In brief: Since 1 January 2026, the final corporate tax rates in Morocco are: 20% (net taxable profit < 100 M MAD), 35% (≥ 100 M MAD) and 40% (credit institutions and insurance companies). These rates are proportional: a single rate applies to the entire net taxable profit. The minimum contribution is set at 0.25% (minimum MAD 3,000). These rates result from the reform initiated by the 2023 Finance Law (No. 50-22), whose four-year progressive convergence is now complete. Use our corporate tax rate calculator to determine the rate applicable to your company.
1. Final Corporate Tax Rates Applicable from 1 January 2026
The target rates of the tax reform are fully in force for fiscal years beginning on or after 1 January 2026, as set out in the 2026 Finance Law. They are as follows:
| Company category | Corporate tax rate |
|---|---|
| Standard — net taxable profit < 100 M MAD | 20% |
| Large companies — net taxable profit ≥ 100 M MAD | 35% |
| Credit institutions, Bank Al-Maghrib, CDG, insurance and reinsurance companies | 40% |
| CFC companies and Industrial Acceleration Zones (IAZ) | 20% regardless of profit |
Exclusion from the 35% rate: companies incorporated from 1 January 2023 onwards that commit, under a convention signed with the State, to invest at least MAD 1.5 billion over a period of five years from the date of signature are excluded from the 35% rate. The investment must relate to tangible fixed assets held for at least 10 years. Public establishments and enterprises and their subsidiaries are excluded from this scheme (Article 19-I-B of the CGI).
Return to the 20% rate: where a company previously subject to the 35% rate sees its net taxable profit fall below MAD 100 million, the 20% rate only applies again if the profit remains below that threshold for three consecutive fiscal years (Article 19-I of the CGI).
Legal basis: Article 19-I of the General Tax Code (CGI), as amended by the 2023 Finance Law (No. 50-22), applicable to fiscal years beginning on or after 1 January 2026.
Proportional rate: a fundamental distinction
Since the 2022 Finance Law, Moroccan corporate tax is a proportional tax. This means that a single rate applies to the entire net taxable profit of the company, unlike the former progressive scale where each profit bracket was taxed at a different rate (as with income tax).
Practical example: a company generates a net taxable profit of MAD 5,000,000 in 2026. The applicable rate is 20% (profit < 100 M MAD). The corporate tax due is:
5,000,000 × 20% = MAD 1,000,000
Under the former progressive scale (before 2022), the calculation would have been:
- 300,000 × 10% = 30,000
- 700,000 × 20% = 140,000
- 4,000,000 × 31% = 1,240,000
- Total = MAD 1,410,000
The difference is significant: the proportional system is more advantageous for companies with profits exceeding approximately MAD 1.1 million, but less favourable for very small businesses.
2. How to Calculate Corporate Tax in 2026
The corporate tax calculation involves four steps:
Step 1: Determine the taxable profit
The taxable profit is calculated from the accounting result, adjusted for tax corrections:
Taxable profit = Accounting result + Tax add-backs − Tax deductions
Add-backs include non-deductible expenses (fines, excess donations, non-compliant depreciation, personal expenses, etc.). Deductions include exempt income (Moroccan-source dividends, capital gains reinvested under certain conditions, etc.).
Step 2: Apply the proportional rate
Apply the rate corresponding to the entire net taxable profit:
- Profit < 100 M MAD → 20%
- Profit ≥ 100 M MAD → 35%
- Credit institution / insurance → 40%
Step 3: Calculate the minimum contribution
MC = MC base × 0.25% (minimum MAD 3,000)
Step 4: Determine the tax due
Tax due = MAX (Tax at proportional rate, Minimum contribution)
If the taxable result is negative or nil, the company pays the minimum contribution (except during the first 36 months following the start of operations, and no later than 60 months after incorporation). Tax losses may be carried forward to the following four fiscal years, the portion corresponding to duly recorded depreciation being carried forward without time limit.
Example 1 — SME (profit < 100 M MAD)
A service LLC achieves the following results in 2026:
| Item | Amount (MAD) |
|---|---|
| Accounting result | 1,800,000 |
| Tax add-backs | 200,000 |
| Tax deductions | 50,000 |
| Taxable profit | 1,950,000 |
| Operating revenue (MC base) | 12,000,000 |
Corporate tax: 1,950,000 × 20% = MAD 390,000
Minimum contribution: 12,000,000 × 0.25% = MAD 30,000
Tax due = MAX (390,000; 30,000) = MAD 390,000
Corporate tax is paid in 4 quarterly provisional instalments (25% each) during the fiscal year, with a final adjustment at the annual filing. For more details, see our guide on provisional instalments.
