PRESENTATION OF MOROCCO : TAXATION
- Value-Added Tax (VAT)
- Company Tax :
- Standard rate for insurance companies, banks and financial institutions: 10%From MAD 0 to 300,000: 10%
From MAD 300,001 to 1,000,000: 20%
Above MAD 1,000,000: 31%
Leasing companies and credit institutions: 37%
Opt-in tax for contractors engaged in engineering, construction or assembly projects relating to industrial or technical installations: 8% of the contract price (net VAT and other similar taxes)
Companies operating in free trade zones (after five years of total exemption): 8.75%
Companies with regional or international head offices as recognised by the Casablanca Finance City regime: 10%
Comapanies operating in specific regions in the North and in the South: 17.5%
Companies exporting goods and services whose tax-exempt statuses have expired after 5 years: 17.5%
Reduced rate for the first 5 years for agricultural income earners subject to corporate tax, family businesses, mining companies, hotels, private schools and educational institutions: 17.5%
Holding companies: USD 500 per year for the first 15 years
- Withholding Taxes :
- Dividends: 15% unless otherwise provided in a tax treaty, Interest: 10% (a loan granted for 10 years or more is exempt from withholding tax), Royalties: 10% unless otherwise provided in a tax treaty.
- Social Security Contributions Paid By Employers :
- Old age (7.93%),
- Sickness (0.67%),
- Healthcare (4.11%),
- Unemployment (0.38%),
- Family Benefits (6.4%),
- Professional training (1.6%),
totalling 21.09% of gross payroll.
- Other Domestic Resources
- Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.
|Morocco||Middle East & North Africa||United States||Germany|
|Number of Payments of Taxes per Year||6.0||17.8||10.6||9.0|
|Time Taken For Administrative Formalities (Hours)||211.0||208.2||175.0||218.0|
|Total Share of Taxes (% of Profit)||49.3||32.3||44.0||48.9|
Source: Doing Business – Latest available data.