Morocco taxes residents on worldwide income and non-residents on Morocco-source income only. Morocco operates a self-assessment system, with the Direction Generale des Impots (DGI) conducting post-filing review and audit.
The Moroccan tax year is generally the calendar year (companies may adopt a different fiscal year). The individual filing deadline is generally the end of April/early May of the following year (varies by filing method); corporate filing deadline is generally within 3 months of the fiscal year-end.
Morocco's standard corporate income tax (CIT) rate is 20% for most companies (net taxable profit below MAD 100 million), effective January 1, 2026 under Finance Law No. 50-25; a 35% rate applies only to companies with net taxable profit at or above MAD 100 million, and a 40% rate applies to credit institutions and insurers, per Article 19-I of the General Tax Code (CGI).
The headline personal income tax (PIT) rate is 37%.
The standard VAT/GST (or equivalent consumption tax) rate is 20%.
Moroccan individual tax residence is determined (in order of priority) by: place of permanent home, center of economic interest, or duration of stay exceeding 183 days within any 365-day period (non-consecutive days count, and the window doesn't reset by calendar year). A company is resident if incorporated in Morocco or if its place of effective management is in Morocco. Residents are taxed on worldwide income; non-residents only on Morocco-source income.
A non-Moroccan entity has a Moroccan permanent establishment through a fixed place of business or a dependent agent habitually concluding contracts in Morocco on the entity's behalf, following the OECD Model Treaty definition as applied under Moroccan domestic law and any applicable tax treaty.
Morocco has no Controlled Foreign Company rules - Moroccan-resident companies are not taxed on undistributed profits of foreign subsidiaries unless that income is actually repatriated or a specific tax treaty grants Morocco taxing rights over it.
Morocco has no standalone/formal thin capitalization regime with a fixed ratio. Instead, Article 10 of the General Tax Code restricts shareholder-loan interest deductibility through two conditions: share capital must be fully paid up when interest accrues, and the total shareholder loan principal generating deductible interest cannot exceed the company's subscribed equity capital. The applicable interest rate is separately capped at Bank Al-Maghrib's official six-month treasury bill rate, set annually by the Ministry of Finance.
Morocco does not use an elective check-the-box classification system; entity classification generally follows the entity's actual legal characteristics. Morocco does not have a comprehensive ATAD2-style anti-hybrid regime.
No foreign bank account or foreign financial asset reporting regime exists in Morocco requiring residents to separately disclose foreign accounts.
Morocco does not have a CFC regime (see CFC section above) and does not provide a broad participation exemption for foreign dividends in the European sense; Morocco does provide a domestic inter-company dividend exemption for dividends between Moroccan resident companies, but foreign-sourced dividends are generally taxable, with relief from double taxation available primarily through Morocco's treaty network.
Morocco has a real foreign tax credit regime available to both individuals and companies for foreign tax paid on foreign-source income also taxed in Morocco, capped at the Moroccan tax otherwise due on that income.
Morocco has signed double tax treaties with more than 60 countries, including all major Western economies. Morocco is also a member of the Arab Maghreb Union (with Algeria, Libya, Mauritania, and Tunisia).