Moroccan tax law rests on one principal legislative foundation: the General Tax Code (Code general des impots, CGI), supplemented each year by the Finance Act, which introduces new provisions, adjusts rates, and revises thresholds. The tax administration, embodied by the General Tax Directorate (Direction generale des impots, DGI), is responsible for applying these rules, collecting revenue, and conducting audits. Together, these elements form a framework that is both structured and constantly evolving.
Corporate tax (Impot sur les societes, IS) is the cornerstone of business taxation. The ongoing reform has introduced a convergence of rates toward a progressive schedule, with the marginal rate now applied according to net taxable profit. Exporting companies, free zones, and certain sectors such as social housing and agriculture benefit from preferential regimes that must be mastered to optimize the tax burden without crossing the line into abusive tax planning.
Personal income tax (Impot sur le revenu, IR) applies to individuals on a progressive scale ranging from 0% to 38%. It covers salary income, professional income, agricultural income, rental income, and investment income. Self-employed professionals and auto-entrepreneurs are subject to specific regimes — the actual net income regime, the simplified net income regime, or the single professional contribution — and the initial choice of regime durably shapes the tax burden and accounting obligations.
Value Added Tax (TVA) operates under a multi-rate system (20%, 14%, 10%, 7%) accompanied by numerous exemptions, making it one of the most technical taxes in the Moroccan system. Issues around the right to deduction, prorata adjustments, and the VAT credit carry-forward (butoir) generate abundant disputes before the administration and the courts. The progressive VAT reform launched since 2024 aims to eliminate the carry-forward cap and generalize the right to refund, but the transitional period remains a source of complexity.
Registration duties apply to real estate transfers, company formations, capital increases, and business asset sales. Rates range from 1% to 6% depending on the nature of the transaction. Finally, Morocco has signed over sixty double taxation treaties governing the taxation of cross-border transactions, which serve as an essential planning tool for international investors.
