Corporate income tax in Morocco in 2026 follows the target scale introduced by the 2023 Finance Act reform, whose gradual convergence is completed this year. Three rates structure the regime under Article 19 of the General Tax Code: 20% as the standard rate, 35% for companies whose net profit reaches MAD 100 million, 40% for credit institutions and insurance companies. Companies in industrial acceleration zones and service companies with Casablanca Finance City status are expressly excluded from the 35% rate. This article details the scale, the scope, withholding taxes, the minimum contribution and filing obligations.
In brief. CIT 2026 in Morocco (Art. 19 General Tax Code): 20% standard rate · 35% if net profit ≥ MAD 100 million (excluding IAZ, CFC and investment agreements ≥ MAD 1.5 billion) · 40% for banks, Bank Al-Maghrib, CDG and insurance companies · withholding tax of 11.25% on dividends and 20% on fixed-income investment products · minimum contribution of 0.25% (Art. 144) · tax return within 3 months of the year-end (Art. 20), 4 provisional instalments (Art. 170).
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Who is subject to corporate income tax in Morocco?
CIT applies as of right to companies limited by shares (SA, SARL, SAS), to public establishments and other legal entities carrying on a profit-making activity, to funds created by law and to establishments of non-resident companies (Art. 2 General Tax Code). Partnerships (SNC, limited partnerships) made up solely of individuals fall under personal income tax, unless they opt for CIT. A branch of a foreign company established in Morocco is liable for CIT on the results of its Moroccan activity.
The territoriality principle (Art. 5 General Tax Code) provides that tax is levied on profits and income relating to assets held, activities carried on and profit-making transactions conducted in Morocco, as well as those for which the right to tax is allocated to Morocco by a tax treaty. This principle is the basis for the taxation of free zone companies: they are Moroccan, taxable in Morocco, and benefit from a derogating regime provided for in Article 6.
The 2026 CIT scale: the rates under Article 19
| Rate | Scope (Art. 19-I General Tax Code) |
|---|---|
| 20% | Standard rate, applicable to all companies not covered by the cases below |
| 35% | Companies whose net profit is equal to or greater than MAD 100,000,000, excluding: (1) service companies with Casablanca Finance City status; (2) companies operating in industrial acceleration zones (Art. 6-II-B-8°); (3) companies incorporated on or after 1 January 2023 that undertake, under an agreement with the State, to invest at least MAD 1.5 billion in tangible fixed assets over 5 years and to hold them for 10 years |
| 40% | Credit institutions and similar bodies, Bank Al-Maghrib, Caisse de dépôt et de gestion, insurance and reinsurance companies (including Takaful) |
| 8% | Flat-rate tax, on the amount of contracts excl. VAT, for non-resident companies awarded works, construction or assembly contracts that have opted for this regime (Art. 19-III) |
Two application rules deserve attention. First, the MAD 100 million threshold is assessed over three financial years: where net profit is below MAD 100 million, the 20% rate applies only if it remains below that amount for three consecutive financial years. Second, crossing the threshold is disregarded when it results from non-current income referred to in Article 9-I-C-1° — an exceptional capital gain on disposal does not push a company into the 35% rate.
These are the rates of the target regime; the 2023 Finance Act had provided, in Article 247-XXXVII of the General Tax Code, for a gradual convergence over the 2023 to 2025 financial years, with the target rates applying in full from 2026. For earlier financial years, the applicable rate depends on the year in which the financial year opened and on the level of profit — a point to check on every tax return still being adjusted.
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The special case of industrial acceleration zones
Companies established in an industrial acceleration zone — Tanger Free Zone, Tanger Automotive City, Tanger Tech, Atlantic Free Zone, Midparc — fall under Article 6-II-B-8° of the General Tax Code: full CIT exemption for the first five consecutive financial years from the date operations begin, then taxation according to the company’s situation. Article 19 expressly excludes them from the 35% rate, whatever the level of profit.
Two practical consequences for a Tangier company. The first: the starting point of the five financial years is the date operations begin, which must be documented. The second: at the end of the exemption, the minimum contribution under Article 144 once again becomes the floor of taxation, calculated on turnover and not on profit. The regime is detailed in our feature on IAZ tax benefits and our analysis of the end of the CIT exemption in free zones.
