What are the IS (corporate income tax) rates in Morocco in 2026?
In 2026, the corporate income tax (IS) rate in Morocco is 20% for companies whose net taxable profit is below 100 million MAD, 35% from this threshold and 40% for credit institutions, Bank Al-Maghrib, the CDG and insurance and reinsurance companies (Article 19 of the CGI). These proportional rates apply to the entire net taxable profit, regardless of turnover and legal form.
The essentials in 6 points
In shortIS is governed by Articles 1, 2, 6 and 19 of the CGI 2026; SAs, SARLs, SARL AUs, SASs and branches of foreign companies are subject to it
LF 2023 convergence: gradual alignment of rates over four financial years (2023-2026), completed in 2026
2026 rates: 20% if net taxable profit is below 100 million MAD, 35% from 100 million MAD
Specific rate: 40% for credit institutions and similar bodies, Bank Al-Maghrib, the CDG and insurance and reinsurance companies
Proportional rate: the rate of the bracket reached applies to the entire profit; the former reduced rate for profits ≤ 300,000 MAD disappeared in 2026
IS is combined with the minimum contribution (cotisation minimale) (Art. 144 CGI) and, from 1 million MAD of profit, with the social solidarity contribution (contribution sociale de solidarité) extended until 2028
the information provided in this article is for information purposes only and does not constitute personalized legal advice. We recommend that you consult a qualified legal expert before making any decision. Charikaty provides experts to support you: contact us for free advice.
Corporate income tax (Impôt sur les Sociétés, IS) is levied on the profits of Moroccan companies pursuant to Articles 1 et seq. of the General Tax Code (Code Général des Impôts, CGI 2026). The 2026 rates are the culmination of the gradual convergence launched by the 2023 Finance Law over four financial years (2023 to 2026).
Which companies are subject to IS in Morocco?
IS applies to the profits made by the companies and other legal entities listed in Article 2 of the CGI, in particular:
- Capital companies (sociétés de capitaux) (SA, SARL, SARL AU, SAS), whatever their purpose
- Public institutions and other legal entities carrying on a profit-making activity
- Branches of foreign companies, for their Moroccan-source profits
- General partnerships (sociétés en nom collectif) and limited partnerships (sociétés en commandite simple) of natural persons, by option (otherwise, IR)
The IS tax base is the taxable result (résultat fiscal), i.e. the accounting result adjusted in accordance with the CGI (deductible expenses under Article 10, non-deductible expenses under Article 11, depreciation, provisions, carry-forward of losses).
What are the IS rates in 2026 (Article 19 of the CGI)?
Since the 2023 Finance Law, IS has been based on proportional rates set according to net taxable profit, reached in steps from 2023 to 2026:
Standard rate: 2026 financial year
| Category | 2026 rate |
|---|---|
| Companies whose net taxable profit is below 100,000,000 MAD | 20% |
| Companies whose net taxable profit is equal to or above 100,000,000 MAD | 35% |
| Credit institutions and similar bodies, Bank Al-Maghrib, CDG, insurance and reinsurance companies | 40% |
The rate is proportional, not progressive: a company whose profit reaches 100 million MAD has its entire profit taxed at 35%. The threshold is assessed on net taxable profit, not on turnover.
End of the reduced rate for small profits
Before 2023, profits not exceeding 300,000 MAD were taxed at 10%. This rate was raised in steps to reach the single rate of 20% in 2026: there is no longer any preferential rate for very small businesses (TPE), whose relief now comes through the minimum contribution exemption for the first 36 months.
Withholding tax rates (Article 19-IV of the CGI)
IS is also collected by withholding at source on dividends (11.25% for 2026 distributions, 10% from 1 January 2027), income from fixed-income investments (20%) and gross income paid to non-resident companies (10%, subject to tax treaties). The rules for this withholding are detailed in the taxation of dividends in Morocco.
How have IS rates changed from 2023 to 2026?
The LF 2023 replaced the former scale (10% / 20% / 31%, 37% for the financial sector) with an annual trajectory that reaches the target rates above in 2026, in order to simplify taxation, lighten the burden on SMEs and align large companies with international standards. The steps for each year and their impact are presented in the history of the 2023-2026 IS rate convergence.
When does the minimum contribution replace IS?
Article 144 of the CGI establishes a minimum contribution (cotisation minimale, CM), a minimum tax due for the financial year even when there is no profit (see how the minimum contribution works):
- Base: turnover excluding tax and ancillary and financial income
- Rate: 0.25% (standard rate since the LF 2023); 0.15% for products with regulated prices (hydrocarbons, sugar, flour, water, electricity, medicines, etc.); 6% for liberal professions subject to IR
- Minimum: 3,000 MAD per financial year
- Exemption: the first 36 months following the start of operations (at most 60 months after incorporation)
- Payment rule: the company pays the higher of IS and the CM; since the LF 2016, any excess of CM over IS can no longer be offset against subsequent financial years
What exemptions and specific rates exist?
