Companies authorised to operate in a free zone in Morocco — today known as an Industrial Acceleration Zone (ZAI) — benefit from a full exemption from professional tax during their first fifteen (15) years of operation. This is provided by Article 6-II-2° of Law No. 47-06 on the taxation of local authorities. But professional tax in Morocco’s free zones goes beyond this exemption: calculation rules after the 15-year period, capping of the tax base, the special case of Tangier, interaction with the municipal services tax… Here is the complete 2026 overview, prepared by Cabinet Dami & Associés, present on site at Tanger Free Zone.
Professional tax in brief: who is concerned?
Professional tax (formerly the “patente”) is a local tax governed by Dahir No. 1-07-195 promulgating Law No. 47-06 on the taxation of local authorities. It is due each year by any individual or legal entity carrying out a professional activity in Morocco, at the place where the business premises are located (Article 8).
It is based on the gross annual rental value of the premises, land, fittings, equipment and tools used for the activity (Article 7). For industrial establishments, this rental value cannot be lower than 3% of the cost price of the land, buildings, fittings, equipment and tools — including assets held under leasing.
The 15-year exemption in free zones (ZAI): the rule
Article 6-II-2° of Law 47-06 grants a full temporary exemption from professional tax during the first fifteen (15) years of operation to companies authorised to operate in the export free zones governed by Law No. 19-94 — renamed “Industrial Acceleration Zones” by the 2020 Finance Law — for the activities listed in Article 3 of that law.
This period runs from the start of operations, not from the company’s incorporation date. The exemption covers the authorised industrial and service activities carried out within the zone: it is one of the major advantages of the regime, alongside the reduced corporate tax and VAT exemptions (see our guide to free zone tax benefits in Morocco).
Article 6-II-3° extends the same 15-year exemption to the Tangier-Mediterranean Special Agency (TMSA) and to companies involved in the development and operation of the Tanger Méditerranée special development zone (Decree-Law No. 2-02-644), which set up in the free zones of this perimeter.
What about the 5-year exemption for new activities?
Do not confuse the two: Article 6-II-1° of the same law exempts any newly created professional activity for 5 years from the year operations begin, anywhere in Morocco. This ordinary-law regime does not apply to changes of operator or transfers of activity, and notably excludes credit institutions, insurance companies and real estate agencies.
For a company established in an Industrial Acceleration Zone, it is the specific 15-year regime that applies to authorised activities — the five-year ordinary regime remains useful for comparing setup scenarios outside the zones (see our comparison free zone vs standard company).
After the exemption: base, cap and rates
- Base: rental value of the premises and means of production, with the 3% floor of the cost price for industrial establishments (Article 7);
- Cap (Article 6-I-A-32°): the portion of the cost price exceeding MAD 50 million excluding tax (land, buildings, fittings, equipment and tools acquired since 1 January 2001 by companies producing goods and services) is exempt — assets already exempt do not enter into this cap calculation;
- Rates (Article 9): 10% (class 3), 20% (class 2) or 30% (class 1) of the rental value depending on the activity class, with a minimum duty of MAD 300 to 1,200 in urban municipalities;
- Assessment: the tax is assessed by way of a tax roll and due for the full year based on the facts existing in January (Articles 8 and 10).
Worked example (illustration, to be refined according to your activity class): an industrial unit whose cost price of land, buildings, fittings, equipment and tools amounts to MAD 20 million has a floor rental value of 3% × 20,000,000 = MAD 600,000. Classified in class 2 (20% rate), its theoretical annual professional tax after the exemption comes to MAD 120,000. Classification in one of the three classes depends on the nature of the activity, according to the nomenclature annexed to the law: it must be checked case by case and weighs heavily in the calculation — hence the value of a review before the end of the exemption period.
Anticipating this deadline is part of a complete tax strategy for your setup — just like the end of the corporate tax exemption (see our article on the end of the IS exemption in free zones).
The case of Tangier: a unique combination of advantages
Tangier concentrates most of the Kingdom’s Industrial Acceleration Zones: Tanger Free Zone (TFZ), Tanger Automotive City (TAC), the Tanger Med port platform and the Mohammed VI Tanger Tech City. A company setting up there benefits from the 15-year exemption described above.
An historical particularity is added to this: Article 6-I-B of Law 47-06 provides a permanent 50% reduction of professional tax for taxpayers having their tax domicile or head office in the former province of Tangier, for the activity mainly carried out there. In practice, even a Tangier-based structure located outside a free zone sees its professional tax halved after its exemption periods.
The choice of zone (TFZ, TAC, Tanger Med) and of the appropriate status deserves a case-by-case analysis: our team based on site supports investors — see our Tangier free zones page and your free zone accountant in Morocco.
Watch out for the municipal services tax (TSC)
The municipal services tax (10.50% of the rental value within the urban perimeter, 6.50% in peripheral areas) follows a different logic. Article 34 of Law 47-06 only exempts taxpayers benefiting from a permanent exemption from professional tax or housing tax. Yet the “free zone” exemption is temporary (15 years): on a strict reading of the text, the TSC therefore remains due by companies in ZAI during their professional tax exemption period. This technical point, often overlooked in business plans, should be secured with your advisor before setting up.
Practical obligations to remember
Even when exempt, a free zone company must register for professional tax (registration on the tax roll is in fact a prerequisite for certain formalities, the TP identifier being among the references requested by administrations). Any significant change in the taxable elements (extension, acquisition of equipment, change of use) must be declared within 45 days (Article 13).
Two timing rules deserve attention: the tax is due for the full year based on the facts existing in January, and extensions carried out during operations (land, buildings, new equipment) also benefit from the five-year exemption before entering the taxable base (Articles 6-II-1° and 8). If the activity ceases during the year, the tax remains in principle due for the full year, except in specific cases provided by law (death, judicial liquidation, expropriation).
Monitoring these obligations is part of the company’s overall accounting — see our tax & social advisory services.
FAQ — Professional tax in Morocco’s free zones
How long is the professional tax exemption in a free zone?
Fifteen (15) years from the start of operations, for authorised activities carried out in an Industrial Acceleration Zone (Article 6-II-2° of Law 47-06).
What happens after the 15 years of exemption?
The tax becomes due under ordinary rules: rental value (minimum 3% of the cost price for industrial establishments), rates of 10%, 20% or 30% depending on the activity class, with the base capped above MAD 50 million (excl. tax) of investment.
Does a company based in Tangier outside a free zone pay professional tax in full?
Taxpayers domiciled in the former province of Tangier benefit from a permanent 50% reduction of the tax for their main activity carried out there (Article 6-I-B of Law 47-06).
Is the municipal services tax due in a free zone?
On a strict reading of Article 34 of Law 47-06, yes: the TSC exemption only benefits taxpayers with a permanent professional tax exemption, whereas the free zone exemption is temporary. Have this point validated for your situation.
Can the 5-year exemption for new activities be combined with the 15-year one?
No: in an Industrial Acceleration Zone, the specific 15-year regime applies to authorised activities. The five-year exemption of Article 6-II-1° is the ordinary-law regime applicable outside the zones.
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.
