Tanger Automotive City (TAC) is the Moroccan free zone dedicated to the automotive industry. It hosts the sector’s equipment manufacturers, subcontractors and logistics providers, a stone’s throw from the Renault Tanger Med plant. Are you a manufacturer or an investor looking to set up a company in Tanger Automotive City? This article first details the zone’s positioning and the tax regime of industrial acceleration zones (IAZ). It then covers the formation steps and your accounting and social obligations. Cabinet Dami & Associés, based in the heart of Tanger Free Zone, supports companies setting up in this automotive ecosystem.
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Setting up in Tanger Automotive City means joining a platform integrated into the Tanger Med ecosystem. However, it also means entering a derogatory tax and regulatory framework. Its benefits depend on strict compliance with the eligibility conditions. Specialised free zone accounting support is therefore decisive in securing this advantage from the very first financial year.
What is Tanger Automotive City?
Tanger Automotive City is an industrial acceleration zone (free zone status) specialised in automotive trades. Tanger Med Zones develops and manages it, as a subsidiary of the Tanger Med group. The zone was launched in 2013 on the industrial platform of the Tangier region. Since then, its perimeter has been extended in stages. Today, it brings together several dozen equipment manufacturers and subcontractors of the automotive industry.
A strategic logistics position
TAC’s strength lies in its location. Indeed, the zone neighbours the Renault plant at Tanger Med. It also enjoys direct access to the Tanger Med port and to Tanger Free Zone, allowing fast deliveries to Europe. This proximity makes it a preferred site for Tier 1 equipment manufacturers supplying the carmakers established in Morocco. For an overview of the three zones, see our page on the free zones of Tangier.
A dense automotive ecosystem
The zone brings together equipment manufacturers, component makers, logistics operators and service providers associated with the sector. This concentration creates a cluster effect: proximity to principals, shared logistics and a pool of skilled labour in automotive trades.
Why set up your automotive business in Tanger Automotive City?
Setting up a company in Tanger Automotive City combines industrial, logistics and tax advantages. Operationally, the immediate proximity of carmakers and the port reduces supply chain lead times and costs. On the tax side, the company benefits from the preferential regime of industrial acceleration zones.
Law No. 19-94 on free zones (now IAZ) and the General Tax Code provide for this regime. It offers significant exemptions, conditional on the export nature of the activity and on compliance with reporting obligations. A specialised chartered accountant must therefore secure the link between the industrial advantage and the tax advantage.
The tax regime of a free zone company in Tanger Automotive City
Companies established in an industrial acceleration zone, such as Tanger Automotive City, fall under a tax regime governed by the General Tax Code. Below are the key points your chartered accountant must master.
CIT exemption for the first 5 financial years
Companies operating in an industrial acceleration zone benefit from a full exemption from corporate income tax (CIT) for the first five consecutive financial years from the start of operations (source: General Tax Code). Beyond that, the applicable rate depends on each company’s situation. It turns in particular on the export nature of the activity and on whether there is local turnover (so-called “mixed” activity). That is why Cabinet Dami carries out a tailored study to determine the exact regime and rate for your case.
The point to anticipate is therefore not the rate itself, but the start date of operations. Indeed, this date triggers the count of the five financial years. It thus sets the year in which your company becomes taxable again. A delay in commissioning shifts the entire tax schedule and the cash flow that goes with it.
Withholding tax on dividends
Distributed dividends bear a 11.25% withholding tax (source: General Tax Code). However, the effective treatment may depend on the beneficiary’s residence and on any applicable double taxation treaty. This point should be checked case by case.
Minimum contribution
The minimum contribution applies at the rate of 0.25% for companies eligible for the regime (source: General Tax Code, art. 144).
VAT and flows with the local market
Export operations and operations within the zone benefit from a specific VAT regime. Sales to the taxable territory (Moroccan market) are subject to particular customs and tax rules: this is a central point of vigilance so as not to jeopardise the zone status.
These elements are provided for guidance only, according to the regulations in force. The legal framework (General Tax Code, Framework Law No. 03-22 on the investment charter and its implementing texts) changes regularly. For an analysis tailored to your project, consult the official texts or contact the firm.