Article 6 of the CGI provides for several exemptions and specific rates, strictly regulated (approval, commitments, monitoring):
- Industrial Acceleration Zones (Zones d'Accélération Industrielle, ZAI), formerly free zones (Law 19-94 as amended): full exemption for 5 years, then 20% since 2026 (16.25%, 17.5% and 18.75% during the transition); see the advantages of a company in a free zone
- Casablanca Finance City (CFC) (Decree-Law No. 2-20-665): exemption for 5 years from the first financial year in which the status is granted, then 20% (excluding credit institutions and insurance companies)
- Exporting companies: no more temporary exemption since the LF 2020; profit falls under the ordinary rate, with exports remaining exempt from VAT with the right to deduct
- Agricultural operations: permanent exemption when annual turnover is below 5 million MAD
- Parent-subsidiary regime (régime mère-fille): dividends received from a resident company subject to IS benefit from a 100% allowance (Art. 6-I-C-1°) and are exempt from withholding tax, on presentation of a certificate of ownership of the shares (attestation de propriété des titres)
How do you file and pay IS?
Annual return
In accordance with Article 20 of the CGI, the company files each year a return of its taxable result within the three months following the end of the financial year, together with its financial statements (états de synthèse), by mandatory electronic filing on the DGI's SIMPL portal. The full calendar is set out in the tax obligations of a new company.
Instalment system
Article 170 of the CGI provides for IS to be paid in the form of four provisional instalments, each equal to 25% of the IS for the previous financial year, paid before the end of each quarter, with a final adjustment (régularisation) when the return is filed. A newly created company does not pay instalments during its first financial year, as there is no reference financial year.
Social solidarity contribution
The CSS on profits (Art. 267 to 273 of the CGI), extended for 2026, 2027 and 2028 by the LF 2026, only concerns companies whose net profit reaches 1 million MAD, at rates from 1.5% to 5% depending on the profit (see the social solidarity contribution).
Retention of documents
Accounting and tax documents must be kept for ten years in accordance with Article 211 of the CGI.
Late penalties
Article 184 of the CGI provides for a surcharge of 5% (return filed less than 30 days late), 15% (beyond that) or 20% (ex officio assessment, imposition d'office). Article 208 adds, for any late payment, a penalty of 10% and a surcharge of 5% for the first month then 0.5% per additional month.
How does Charikaty simplify IS management?
To be compliant with IS, here is what you need: a registered company with its tax identifiers, SIMPL enrolment, monitoring of the instalments and of the minimum contribution exemption, then the annual return of the taxable result. With Charikaty, you do everything online: as a private Moroccan legal-tech platform, we set up your company 100% online (SARL, SARL AU, SAS, SA), from the electronic signature of the articles of association to the filing with the commercial court registry, and provide you with your Commercial Register extract together with your tax identifiers. With our chartered accountant (expert-comptable) partners, our accounting service puts in place your first IS obligations: SIMPL enrolment, instalments, minimum contribution exemption and annual return.
More than 250 companies have already been set up with Charikaty.
FAQ: IS in Morocco
What is the standard IS rate in Morocco in 2026?
The standard IS rate in Morocco in 2026 is 20% for companies whose net taxable profit is below 100 million MAD and 35% from this threshold (Article 19 of the CGI). This rate applies to the entire profit.
Is there still a preferential IS rate for small companies?
No. The former IS rate of 10% on profits not exceeding 300,000 MAD merged into the single rate of 20% in 2026. Newly created companies do, however, benefit from the minimum contribution exemption during their first 36 months of operation.
Do banks pay a higher IS?
Yes. Credit institutions, Bank Al-Maghrib, the CDG and insurance and reinsurance companies have been subject to an IS rate of 40% since the 2026 financial year.
Is an exporting company exempt from IS?
No. Since the LF 2020, new exporting companies no longer benefit from a temporary IS exemption and fall under the ordinary rate (20% below 100 million MAD of net taxable profit). Only companies in a ZAI or with CFC status retain a 5-year exemption, followed by the 20% rate.
When must the IS return be filed?
The IS return (return of the taxable result, déclaration du résultat fiscal) is filed on SIMPL within the 3 months following the end of the financial year (Article 20 of the CGI), i.e. no later than 31 March for a financial year ending on 31 December.
How do IS instalments work?
Article 170 of the CGI provides for 4 quarterly IS instalments, each equal to 25% of the IS for the previous financial year, adjusted when the annual return is filed. A newly created company pays no instalment during its first financial year.
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