Example 2 — Large company (profit ≥ 100 M MAD)
An industrial company generates a net taxable profit of MAD 150,000,000 in 2026:
Corporate tax: 150,000,000 × 35% = MAD 52,500,000
The 35% rate applies to the entire profit, not just the portion exceeding 100 M MAD. This is the principle of the proportional rate: once the threshold is reached, the higher rate applies to the full amount.
Warning — Threshold effect: a company whose profit rises from MAD 99 M to MAD 101 M sees its corporate tax jump from MAD 19.8 M (99 × 20%) to MAD 35.35 M (101 × 35%), an increase of +78%. This warrants careful tax planning.
3. The Minimum Contribution
The minimum contribution (MC) is the floor for corporate tax. Even where the company reports a loss, the MC is payable (unless exempt).
| Parameter | 2026 value |
|---|---|
| Rate | 0.25% (since the 2023 Finance Law) |
| Minimum amount | MAD 3,000 |
| Tax base | Turnover and other operating income (Art. 9-I-A-1° and 5°) + financial income (Art. 9-I-B-1°, 2° and 3°) + grants, subsidies and donations received (Art. 9-I-A-4° and 9-I-C-2° and 4°), excluding VAT |
| Exemption | First 36 months following the start of operations, not exceeding 60 months after incorporation (excluding public-service concession holders) |
History of the minimum contribution
| Period | MC rate |
|---|---|
| Before 2019 | 0.50% |
| 2019 (FL 2019) | 0.75% |
| 2020-2021 (FL 2020) | 0.50% |
| 2022 (FL 2022) | 0.40% |
| Since 2023 (FL 2023) | 0.25% |
The MC is a minimum tax: if the corporate tax calculated is lower than the MC, the MC is due. Since the 2016 Finance Act (Law No. 70-15), any excess of MC over corporate tax is definitively retained by the Treasury: it can be neither carried forward, offset nor refunded. The minimum contribution credit, which formerly allowed this excess to be offset against corporate tax over the following three fiscal years, was abolished for corporate tax purposes for fiscal years beginning on or after 1 January 2016 (Article 144-I-E of the CGI, which now provides for such offsetting only for personal income tax).
4. Complete History of Corporate Tax Rate Changes (2019-2026)
Moroccan corporate tax has undergone a profound overhaul over a few years. Understanding this evolution is essential for interpreting past tax assessments and planning tax obligations.
Before 2020 — PROGRESSIVE scale
Until the 2019 fiscal year, corporate tax was calculated using a progressive bracket scale, similar in logic to income tax:
| Net taxable profit bracket | Rate (2019 fiscal year) |
|---|---|
| Up to MAD 300,000 | 10% |
| From MAD 300,001 to 1,000,000 | 17.50% |
| Above MAD 1,000,000 | 31% |
(The intermediate rate, set at 20% by the 2018 Finance Act, was lowered to 17.50% by Finance Act No. 80-18 for 2019, then restored to 20% by Finance Act No. 70-19 for 2020.)
Progressive means each profit bracket was taxed at its own rate. A company with MAD 2 M in profit would pay in 2019: (300,000 × 10%) + (700,000 × 17.5%) + (1,000,000 × 31%) = MAD 462,500.
Special rates:
- 17.5%: capped scale rate applicable to export companies (after exemption), hotels on their foreign-currency revenue, offshoring, craft businesses, private education, mining companies and agricultural operations
- 15%: companies with CFC status and companies located in industrial acceleration zones (IAZ), after their exemption period
- 37%: credit institutions, insurance, Bank Al-Maghrib, CDG
Reference: Circular Note No. 730 — FL 2020
FL 2020 — Start of industrial convergence
The 2020 Finance Law launched the first step of modernisation:
- The marginal rate of 31% was reduced to 28% for companies carrying out an industrial activity, in respect of their local turnover, excluding those whose net profit is equal to or above MAD 100 M. This transitional regime is no longer in force: lowered to 26% by the 2022 Finance Act and then merged into the 2023-2026 convergence (see the FL 2023 table below), the industrial rate reached the standard rate of 20% for fiscal years beginning on or after 1 January 2026. For details of the former scale, see the history of the progressive scale
- The 17.5% capped rate (exporters, hotels on foreign-currency revenue, offshoring, crafts, private education, mining, agriculture) was raised to 20%
- The scale remained progressive: the 10% and 20% brackets continued
Reference: Circular Note No. 730 — FL 2020
FL 2022 — Elimination of progressivity
The 2022 Finance Law marked a major structural change:
- Abandonment of the progressive scale in favour of proportional rates
- Henceforth, a single rate applies to the entire profit
- The reduced industrial rate fell from 28% to 26%
- The minimum contribution decreased from 0.50% to 0.40%
The switch to proportional rates simplifies the calculation but creates threshold effects: crossing a profit limit triggers the higher rate on the entire result.