Withholding taxes
Article 19-IV sets the rates of CIT withheld at source, which apply at the time of payment and are either final or creditable depending on the case:
| Rate | Income concerned |
|---|---|
| 5% | Remuneration referred to in Art. 15 bis, excl. VAT, paid by the State, local authorities and public establishments and enterprises to legal entities subject to CIT |
| 10% | Gross income excl. VAT received by non-residents (Art. 15); income from shares, equity interests and similar income (Art. 13) — dividends, subject to the transitional provisions of Art. 247-XXXVII-C |
| 20% | Fixed-income investment products (Art. 14) and income from Sukuk certificates (Art. 14 bis), excl. VAT |
For dividends distributed to a non-resident shareholder, the 11.25% withholding applies subject to international tax treaties, which may provide for a lower rate: the shareholder’s tax residence certificate is the condition for applying the treaty rate. We have detailed the mechanism in our articles on dividend repatriation from free zones and double taxation treaties.
The minimum contribution: the CIT floor
Whatever its result, a company subject to CIT cannot pay less than the minimum contribution under Article 144: 0.25% of turnover excl. VAT, other operating income, financial income and subsidies, with a floor of MAD 3,000. Newly formed companies are exempt for their first 36 months of operation, capped at 60 months after incorporation. The full mechanism is explained in our article on the minimum contribution in Morocco.
Calendar: instalments, filing, payment
| Obligation | Deadline | Reference |
|---|---|---|
| Provisional instalments | Four instalments of 25% of the previous year’s tax, before the end of the 3rd, 6th, 9th and 12th months of the financial year | Art. 170 General Tax Code |
| Tax return | Within 3 months of the financial year-end | Art. 20 General Tax Code |
| Adjustment (balance due or excess) | With the tax return; excess instalments are offset against subsequent instalments | Art. 170 General Tax Code |
| Withholding taxes | Payment in the month following the month in which the income was paid | Art. 171 General Tax Code |
A company that expects its instalments to exceed the tax due may, subject to conditions, apply to be released from paying the remaining instalments; an underestimate exposes it to surcharges on the difference. Returns and payments are made electronically on the portal of the Directorate General of Taxes (DGI).
Taxable result: what is deducted, what is added back
The CIT base is the taxable result, obtained from the accounting result adjusted for the add-backs and deductions provided for in Articles 8 to 12 of the General Tax Code. Among the most closely audited items: non-deductible expenses (fines, penalties, gratuitous payments), gifts above the thresholds, non-compliant depreciation, unjustified provisions, interest on shareholder current accounts above the permitted rate and cash payments exceeding the legal thresholds. The tax loss for a financial year can be carried forward to subsequent years under the conditions of Article 12 — the portion relating to depreciation without time limit, the remainder within a limit of four financial years.
For a free zone company, the question of the tax base is compounded by that of qualification: income falling outside the scope of the exemption must be isolated and taxed under standard law. That alone is reason enough to keep cost accounting from the first financial year.
Common mistakes
Applying 20% to a free zone company that is still exempt or, conversely, believing the exemption is permanent. Overlooking the three-year rule around the MAD 100 million threshold. Failing to declare withholding taxes on payments to non-resident service providers. Underestimating instalments after an exceptional year and incurring surcharges. Confusing accounting result and taxable result: add-backs are the leading source of reassessment in a tax audit.
FAQ — Corporate tax Morocco 2026
What is the CIT rate in Morocco in 2026?
The standard rate is 20%. It is raised to 35% for companies whose net profit reaches MAD 100 million (excluding IAZ, CFC and major investment agreements) and to 40% for credit institutions and insurance companies. Source: Art. 19 General Tax Code.
Does a free zone company pay CIT?
It is fully exempt for its first five consecutive financial years from the start of operations, then taxed according to its situation. It is expressly excluded from the 35% rate.
What is the withholding tax on dividends in 2026?
11.25% on income from shares and equity interests (Art. 19-IV-B), subject to the transitional provisions and to tax treaties for non-resident recipients.
When is CIT filed and paid?
Four provisional instalments during the financial year (Art. 170), tax return within three months of the year-end (Art. 20), with adjustment at that time.
Does a loss-making company pay any tax?
Yes: the minimum contribution under Article 144, i.e. 0.25% of income with a floor of MAD 3,000, unless the start-up exemption applies (first 36 months of operation).
Conclusion
The 2026 CIT scale is settled: 20%, 35%, 40%, with a clear exclusion of free zone companies from the top rate. What makes the difference in the actual tax burden is not the rate but control of the tax base, the calendar and, in a free zone, the qualification of income. In Tangier, a free zone chartered accountant in Tangier secures these three points from the first financial year; our tax and social advisory team works under both regimes.
Official source: General Tax Code, Articles 2, 5, 6, 8 to 12, 13 to 16, 19, 20, 144, 170, 171 and 247-XXXVII (Directorate General of Taxes); Finance Act No. 50-22 for the 2023 budget year.
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.
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