Tax laws Morocco
Morocco's tax system comprises several categories, including direct taxes, value-added taxes, registration fees, and stamp duties. The primary taxes are outlined below:
1. Income Tax:
Personal Income Tax: Imposed on individuals' income, including wages, professional earnings, agricultural income, and profits from movable capital. As of 2025, the tax rates are progressive:
| Annual Taxable Income (MAD) | Tax Rate (%) |
|---|---|
| 1 – 40,000 | 0 |
| 40,001 – 60,000 | 10 |
| 60,001 – 80,000 | 20 |
| 80,001 – 100,000 | 30 |
| 100,001 – 180,000 | 34 |
| Over 180,000 | 37 |
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Corporate Income Tax: Applicable to corporations, public institutions, and other legal entities engaged in lucrative activities. Rates vary based on income levels and specific sectors:
| Income Range (MAD) | Tax Rate (%) |
|---|---|
| 0 – 300,000 | 10 |
| 300,001 – 1,000,000 | 20 |
| Above 1,000,000 | 31 |
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Special rates apply to sectors like leasing, credit institutions, and companies operating in free trade zones.
2. Capital Gains Tax:
- Individuals: Capital gains from the sale of properties are taxed at a flat rate of 20%. An exemption applies if the property has been used as the primary residence for at least six years. citeturn0search10
3. Value-Added Tax (VAT):
- Standard Rate: 20%
- Reduced Rates: 7% for certain consumer products, 10% for specific food items and hotel services, and 14% for other designated products.
4. Registration Duties and Stamp Taxes:
- Registration Duties: Applicable to various transactions, including property transfers and company formations, with rates ranging from 1% to 6%.
- Stamp Taxes: Levied on certain documents and transactions, with rates varying based on the nature of the document or transaction.
5. Housing Tax:
- Annual Rental Value Tax: Progressive rates based on the property's rental value, ranging from 0% to 30%.
6. Other Taxes:
- Municipal Tax: Levied on rental properties, with rates of 10.5% for urban areas and 6.5% for outskirts.
- Business Tax: Applied to the rental value of business premises and fixed assets, with rates between 10% and 30%.
Recent Developments:
The International Monetary Fund (IMF) has recommended that Morocco expand its tax base and reduce subsidies to state-owned enterprises to enhance financial reforms and reduce debt. These measures aim to improve fiscal stability and stimulate economic growth.
Note: Tax laws and regulations are subject to change. For the most current information, it is advisable to consult the Moroccan Ministry of Economy and Finance or seek professional tax advice.
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