Morocco Corporate Tax Rate 2026: Complete Guide to IS

Introduction: The 2026 Corporate Tax Reform

2026 marks the completion of Morocco's comprehensive corporate tax (IS) reform, established by the Finance Law (LF) 2023. After three years of gradual convergence, the Moroccan tax system definitively transitions to a simplified and unified structure.

The new IS system revolves around three pivot rates:

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1. General Law Rate (Standard Case)

For the majority of companies, the IS rate is determined solely by the amount of net taxable profit (NTP).

IS rate table for 2026

Rules for switching between rates

Maintaining the 35% rate

A company taxed at 35% that subsequently earns a profit below 100M MAD can only return to the 20% rate after three consecutive fiscal years below this threshold. This rule aims to prevent artificial profit optimization.

LF 2024 Exception — Non-recurring income

If the exceeding of the 100M MAD threshold is due exclusively to non-recurring income (capital gains from asset disposals), the 35% rate applies only for that specific fiscal year. The company may return to the 20% rate from the following year if its operating profit remains below the threshold.

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2. Industrial Companies

Companies engaged in industrial activities (manufacturing or processing of tangible movable goods with a predominant role of equipment) complete their convergence in 2026.

IS rates 2026 for industry

The convergence is now fully complete for this sector: no more intermediate rates or special regimes.

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3. Financial Sector and Insurance

Entities in this sector are subject to a specific higher rate, regardless of the profit amount.

IS Rate 2026: 40% (flat rate)

Entities concerned:

• Credit institutions (banks, financing companies)
• Bank Al-Maghrib (Central Bank)
• Caisse de Dépôt et de Gestion (CDG)
• Insurance and reinsurance companies
• Takaful operators (Islamic insurance)

> ⚠️ This rate applies from the first dirham of profit, with no progressive threshold.

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4. Specific Territorial Regimes

4.1 Casablanca Finance City (CFC)

CFC companies reach the target rate of 20% in 2026.

CFC Investment Provision:

These companies may establish a deductible provision (cap of 25% of profit for 2026) to maintain an effective tax rate of 15% on their result.

4.2 Industrial Acceleration Zones (ZAI)

> ⚠️ Important note: Financial companies located in ZAI are excluded from these advantages and remain subject to the 40% rate.

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5. Former Capped Rate Regimes

Companies that previously benefited from a rate capped at 17.50% are now aligned with the two-bracket standard scale.

Sectors concerned:

Exporters, Hotels and tourist establishments, Mining companies, Private education establishments, Agricultural companies, etc.

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6. Special Cases and Exemptions

Major Investment Projects

Companies created after 01/01/2023 committing to invest at least MAD 1.5 billion over 5 years benefit from a fixed and permanent rate of 20%, even if their profit exceeds 100M MAD. This mechanism aims to attract mega-investments.

FIFA

FIFA representations in Morocco (in connection with the 2030 World Cup) benefit from total and permanent IS exemption for their statutory activities.

Joint Ventures (SEP)

From January 1, 2026, SEPs comprising at least one legal entity or more than 5 individual partners are compulsorily subject to IS in the name of the company. This measure puts an end to the tax opacity of large groupings.

Economic Interest Groups (GIE)

GIEs are subject to IS. Taxation is established in the name of the members according to their share of the group's results.

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General Summary — Morocco IS 2026

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FAQ IS 2026: The Most Frequently Asked Questions

❓ 1. What are the applicable IS rates in Morocco in 2026?

In 2026, the Moroccan tax system completes its transition to a simplified structure around three rates:

• 20%: applicable to all companies with a net taxable profit below MAD 100 million
• 35%: applicable to companies with a net taxable profit equal to or above MAD 100 million (except for ZAI, CFC, large projects)
• 40%: specific rate for credit institutions, Bank Al Maghrib, CDG, insurance and reinsurance companies

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❓ 2. How does the MAD 100 million threshold work for the 35% rate?

The law provides strict rules to prevent oscillation between rates:

• Maintenance rule: A company that exceeds the threshold remains subject to 35%. To return to 20%, its profit must remain below MAD 100M for three consecutive fiscal years.
• Non-recurring income exception: If the threshold was exceeded solely due to capital gains on asset disposals, the 35% rate applies only for that fiscal year. The company may return to 20% from the following year.

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❓ 3. What happens to ZAI and CFC companies in 2026?

Preferential regimes converge toward the 20% target rate:

• Five-year exemption maintained: Total IS exemption for the first 5 fiscal years of operations
• Post-exemption rate: After these 5 years, ZAI and CFC companies are subject to the 20% rate from 2026

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❓ 4. What is the Withholding Tax (WHT) rate on dividends in 2026?

Finance Law 2025 simplified the reduction schedule. For 2026:

• 11.25% for amounts distributed from January 1, 2026
• This rate applies regardless of the fiscal year of the profits (FIFO rule abolished)
• The final rate of 10% will be reached for distributions from January 1, 2027

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❓ 5. How are provisional instalments calculated in 2026?

During the transitional period (2023–2026), instalments are not calculated based on the prior year's tax but according to the IS rates applicable to the current fiscal year:

> Each instalment paid in 2026 = 25% of the theoretical IS calculated by applying 2026 rates (e.g. 20%) to the 2025 fiscal year profit.

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❓ 6. What are the new rules for Joint Ventures (SEP) and EIGs in 2026?

From January 1, 2026, the tax regime changes radically for these entities:

• SEPs compulsorily subject to IS: Joint ventures comprising at least one legal entity or more than 5 individual partners are now compulsorily subject to IS.
• Economic Interest Groups (EIG): EIGs are also subject to IS from fiscal year 2025, with taxation established in the name of members in proportion to their share.

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❓ 7. Are there incentives for major investment projects?

Yes. Companies incorporated from January 1, 2023 committing to invest at least MAD 1.5 billion over 5 years benefit from a fixed and permanent 20% rate, even if their net taxable profit exceeds MAD 100M.

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> 💡 Expert Tip: In 2026, vigilance is required for companies close to the MAD 100M threshold. Optimal management of asset disposal capital gains can prevent a lasting shift to the 35% rate. Note that the 70% allowance on disposal capital gains has been extended to 2030 and now includes land and buildings.

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Expert Advice from Accounting Services SARL

The 2026 IS reform is an opportunity to review your company's legal structure and optimize your effective tax burden. Our chartered accountants analyze your situation and propose tailored strategies:

• Eligibility check for ZAI or CFC regimes
• Optimization via investment provision
• Structuring of major investment projects
• SEP/GIE compliance with new rules

📞 +212 617177373 | 💬 WhatsApp available 7 days/7