Non-residents with no Moroccan establishment file on property and securities gains within 30 days after the month of sale and pay with that return (Art. 20-III, 170-VIII). Treaties and transfer pricing are not covered here.

Two worked examples that recompute

1. Profit MAD 5,000,000, turnover MAD 40,000,000. Tax at 20% is 1,000,000; cotisation 100,000 is lower. Next year's instalments are 250,000 each.

name: Ordinary company 2026
inputs:
  profit: 5000000
  turnover: 40000000
steps:
  - tax: profit * 0.20
  - cm: max(turnover * 0.0025, 3000)
  - due: max(tax, cm)
  - instalment: due * 0.25
expected:
  due: 1000000.00
  instalment: 250000.00

2. Decision: does a dip below MAD 100 million restore 20%? Profit was 120 million, now 90 million. The 120 million did not come from Art. 9 (I-C-1) non-current income. First year below: 35% applies, 31,500,000, because 20% needs three consecutive years below (Art. 19-I-B; Art. 247-XXXVII-A bars a lower rate through 2026). At 20% it would be 18,000,000: a difference of 13,500,000.

name: Three year test
inputs:
  profit: 90000000
steps:
  - at_35: profit * 0.35
  - at_20: profit * 0.20
  - difference: at_35 - at_20
expected:
  at_35: 31500000.00
  difference: 13500000.00

Ask the client first

1. Legal form and sector: bank or insurer?
2. Year end and date operations started and date of incorporation.
3. Net profit this year and the last three years; any non-current gains?
4. Turnover and Art. 144 base; any listed 0.15% sales?
5. Any Art. 6 status or State investment agreement?
6. Instalments paid; withholding suffered.
7. Non-resident payments or shareholders; dividend dates?

Sources

Source	URL	Read on
DGI, Code General des Impots 2026 (French); Art. 2, 3, 5, 8, 11, 12, 19, 20, 144, 170, 184, 208, 247-XXXVII, 247-XXXXVI and Finance Law 50-25 Art. 7-IV read from the PDF	https://www.tax.gov.ma/wps/wcm/connect/08712531-1e81-4e28-a38b-2bd9edf8e09e/CGI+2026+FR.pdf?MOD=AJPERES&CACHEID=ROOTWORKSPACE-08712531-1e81-4e28-a38b-2bd9edf8e09e-pM5DEs1	2026-11-01

Not yet confirmed: Art. 6 exemptions; SIMPL-IS portal steps and form number; treaty rates.