Reference: Circular Note No. 732 — FL 2022
FL 2023 — The comprehensive reform (the most significant)
The 2023 Finance Law (No. 50-22) introduced a progressive convergence over 4 fiscal years (2023-2026) towards simplified target rates. This is the most structural reform of corporate taxation in Morocco since the creation of the CGI.
Complete transitional rates table 2023-2026
| Category | Before 2023 | 2023 | 2024 | 2025 | Target 2026 |
|---|---|---|---|---|---|
| Former 10% (SME ≤ 300K) | 10% | 12.5% | 15% | 17.5% | 20% |
| Former 20% (300K-1M) | 20% | 20% | 20% | 20% | 20% |
| Former 31% (> 1M, < 100M) | 31% | 28.25% | 25.5% | 22.75% | 20% |
| Former 31% (≥ 100M) | 31% | 32% | 33% | 34% | 35% |
| Industrial 26% (< 100M) | 26% | 24.5% | 23% | 21.5% | 20% |
| CFC / IAZ (former 15%) | 15% | 16.25% | 17.5% | 18.75% | 20% |
| Credit / insurance (former 37%) | 37% | 37.75% | 38.5% | 39.25% | 40% |
Withholding tax on dividends: since the 2025 Finance Law, the rate is determined solely by the date of distribution, whatever the fiscal year the profits originate from — 12.50% for amounts distributed from 1 January 2025, 11.25% from 1 January 2026, 10% from 1 January 2027 (Art. 247-XXXVII-C, as amended by Finance Law No. 60-24).
Minimum contribution: reduced from 0.40% to 0.25% from 2023.
Reference: Circular Note No. 733 — FL 2023
FL 2024 — Neutralising capital gains on disposals when crossing the 100 M MAD threshold
The 2024 Finance Law (No. 55-23) amended Articles 19-I-B and 247-XXXVII-A of the Tax Code to introduce a derogation from the three-consecutive-year rule. Where a company records, in a given financial year, a net profit equal to or above MAD 100 million as a result of non-recurring income from disposals of fixed assets (Article 9-I-C-1°), the 35% rate applies for that financial year only.
The 20% rate therefore remains applicable in the following financial years, for as long as the net profit has not again crossed the MAD 100 million threshold.
Example. A company records, in year N, a net profit equal to or above MAD 100 million solely because of a capital gain on the disposal of a fixed asset:
- 35% for financial year N;
- 20% for financial year N+1, if its net profit falls back below the MAD 100 million threshold — without having to wait for the three consecutive years set out in Article 19-I-B.
This rule also applies to the rates provided for during the transitional period running from 1 January 2023 to 31 December 2026.
Caution — everything depends on the cause of the crossing. The derogation covers exclusively non-recurring income from disposals of fixed assets (Article 9-I-C-1°). Where the threshold is crossed through ordinary operations, or through any other non-recurring income — balancing subsidies, tax rebates and other non-recurring income under Articles 9-I-C-2° and 4° —, the three-consecutive-year rule applies and maintains the higher rate. The origin of the excess must therefore be documented precisely.
Reference: Circular Note No. 735 — FL 2024
FL 2025 — No change to corporate tax rates
The 2025 Finance Law does not modify corporate tax rates. The transitional rates prescribed by the 2023 reform continue to apply on schedule. The main provisions concern:
- Increased depreciation cap for passenger vehicles
- Group restructuring provisions
Reference: Circular Note No. 736 — FL 2025
FL 2026 — Target rates reached + adjustments
The target rates from the 2023 reform are now fully in effect as of 1 January 2026. The 2026 Finance Law also introduces the following adjustments:
- Microfinance institutions incorporated as public limited companies (SA) that have received the transfer of assets and liabilities from microfinance associations: exclusion from the 40% rate and application of the standard rate (20% or 35%) for five consecutive fiscal years from the first year of operation (Art. 19-I-C, para. 2)
- Exemption from withholding tax on sums paid for maritime chartering
Reference: Circular Note No. 737 — FL 2026
5. Special Cases and Preferential Regimes
Certain categories of companies benefit from derogatory regimes under Articles 6 and 7 of the CGI:
Export companies
- Taxation at 20% (2026 standard rate) on export revenue, with no five-year exemption (abolished by the 2020 Finance Law — Law No. 70-19)
- The transitional regime reserved for companies that carried out their first export transaction before 1 January 2020 — retention of the full exemption until the end of the five-year period — has been exhausted since fiscal year 2024: no exporting company still benefits from a five-year exemption on this basis today
Companies based in Casablanca Finance City (CFC)
- Full exemption for 5 years (60 months maximum from CFC status date)
- Then a rate of 20%, regardless of profit level
Industrial Acceleration Zones (IAZ)
- Full exemption for 5 years
- Then a rate of 20%, regardless of the 100 M MAD threshold
Hotel companies
- Full exemption for 5 years on the share of revenue earned in duly repatriated foreign currency
- Then the standard rate (20% or 35% depending on the result) on that same share
Agricultural operations
- Permanent exemption for farms with annual turnover below MAD 5,000,000
Cooperatives
- Permanent exemption for cooperatives with annual turnover (excluding VAT) below MAD 10,000,000
Outsourcing / offshoring companies
- Full exemption for the first 5 fiscal years following the start of operations
- Then the standard rate (20% or 35% depending on the result)
6. The Social Solidarity Contribution (CSS)
In addition to corporate tax, companies whose net taxable profit is equal to or exceeds MAD 1,000,000 are subject to the social solidarity contribution (CSS), extended by the 2026 Finance Law.
