Morocco Tax Rates

Morocco is harmonizing corporate tax rates by 2026, offers strong incentives in special zones, applies progressive taxation for individuals, and maintains a broad VAT and social security system. International businesses face treaty-dependent withholding taxes but benefit from extensive treaty coverage.

Residency RuleAn individual is tax resident if they have their habitual home, center of economic interests, or continuous/discontinuous presence of more than 183 days in any 365-day period in Morocco.

Top Income Tax Rate

38%

Morocco levies progressive personal income tax on residents' worldwide income. Rates range from 0% up to MAD 30,000 to 38% on income exceeding MAD 180,000. Employment income is subject to PAYE withholding. Non-residents are taxed at 20% on Moroccan-sourced income unless a treaty provides otherwise.

0–40k MAD
0%
40–60k MAD
10%
60–80k MAD
20%
80–100k MAD
30%
100–180k MAD
34%
>180k MAD
37%

Corporate Income Tax

20%

Morocco's 2026 corporate tax reform established a unified standard rate of 20% for most companies, with 35% applying to companies with net taxable income of MAD 100 million or more. Credit institutions, banks, and insurance companies face a 40% rate. Companies in Casablanca Finance City enjoy a 0% rate for five years then 15%. Free zone companies pay 0% for five years then 15%. Export companies also benefit from reduced rates.

Africa average
27%
Global average
22.2%

VAT / Sales Tax

20%

Morocco's VAT is levied at a standard rate of 20% with reduced rates of 14%, 10%, and 7% for specific goods and services. Basic foodstuffs like bread, milk, and sugar are exempt. Financial services, education, and healthcare are also exempt. Registration is mandatory for businesses with annual turnover exceeding MAD 500,000.

Reduced Rates

Transport, butter, electricity
14%
Hotels, restaurants, petroleum products, legal & banking services
10%
Basic food items, pharmaceuticals, school supplies
7%

Capital Gains Tax

20%

Capital gains on real property are taxed at 20% with a minimum tax of 3% of the sale price. Gains on listed securities are taxed at 15%. Unlisted securities are taxed at 20%. A primary residence exemption applies for properties held more than 6 years with a sale price below MAD 4 million. Rollover relief is available for reinvestment in another primary residence.

Exemptions

  • Primary residence held for more than 6 years (up to MAD 4 million sale price)
  • Gains reinvested in another primary residence within one year
  • Gains below MAD 140,000 from listed securities

Wealth Tax Rate

0%

Morocco does not levy a general wealth tax.