Corporate Tax Exemptions in Morocco 2026: Who Qualifies?

Key takeaways: In Morocco, the corporate tax exemption is not a welcome gift handed to every new company — that’s a myth. The 5-year exemption does exist, but it is reserved for specific activities listed in article 6 of the General Tax Code: industry, service outsourcing, industrial acceleration zones (ZAI), CFC status, hospitality in foreign currency, and sports companies. For everyone else, what is genuinely general is the exemption from the minimum contribution during the first 36 months.

The “5 years tax-free” myth

It’s one of the most repeated lines out there: “In Morocco, when you set up your company, you pay no tax for 5 years.” It’s false — at least as a general rule. A standard trading or services company is liable to corporate tax from its very first profitable year.

So where does the confusion come from? From mixing up two different mechanisms:

• The exemption from the minimum contribution for 36 months (article 144-I-C-1° of the CGI). That one does apply to every new company, except public-service concession companies, and ceases at the end of the 60 months following incorporation. But it only waives the minimum tax — 0.25% of turnover, other operating income, financial income and subsidies received — and not the corporate tax on profit.
• The full 5-year corporate tax exemption (article 6-II-B), which is reserved for certain activities.

In other words: if your company turns a profit, it pays corporate tax from year one… unless it falls under one of the regimes below.

Companies permanently exempt from corporate tax (article 6-I-A)

Some entities are exempt without any time limit, by virtue of their very nature:

• cooperatives and their unions, where their activity is limited to collecting raw materials from members and marketing them, or where their annual turnover is below 10 M MAD (excl. VAT) for processing activities;
• associations and non-profit bodies, for activities consistent with their purpose;
• UCITS, FPCT, OPCI and OPCC funds (to avoid double taxation of unit-holders);
• agricultural operators whose turnover is below 5 M MAD;
• recognized foundations and certain public agencies.

Temporary 5-year exemptions (article 6-II-B)

This is where the real “5 years without corporate tax” lives — but activity by activity, each with its own conditions.

A few points that make all the difference in practice:

• Industry & service outsourcing: the 4° covers industrial companies whose activity appears on a list set by regulation (decree 2-17-743), as well as service outsourcing / offshoring companies, whether or not they are located in a dedicated platform.
• Hospitality: the exemption applies only to the share of turnover earned in foreign currency actually repatriated. It runs from the fiscal year of the first foreign-currency accommodation operation, and lapses (with penalties, articles 186 and 208) if the declaratory statement is not filed.
• ZAI (former free zones): the exemption does not apply to construction/assembly sites, credit institutions, or insurance and reinsurance companies.

After the 5 years, two situations must be distinguished. CFC companies and those established in ZAIs are expressly excluded from the 35% rate (Art. 19-I-B): they remain at the 20% rate permanently, whatever the amount of their profit. The other regimes of Art. 6-II-B — industry, service outsourcing, hospitality in foreign currency, sports companies — fall back into the ordinary regime: 20% if net taxable profit stays below MAD 100 million, 35% if it reaches or exceeds that threshold. See our corporate tax rate calculator and the detail of how corporate tax is computed in Morocco.

Legal form makes no difference

This is the most misunderstood point: the exemption follows the activity, not the company’s form. Whether you choose an SARL, an SA, an SAS — or even the branch of a foreign company — the right to the exemption is identical as long as the activity falls under one of the article 6 regimes.

So the real question is not “which legal form to be exempt?” but “is my activity eligible, and under what conditions?”. Once that eligibility is confirmed, the next step is to set up your company in Morocco, choosing the structure best suited to your project — the favorable tax treatment will be the same either way.

Corporate tax reduction for stock-market listing (Art. 6-III)

Contrary to a widespread belief, this scheme is still in force in 2026. Companies that list their shares on the Casablanca Stock Exchange benefit from a corporate tax reduction for three consecutive fiscal years, starting from the fiscal year following their admission to listing (Art. 6-III of the CGI, codified by the 2017 Finance Act No. 73-16): 25% for a listing by opening the capital to the public (sale of existing shares) and 50% for a listing by a capital increase of at least 20% with waiver of the preferential subscription right. Credit institutions, insurance and reinsurance companies, public-service concession holders and publicly owned companies are excluded, and a delisting within ten years triggers the forfeiture of the relief. Conditions, a worked example and shareholder taxation are detailed in our guide to the tax benefits of an IPO in Morocco.

Read also

• Setting up a company in Morocco: complete 2026 guide
• Corporate tax in Morocco: rates and calculation
• Service outsourcing in Morocco: tax regime