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How to set up a company in Tanger Automotive City? The steps
Setting up a company in Tanger Automotive City follows a structured path. Cabinet Dami & Associés handles it from start to finish.
| # | Step | Counterpart | Document produced |
|---|---|---|---|
| 1 | Feasibility study and choice of legal form | Cabinet Dami & Associés | IAZ regime eligibility memo + structure recommendation (SARL, SA, branch) |
| 2 | Establishment agreement and zone approval | Tanger Med Zones, developer-manager | Establishment agreement and land occupancy title |
| 3 | Registration and formalities | CRI Tanger-Tétouan-Al Hoceïma, DGI, CNSS | Negative certificate, registered articles of association, trade register, tax identifier, CNSS number |
| 4 | Accounting and payroll set-up | Cabinet Dami & Associés | Configured chart of accounts, tax calendar, payroll and CNSS filing set-up |
Timelines depend on land availability, the nature of the project and the completeness of the file. The firm therefore draws up a provisional schedule from the feasibility study onwards. For the corporate side, see our free zone company formation service.
Accounting, tax and social obligations in Tanger Automotive City
Free zone status does not exempt you from obligations. First, a company established in Tanger Automotive City must keep regular accounts in line with Moroccan standards. It must also file its annual tax and statistical returns. In addition, it must prepare payroll and CNSS and AMO filings in compliance with the Labour Code (Law No. 65-99) — see our details on employment contracts in free zones. Finally, it must be able to demonstrate compliance with the regime’s conditions (eligible activity, export destination).
For an automotive equipment manufacturer employing a large workforce, managing payroll and social contributions is a particularly sensitive area. Indeed, calculation errors, incorrect affiliation or late filing can be costly. Likewise, foreign currency accounting and exchange regulations call for specific vigilance. A chartered accountant specialised in free zones handles precisely these tasks — see also our strategies on free zone taxation in Morocco.
Need advice on this topic? Cabinet Dami & Associés, chartered accountants with offices in Tangier and Casablanca, will reply within 24 hours.
How Cabinet Dami & Associés supports you in Tanger Automotive City
Cabinet Dami & Associés is a chartered accounting firm specialised in Moroccan free zones, based in Tanger Free Zone. We support manufacturers and investors wishing to set up in Tanger Automotive City, Tanger Free Zone or the Mohammed VI Tanger Tech City. Our support runs from the feasibility study to ongoing accounting follow-up.
Our proximity to the Tanger Med ecosystem and our specialisation in IAZ enable us to provide practical support: company formation, bookkeeping, tax returns, CNSS payroll and ongoing advice. To discuss your project in Tanger Automotive City, contact our free zone chartered accountant in Tangier: +212 539-39-81-18.
FAQ — Tanger Automotive City
What is Tanger Automotive City?
Tanger Automotive City (TAC) is an industrial acceleration zone (free zone) dedicated to the automotive industry. Tanger Med Zones, a subsidiary of the Tanger Med group, develops and manages it. It brings together equipment manufacturers, subcontractors and logistics operators close to the Renault Tanger Med plant and the Tanger Med port.
What tax benefits does a company get in Tanger Automotive City?
A company in an industrial acceleration zone benefits from a full corporate income tax exemption for the first five consecutive financial years. Beyond that, the applicable rate depends on each company’s situation. It turns in particular on the export nature of the activity and on whether there is local turnover. In addition, there is the professional tax exemption for 15 years, a specific VAT regime and a suspensive customs regime. These benefits are conditional on compliance with the regime’s rules, which a chartered accountant secures.
What withholding tax applies to dividends?
Distributed dividends bear a 11.25% withholding tax in 2026 (source: General Tax Code). The effective treatment may depend on the beneficiary’s residence and on any applicable double taxation treaty: this point is examined on a case-by-case basis.
What activities can be carried out in Tanger Automotive City?
The zone is dedicated to automotive trades: manufacturing of components and equipment, wiring, stamping, plastic injection, seats, on-board electronics, subcontracting, logistics and associated services, mainly export-oriented.
How do you set up a company in Tanger Automotive City?
First, the feasibility study and choice of legal form. Next, the establishment agreement with Tanger Med Zones. Then, registration and formalities. Finally, the accounting and payroll set-up. A specialised firm handles the entire process.
Does Cabinet Dami operate in Tanger Automotive City?
Yes. Based in Tanger Free Zone, Cabinet Dami & Associés supports companies in Tanger Automotive City and the other free zones of Tangier. Our services cover accounting, tax, payroll and advice.
The information in this article is provided for guidance only and may change as laws and regulations evolve. For an analysis tailored to your situation, contact Cabinet Dami & Associés — Tanger Free Zone: +212 539-39-81-18.
