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Withholding Tax in Morocco 2026 — Which Rate Applies?
CIT, PIT or VAT: dividends, interest, fees, rent, non-residents. Identify the withholding tax rate, whether it is final or creditable, and your obligations in a few clicks. Compliant with the 2026 Tax Code.
Disclaimer
This tool provides guidance based on the 2026 Tax Code (CGI) and current Circular Notes. It does not replace professional analysis. Each situation may involve specific aspects requiring in-depth review. For a definitive qualification, consult a chartered accountant.
Important note on tax treaties
For payments to non-residents, withholding tax rates may be reduced by international tax treaties signed by Morocco (over 60 treaties in force). The treaty rate prevails over domestic law when more favourable. Check the applicable treaty before applying the withholding tax.
Withholding Tax in Morocco — Guides by Income Type
CIT, PIT and VAT: rates, final or creditable status, filing obligations. Explore every aspect of Moroccan withholding tax.
Withholding Tax in Morocco
Complete guide: CIT, PIT, VAT — rates, obligations and applicable regimes in 2026.
WHT on Dividends
10% rate (transitional 11.25%), final or creditable status and CIT/PIT offset.
WHT on Interest
Fixed-income investments: 20% creditable or 30% final rate depending on status.
WHT on Non-Resident Services
10% rate on gross payments to non-residents and tax treaties.
CIT Calculation
Progressive scale, minimum contribution and withholding tax offset.
CIT for Foreign Companies
Taxation of non-residents, withholding tax and 8% flat-rate option.
Morocco Tax Treaties
Over 60 treaties in force: treaty rates and elimination of double taxation.
Tax Code 2026
General Tax Code 2026: full text and Finance Act amendments.
Withholding Tax in Morocco: Frequently Asked Questions
What is the withholding tax on fees paid to a resident company?
The rate is 5% excl. VAT, creditable against CIT with a right to refund, but only when the payer is the State, a local authority, a public institution, a bank, an insurance company or a company whose turnover excl. VAT is equal to or greater than MAD 200 million (Art. 157-I CGI). If the payer does not fall into these categories, no withholding tax applies. Note: for non-residents, the rate is 10% (Art. 160 CGI).
Is the withholding tax on dividends final?
It depends on the beneficiary. For individuals, the 10% withholding (transitional 11.25% in 2025-2026) is final for PIT purposes: the beneficiary does not need to report this income. For legal entities subject to CIT, the 10% withholding is creditable against CIT with a right to refund: it constitutes an advance deductible from the CIT due.
When is the withholding tax final vs creditable?
A final withholding constitutes the definitive tax: the beneficiary does not need to report this income and cannot recover any excess. This applies to dividends paid to individuals (10%), investments outside RNR/RNS (30%), or artist fees (30%). A creditable (non-final) withholding is an advance deductible from CIT or PIT: the beneficiary reports gross income, offsets the withholding and recovers any surplus. Examples: investments for companies (20%), fees for individuals under RNR (10%), rent (10% or 15%).
How does VAT withholding tax work?
Since the 2024 Finance Act, a withholding tax mechanism applies to VAT to secure its collection. For services, the payer withholds 75% of the VAT if the service provider presents their tax compliance certificate, or 100% if not. Payment is made to the Treasury during the following month. For suppliers of capital goods without a certificate, withholding is 100%. Bank interest and non-resident operations are subject to 100% VAT withholding.
Do tax treaties reduce withholding tax?
Yes. For payments to non-residents, the bilateral tax treaties signed by Morocco (over 60 in force) can reduce or eliminate withholding tax. The treaty rate prevails over domestic law when more favourable. Examples: the Morocco-France treaty caps royalties at 5-10%, interest at 10-15%. It is essential to check the applicable treaty before applying the withholding tax and to retain proof of the beneficiary's tax residency.
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