Annual Accounting and Reporting Obligations in a Morocco Free Zone
Being exempt from corporate income tax does not relieve a company of its obligations: accounting obligations in a free zone in Morocco remain in full. A company in an Industrial Acceleration Zone (ZAI) must keep proper accounts, produce its financial statements and meet a precise filing calendar — under penalty of sanctions, even during the exemption period. This article summarises the annual accounting and reporting obligations and their timeline, to stay compliant throughout the year.
Accounting: the basis of compliance
The first of the accounting obligations in a free zone is keeping accounts in line with the Moroccan chart of accounts. The company records all its operations, tracks its flows — notably in foreign currency for export activities — and prepares its annual financial statements each year: balance sheet, profit and loss account, and statement of management balances. These accounts support all filings and form the first line of defence in the event of an audit. To get organised from the start, engaging a specialised free zone accounting firm is strongly advisable.
The income (IS) return
Even when exempt, the free zone company must file its tax return. This is due within three months of the financial year-end — i.e. 31 March for a year ending 31 December — via electronic filing through the tax administration portal (SIMPL). The IS exemption removes neither the obligation to file nor the obligation to justify eligibility for the regime. After the five-year exemption, when the company moves to the a corporate income tax rate that depends on the company’s situation, IS payment by instalments is added — a point we develop in our article on the end of the IS exemption in a free zone.
VAT returns
VAT obligations depend on turnover. The monthly regime applies to companies whose annual turnover reaches or exceeds MAD 1,000,000: the return is filed before the end of the month following the period concerned. The quarterly regime concerns companies below this threshold, with a return before the end of the month following the calendar quarter. Electronic filing via the SIMPL portal is mandatory. VAT treatment in a free zone has specific features linked to the exemptions: it must be monitored rigorously.
Social and payroll filings
A company employing staff has additional obligations: monthly filings with the CNSS, and withholding of income tax (IR) on salaries. Added to this is the annual declaration of salaries and wages paid during the previous year, to be filed before 1 March of the following year. This area is closely tied to the tax and social advisory we provide.
Summary annual calendar
| Deadline | Obligation |
|---|---|
| Monthly | VAT (if turnover ≥ MAD 1M), CNSS filings, payroll IR |
| Quarterly | VAT (if turnover < MAD 1M), IS instalments (after exemption) |
| Before 1 March | Annual declaration of salaries and wages |
| Within 3 months of year-end (31 March for a calendar year) | Income (IS) return |
Indicative calendar: exact dates depend on the financial year-end and the provisions in force. To be confirmed each year.
How Cabinet Dami & Associés supports you
Meeting the accounting obligations in a free zone requires rigorous organisation and monitoring of the filing calendar throughout the year. Since 1991, Cabinet Dami & Associés keeps the accounts, prepares the financial statements and handles all tax and social filings for companies established in a free zone, in Casablanca and Tangier Free Zone. To secure your compliance, contact our experts.
The corporate income tax (IS) rate applicable after the exemption period depends on each company’s situation — in particular whether the activity is export-oriented and whether there is local turnover (a so-called “mixed” activity). Cabinet Dami carries out a tailored study to determine the regime and rate that apply to your specific case.
FAQ — Accounting and reporting obligations in a free zone
Does an IS-exempt company still have to file?
Yes. The exemption concerns the payment of IS, not the filing obligation. The income return remains due within three months of the financial year-end.
When is the income return due?
Within three months of the financial year-end, i.e. 31 March for a year ending 31 December, via electronic filing through SIMPL.
How often are VAT returns due?
Monthly if annual turnover reaches or exceeds MAD 1,000,000, quarterly below that. Electronic filing is mandatory.
When is the annual salaries declaration due?
The declaration of salaries and wages paid the previous year is due before 1 March of the following year.
Conclusion
Accounting obligations in a free zone in Morocco are full, including during the IS exemption. Keeping compliant accounts and meeting the filing calendar is the condition for lasting compliance and for preserving the benefits. For year-round support, talk to the experts at Cabinet Dami & Associés.
Official source: General Tax Directorate — SIMPL portal.
Further reading: accounting firm free zone Morocco.
The tax and regulatory information presented in this article reflects the state of the law at the time of writing (June 2026) and is subject to change, in particular through future finance laws. It is provided for information purposes only and does not constitute personalised advice. For an up-to-date analysis tailored to your situation, contact Cabinet Dami & Associés.
Related reading : accounting on the liquidation of a free-zone company.
