Key takeaways: Service offshoring in Morocco — now referred to as service outsourcing — opens the door, under conditions, to a full exemption from corporate income tax for 5 years, then to a reduced 20% rate, as well as a VAT exemption on exports in foreign currency. This exemption is not automatic: it requires an eligible activity (CRM, BPO, ITO, ESO, KPO), genuine substance (employees in Morocco) and export turnover. Three routes lead to it: the offshoring regime, the IAZ and the CFC status.
Offshoring, outsourcing, IAZ: a matter of vocabulary
The terms have changed, the benefits have not. The legislator replaced “free zone” with “Industrial Acceleration Zone” (IAZ) and is gradually substituting “service outsourcing” for the word “offshoring”, for reasons of international tax compliance (removal from grey lists). In everyday language people still speak of an offshore company or nearshoring — see our nearshoring and outsourcing strategies.
Morocco remains one of the most competitive destinations for outsourcing: proximity to Europe, a French-speaking and multilingual workforce, telecom infrastructure at controlled cost, and above all an incentive tax regime. The first step to benefit from it is to set up a company in Morocco — including remotely for a non-resident.
The tax regime for service offshoring
Under Article 6 of the General Tax Code, service outsourcing companies benefit from:
- a full CIT exemption for the first 5 financial years of activity;
- a reduced 20% rate thereafter (the 35% rate applicable to net profits ≥ 100 M MAD does not apply to this regime);
- a VAT exemption with right to deduct on turnover generated through exports in foreign currency.
This regime applies whether the company is located inside or outside a dedicated platform (P2I Offshoring).
An exemption subject to conditions — not an automatic right
This is the point many project owners overlook: the exemption is not granted across the board. To qualify, two cumulative conditions apply:
- Nature of the activity: it must fall within the scope of service offshoring;
- Effectiveness (substance): the company must genuinely operate in Morocco and employ staff there. A mere mailbox is not enough.
Eligible activities, defined by Circular 5/2016, fall into five segments:
| Segment | Scope |
|---|---|
| CRM | Customer relationship management (call centres, support) |
| BPO | Business process outsourcing (accounting, payroll, HR) |
| ITO | Information technology outsourcing (development, infrastructure) |
| ESO | Outsourced engineering and R&D |
| KPO | High “knowledge” value processes (analysis, expertise) |
Offshoring, IAZ or CFC: which route to the exemption?
Three distinct regimes lead to the same mechanics (5-year CIT exemption then 20%), but on different criteria. They cannot be combined: you must opt for the most advantageous one.
| Regime | Eligibility criterion | CIT | Export VAT |
|---|---|---|---|
| Service outsourcing (offshoring, Art. 6) | Activity in the 5 segments + substance | 5-yr exempt → 20% | Exempt, right to deduct |
| IAZ (former free zone) | Physical location in a dedicated zone | 5-yr exempt → 20% | Zone regime |
| CFC | Financial/professional services status, regional headquarters | 5-yr exempt → 20% | Exempt, right to deduct |
The details of each regime are set out in our guide to CIT exemptions in Morocco. To estimate the rate applicable after the exemption period, use our CIT rate calculator.
VAT and withholding tax on dividends
Services used abroad (the core of offshoring) are exempt from VAT with right to deduct: the company can claim a refund of its VAT credit and purchase its inputs and capital goods VAT-free (subject to formalities).
On distribution, dividends paid to the shareholder (Moroccan or foreign) are subject to a withholding tax, set at 11.25% in 2026 (then 10% from 2027). Tax treaties may lower it further.
P2I Offshoring and social incentives
The Integrated Industrial Platforms (P2I Offshoring) are spaces reserved for outsourcing activities, located near major urban centres, with a one-stop shop and flexible real-estate offering. Setting up is requested from the platform operator, supported by an investment file.
Beyond the tax aspect, several schemes reduce payroll costs: ANAPEC financing of training (up to 70%), integration contracts (exemption from CNSS/IR charges up to MAD 6,000/month) and the TAHFIZ programme (IR exemption on gross salary capped at MAD 10,000 and coverage of the employer’s CNSS share, within the limit of 10 employees over 24 months).
Read also
- CIT exemptions in Morocco: IAZ, CFC and startups
- Casablanca Finance City (CFC): status and benefits
- Setting up a company in Morocco as a non-resident
