In brief: The Moroccan General Tax Code provides numerous corporate tax exemptions, both permanent (cooperatives with turnover < 5 million MAD, non-profits, UCITS) and temporary (ZAI and CFC: 5 years full exemption, hospitality in foreign currency: 5 years, industrial companies: 5 years). Art. 6 of the CGI is the legal basis. After the exemption period, a 20% rate generally applies. The 2026 Finance Act extended the exemption to microfinance institutions.
Overview of Corporate Tax Exemptions (Art. 6)
Art. 6 of the CGI organizes exemptions into two broad categories: permanent exemptions (applying without time limit) and temporary exemptions (applying for a set period, after which the standard or reduced rate takes over).
Permanent Exemptions (Art. 6-I-A)
Cooperatives (Turnover < 5 Million MAD)
Cooperatives and their unions are fully exempt from corporate tax when their annual turnover is below 5,000,000 MAD (excluding VAT). Above this threshold, only agricultural activities remain exempt.
Non-Profit Organizations
Associations recognized as being of public interest, foundations, mutual societies and similar bodies are exempt from corporate tax on activities consistent with their statutory purpose. Incidental commercial activities remain taxable.
UCITS and Investment Funds
Undertakings for Collective Investment in Transferable Securities (UCITS/OPCVM), securitization funds (FPCT), real estate investment trusts (OPCI) and approved investment funds are permanently exempt. This avoids double taxation, as income is taxed at unit-holder level.
Agricultural Operators
Agricultural operators with annual turnover below 5 million MAD benefit from a permanent exemption, supporting the agricultural sector under the Green Morocco and Green Generation plans.
Temporary Exemptions (Art. 6-I-B and II)
Industrial Acceleration Zones — ZAI (Formerly Free Zones)
Companies established in Industrial Acceleration Zones benefit from a preferential tax regime:
- Full corporate tax exemption for the first 5 fiscal years from the date of commencement
- Reduced rate of 20% thereafter, regardless of net profit level
ZAIs include zones in Tangier (TFZ, Renault), Kenitra (Atlantic Free Zone), Casablanca and other integrated industrial platforms.
Casablanca Finance City — CFC
Companies with CFC status benefit from the same regime:
- Full corporate tax exemption for the first 5 years
- Reduced rate of 20% thereafter
CFC status covers financial services companies, regional headquarters, holding companies, professional service providers (audit, advisory, legal) and fintech firms operating primarily with foreign clients.
Hospitality & Tourism (Foreign Currency Revenue)
Hotel establishments generating all or part of their turnover in foreign currency benefit from:
- Full corporate tax exemption for 5 years on the foreign currency portion of revenue
- Reduced rate of 20% thereafter
This exemption aims to enhance Morocco’s appeal as an international tourism destination.
Industrial Companies
Companies engaged in industrial activity (processing raw materials or semi-finished products) benefit from:
- Full corporate tax exemption for the first 5 fiscal years
- 20% rate thereafter
This exemption applies to companies whose main activity is industrial, excluding mining and hydrocarbons.
Sports Companies
Sports companies established under Law No. 30-09 are exempt from corporate tax for the first 5 fiscal years from the date of incorporation.
Microfinance Exemption (Finance Act 2026)
The 2026 Finance Act introduced a corporate tax exemption for licensed microfinance institutions, supporting financial inclusion and the development of very small enterprises.
IPO Relief (Art. 6-II-C)
Companies that list on the stock exchange through a public capital opening benefit from a corporate tax reduction:
| Capital opened to public | CT reduction | Duration |
|---|---|---|
| Opening ≥ 20% of capital | 25% | 3 years |
| Opening ≥ 40% of capital | 50% | 3 years |
The reduction applies to the corporate tax computed on the profit of each of the three fiscal years following the IPO.
Investment Charter 2022 (Law No. 03-22)
The new investment charter, adopted in 2022, provides an investment support scheme including:
- Investment premiums: direct subsidies calculated as a percentage of the investment amount
- Sectoral and territorial premiums: top-ups for investments in underserved regions or priority sectors
- Registration duty exemption on real estate acquisitions related to the investment project
- Conventional tax benefits: projects exceeding 1.5 billion MAD may negotiate reduced CT rates with the State
For guidance on identifying applicable exemptions and structuring your investment project, our tax advisory team assists you with administrative procedures.
What Happens After the Exemption Period?
Upon expiry of the temporary exemption, companies are taxed at the 20% rate (if net profit < 100 million MAD). This reduced rate applies permanently for ZAI and CFC entities. For other companies, the standard CT rate applies normally.
The minimum contribution does not apply during the full exemption period. However, it applies from the first fiscal year at the reduced rate.
Frequently Asked Questions
Can a newly formed SARL combine multiple exemptions?
No. The CGI prohibits combining exemptions. The company must opt for the most advantageous regime. For example, an industrial company located in a ZAI benefits from the ZAI regime but cannot also claim the standard industrial exemption.
Does the ZAI exemption cover the minimum contribution?
Yes. During the full exemption period (5 years), the company is exempt from both corporate tax and the minimum contribution. From the 6th year onward, the minimum contribution applies.
Is CFC status available to startups?
Yes, provided eligibility criteria are met (internationally oriented activity, financial or professional services). Fintech companies can obtain CFC status. See also our article on the startup tax regime for other incentives.
Legal references:
- General Tax Code 2026 (PDF) — Art. 6 (CT exemptions), Art. 19-I (CT rates), Art. 144 (minimum contribution)
- Law No. 03-22 — Investment Charter — Investment support schemes
- CFC — Casablanca Finance City — CFC status conditions
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Want to optimize your tax position through CT exemptions? Contact Upsilon Consulting, a chartered accounting firm in Casablanca, for an eligibility assessment.
