Corporate Income Tax in Morocco 2026: Rates, Calculation, and Specific Regimes for Your Business

Corporate Income Tax (CIT) is a central pillar of Moroccan taxation. This article provides a comprehensive overview of the key provisions of the General Tax Code (CGI) relating to CIT, incorporating updates for 2026. Understanding these mechanisms is crucial for any company operating in Morocco.

What is Corporate Income Tax (CIT) in Morocco?

CIT is a direct tax applied to the profits made by companies and other legal entities in Morocco. It primarily concerns SARL and SA companies, although some partnerships may opt for this regime. It is a self-assessed tax, which means each company must file an annual tax return and spontaneously pay the tax due.

Scope of Application of CIT: Territoriality and Taxable Persons

The scope of CIT is defined by two essential criteria:

• Territoriality: CIT applies to companies with their registered office in Morocco. It can also apply to foreign companies if they have a permanent establishment (such as a branch) or carry out a lucrative activity in Morocco for which taxation is attributed to Morocco by an international tax convention.
• Taxable Persons: Companies of all forms, public establishments and other legal entities carrying out lucrative operations, associations and similar organizations for their lucrative activities, and branches of non-resident companies are compulsorily subject to CIT. Certain partnerships may choose to be subject to CIT by irrevocable option.

Determining the Taxable Base for CIT

CIT is calculated on the company's taxable profit, determined according to Moroccan accounting rules. Taxable profit represents the excess of income over expenses for the financial year.

Deductible and Non-Deductible Expenses

Only expenses incurred for the purposes of the taxable activity are deductible. The transition from accounting profit to taxable profit allows for the reintegration of non-deductible expenses, such as:

• Expenses not related to operations.
• Fines, penalties, and surcharges.
• Expenses not justified by regular supporting documents.
• Gratuities.
• Certain expenses with limited deductibility, such as depreciation of passenger vehicles (ceiling raised to 400,000 MAD including VAT) or cash payments exceeding 5,000 MAD per day and 50,000 MAD per month per supplier.

In the event of a deficit, tax losses are carried forward for four financial years, with the exception of depreciation, which can be carried forward indefinitely.

Corporate Income Tax Rates in Morocco (Applicable from 2026)

The Finance Law 2023 established a convergence of CIT rates, fully completed by January 1, 2026. The standard rates are now:

• 20 % for companies whose net taxable profit is less than 100,000,000 MAD.
• 35 % for companies whose net taxable profit is equal to or greater than 100,000,000 MAD.
• 40 % for credit institutions and similar bodies, Bank Al-Maghrib, the CDG, and insurance and reinsurance companies.

Specific Tax Regimes

The CGI provides for specific regimes for certain activities:

• Temporary 5-Year Exemption: Some companies benefit from a total exemption for the first 5 financial years, followed by a rate of 20 %. This includes hotels (for the portion of turnover repatriated in foreign currency), offshoring companies, and certain industrial companies. Note that if the profit exceeds 100 M MAD after the exemption, the 35 % rate applies (with exceptions).
• Casablanca Finance City (CFC) and Industrial Acceleration Zones (ZAI): These companies benefit from a total exemption for 5 years, then a reduced rate that will converge to 20 % from 2026, and are excluded from the 35 % rate even if their profit exceeds 100 M MAD.
• Investment Agreements: Companies committing to invest at least 1.5 billion MAD over five years retain a permanent rate of 20 %, regardless of their profit (under conditions).

For an in-depth analysis of your tax situation or for any questions concerning statutory modifications related to your regime, do not hesitate to consult our experts in legal advice & dispute resolution.

The Minimum Contribution (CM)

The Minimum Contribution is a lump-sum tax amount due even in the event of a deficit. It is equal to 0.25 % of the CM base (turnover, financial products, subsidies, excluding VAT), with a minimum of 3,000 MAD. The tax due is the higher of the calculated CIT and the CM. Any CM surplus over CIT is neither carried forward nor offset. Companies, with the exception of public service concessionaires, are exempt from the CM during the first 36 months of their operation, provided this period does not exceed 60 months after their company formation date.

CIT Payment Procedures

CIT payment is made spontaneously through four quarterly provisional installments, calculated based on the tax due for the previous year. An adjustment is made if the final CIT is greater than the installments paid. In the event of an excess, it is automatically offset against installments for subsequent financial years. CIT declarations must be submitted electronically via the DGI portal.

Rigorous management of your taxation is essential. At iHub, we support you with all your obligations, including accounting services and optimizing your business plan to anticipate tax liabilities. Do not hesitate to contact us for personalized support and to ensure optimal tax compliance in Morocco.