| Net taxable profit bracket | CSS rate |
|---|---|
| From MAD 1 million to less than 5 million | 1.5% |
| From MAD 5 million to less than 10 million | 2.5% |
| From MAD 10 million to less than 40 million | 3.5% |
| MAD 40 million and above | 5% |
The CSS is calculated on the net taxable profit and is added to corporate tax. It is not deductible from taxable income.
Example: a company with a net taxable profit of MAD 8,000,000 pays:
- Corporate tax: 8,000,000 × 20% = MAD 1,600,000
- CSS: 8,000,000 × 2.5% = MAD 200,000 (proportional rate applicable to profit in the 5M-10M bracket — NB: the CSS, like corporate tax, is proportional, not progressive)
- Total tax burden: MAD 1,800,000, i.e. an effective rate of 22.5%
7. FAQ — Frequently Asked Questions
What are the corporate tax rates applicable in 2026?
The final rates are: 20% (profit < 100 M MAD), 35% (profit ≥ 100 M MAD) and 40% (credit institutions, insurance, CDG, Bank Al-Maghrib). CFC and IAZ companies benefit from the 20% rate regardless of profit.
Is corporate tax progressive or proportional?
Corporate tax has been proportional since the 2022 Finance Law. A single rate applies to the entire net taxable profit. The former progressive bracket scale (10%, 20%, 31%) has been abolished. This should not be confused with income tax, which remains progressive (see our article on the former progressive scale).
What is the minimum contribution rate?
The minimum contribution is 0.25% of the base comprising operating revenue, financial income and grants, with a minimum of MAD 3,000. Companies are exempt during the first 36 months of activity.
When is corporate tax due?
Corporate tax is paid in 4 provisional instalments, each equal to 25% of the tax due for the last closed fiscal year — i.e. the higher of the corporate tax and the minimum contribution. For fiscal years opened from 1 January 2023 to 31 December 2026, the instalments are calculated using the rates of the current fiscal year (Art. 247-XXXVII-B). The due dates are as follows:
- 1st instalment: by the end of the 3rd month
- 2nd instalment: by the end of the 6th month
- 3rd instalment: by the end of the 9th month
- 4th instalment: by the end of the 12th month
The final adjustment occurs upon filing of the annual return, by 31 March of the following fiscal year at the latest.
What happens if my profit exceeds 100 M MAD?
The 35% rate applies to the entire net taxable profit, not just the portion exceeding 100 M MAD. It is a threshold trigger, not a bracket. However, where the threshold is crossed as a result of non-recurring income from disposals of fixed assets (Article 9-I-C-1°), the 35% rate applies for that financial year only: the 20% rate becomes applicable again from the following year if the net profit falls back below the threshold, without waiting for the three consecutive years (derogation introduced by the 2024 Finance Law in Articles 19-I-B and 247-XXXVII-A). By contrast, a crossing resulting from ordinary operations or from any other non-recurring income (balancing subsidies, tax rebates) remains subject to the three-year rule.
My profit drops back below 100 M MAD: can I return to the 20% rate?
Yes, but not immediately. Where a company has been subject to the 35% rate and its net taxable profit falls below MAD 100 million, the 20% rate only applies again if the profit remains below that threshold for three consecutive fiscal years. This rule aims to prevent frequent switching between rates and to ensure stability in tax application (Article 19-I of the CGI).
8. Links to DGI Circular Notes
The circular notes of the General Tax Directorate are the official source for interpreting tax provisions:
- Circular Note No. 730 — Finance Law 2020
- Circular Note No. 731 — Finance Law 2021
- Circular Note No. 732 — Finance Law 2022
- Circular Note No. 733 — Finance Law 2023
- Circular Note No. 735 — Finance Law 2024
- Circular Note No. 736 — Finance Law 2025
- Circular Note No. 737 — Finance Law 2026
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