In brief: Professional income in Morocco is subject to income tax (IR) under three regimes: Net Real Profit (RNR), Simplified Net Profit (RNS) and the Single Professional Contribution (CPU). The choice of regime depends on the turnover and the nature of the business activity. The RNR applies by default above MAD 2,000,000 (commercial activities) or MAD 500,000 (service activities), while the CPU targets very small businesses with a capped turnover. Each regime entails specific accounting and filing obligations (Art. 30 to 41 of the Tax Code).
What qualifies as professional income?
Article 30 of the Tax Code defines professional income as income derived from activities of a:
- Commercial nature: buying and reselling goods, trading, import-export
- Industrial nature: processing raw materials, manufacturing
- Artisanal nature: manual or semi-industrial production
- Liberal nature: regulated professions (lawyers, doctors, architects, chartered accountants) or unregulated professions (consultants, trainers)
Income from agricultural operations is also treated as professional income when turnover exceeds a certain threshold, as well as the remuneration of managing partners of partnerships not subject to corporate tax (IS).
A taxpayer who carries out a business activity as a sole proprietor is subject to income tax under the professional income category. The tax regime determines how the taxable profit is calculated.
Net Real Profit Regime (RNR) — Art. 33 to 37
Scope of application
The RNR is the default regime. It applies mandatorily to taxpayers whose annual turnover exceeds:
- MAD 2,000,000 for commercial, industrial and artisanal activities
- MAD 500,000 for service activities and liberal professions
Any taxpayer may voluntarily opt for the RNR, even if their turnover falls below these thresholds.
Determination of the tax result
The taxable profit is determined according to accounting rules, adjusted by tax adjustments:
Tax result = Accounting result + Add-backs − Deductions
Taxable income includes turnover, ancillary income, financial income, grants received and capital gains on asset disposals.
Deductible expenses include purchases consumed, personnel costs, rent, depreciation, provisions set aside and interest on business loans, subject to the deductibility conditions set out in the Tax Code.
Loss carryforward
In accordance with Article 37, the deficit of a fiscal year may be carried forward and offset against the profits of the following 4 fiscal years. However, the portion of the deficit corresponding to depreciation may be carried forward without time limit. This distinction is essential for businesses in an investment phase.
Accounting obligations
A taxpayer subject to the RNR must maintain full accounts in compliance with the General Chart of Accounts (CGNC): journal, general ledger, trial balance, inventory and financial statements (balance sheet, income statement, statement of changes in equity, cash flow statement).
Simplified Net Profit Regime (RNS) — Art. 38-39
Eligibility conditions
The RNS is an intermediate regime intended for taxpayers whose annual turnover does not exceed:
| Nature of activity | Maximum turnover threshold |
|---|---|
| Commerce, industry, crafts | MAD 2,000,000 |
| Service activities, liberal professions | MAD 500,000 |
The option for the RNS must be filed before April 1 of the relevant fiscal year or at the start of business. The accounting period must coincide with the calendar year (January 1 to December 31).
Calculation method
The simplified net profit is determined from simplified accounts. The taxable result is calculated as the difference between income received and expenses paid, adjusted for inventory changes and depreciation.
Accounting obligations
The taxpayer maintains simplified accounts comprising a receipts and expenditure journal, a register of fixed assets and depreciation, and supporting documents.
Single Professional Contribution (CPU) — Art. 40-41
Principle and background
The CPU replaced the former flat-rate profit regime from the 2021 Finance Act. It targets very small businesses with low turnover. Note that the CPU is distinct from the auto-entrepreneur regime, which has its own legal and tax framework.
Eligibility conditions
The CPU is open to taxpayers carrying out a professional activity whose annual turnover does not exceed the thresholds set by Article 40 of the Tax Code. Liberal professions and certain regulated activities are excluded.
Tax calculation
The tax under the CPU comprises two components:
- Professional IR: annual turnover x coefficient set by activity = flat-rate profit, subject to a 10% rate
- Supplementary duty: intended to cover social and medical insurance contributions
The coefficients vary by type of activity (retail trade, crafts, services, etc.) and are set by regulation. Filing is done through the SIMPL portal.
Advantages and limitations
The CPU offers great administrative simplicity: no formal accounting, a single filing and a one-off payment. However, it does not allow the deduction of actual expenses, which may be disadvantageous for taxpayers whose expenses are high relative to their turnover.
Comparative table of the three regimes
| Criterion | RNR | RNS | CPU |
|---|---|---|---|
| Commercial turnover threshold | > MAD 2,000,000 | ≤ MAD 2,000,000 | Regulatory thresholds |
| Services turnover threshold | > MAD 500,000 | ≤ MAD 500,000 | Regulatory thresholds |
| Tax base | Adjusted accounting result | Simplified result | Turnover x coefficient |
| IR rate | Progressive scale (0-37%) | Progressive scale (0-37%) | 10% (final withholding) |
| Accounting | Full (CGNC) | Simplified | No formal requirement |
| Loss carryforward | 4 years (depreciation unlimited) | 4 years | Not applicable |
| Fiscal year | Flexible (12 months) | Calendar year | Calendar year |
| Filing | Annual + e-filing | Annual + e-filing | Single CPU filing |
Switching from one regime to another is possible under certain conditions. For example, exceeding the RNS thresholds for two consecutive fiscal years triggers an automatic switch to the RNR.
Common filing obligations
Regardless of the regime, the professional taxpayer must:
- File an annual return of global income by May 1 of the year following the fiscal year
- Make provisional instalment payments if the IR due exceeds a certain amount
- File and pay the withholding tax on salaries paid to employees
- Use the SIMPL portal for e-filing and e-payment
Reference texts: General Tax Code 2026 — Art. 30 to 41 (professional income) — Circular Note No. 717
Frequently asked questions
Can I opt for the RNR even if my turnover is below the thresholds?
Yes. The RNR is the default regime and any taxpayer may opt for it voluntarily, regardless of turnover. This option is worthwhile when actual expenses are high, as they are fully deductible, unlike the simplified RNS or the flat-rate CPU.
What is the difference between the CPU and auto-entrepreneur status?
The CPU is a tax regime applicable to individuals carrying out a professional activity with low turnover. The auto-entrepreneur status is a distinct legal framework, governed by Law 114-13, with its own turnover ceilings, tax rates and obligations. An auto-entrepreneur does not fall under the CPU but under a specific regime with a final withholding rate on turnover.
How does the switch from RNS to RNR work?
The switch from RNS to RNR occurs when the taxpayer exceeds the applicable turnover thresholds for two consecutive fiscal years. This switch is automatic and takes effect on January 1 of the fiscal year following the second year of exceeding the threshold. The taxpayer must then maintain full accounts in compliance with the CGNC.
Can professional income be combined with other income for IR purposes?
Yes. Moroccan IR is a global tax: professional income is added to salary income, rental income, investment income and agricultural income to determine the total taxable income subject to the progressive scale. However, income subject to a final withholding rate (CPU, certain rental or investment income) is not included in global income.
READ ALSO
Withholding tax on dividends in Morocco
Tax audit in Morocco: preparation checklist
Salary income tax: 2026 scale in Morocco
Need help choosing the most suitable IR regime for your professional activity? Contact our tax law experts for a personalised analysis of your situation.
