Presentation taxation in Morocco

PRESENTATION OF MOROCCO : TAXATION

Value-Added Tax (VAT)
20%
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.