Corporate tax (IS) rate convergence 2023-2026 in Morocco: what impact?
The 2023-2026 convergence of corporate income tax (Impôt sur les Sociétés, IS) rates, launched by the 2023 Finance Law (Law No. 50-22), replaced the progressive scale of IS (10%, 20%, 31% and 37% for the financial sector) with proportional rates reached in annual steps over four financial years (2023, 2024, 2025, 2026). It ends in 2026 with the target rates of 20% / 35% / 40% provided for in Article 19 of the CGI, assessed on net taxable profit and not on turnover.
The essentials in 6 points
In shortThe LF 2023 introduced a convergence of IS rates over 4 financial years (2023-2026), with each Finance Law confirming the steps
2026 target rates: 20% if net taxable profit is below 100 million MAD, 35% from this threshold, 40% for financial institutions
Proportional rates: the rate of the bracket reached applies to the entire profit, unlike the former progressive scale
Article 6 of the CGI: sectoral exemptions maintained (ZAI, CFC, agriculture), with the reduced ZAI and CFC rates converging towards 20%
Article 144 of the CGI: minimum contribution (rate of 0.25% or 0.15%, minimum 3,000 MAD, 36-month exemption)
LF 2026: rates unchanged, social solidarity contribution 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.
This structural reform differentiates the rates according to the amount of net taxable profit and the business sector; the steps are presented below year by year, with their impact. The rates applicable in 2026, their scope and the specific regimes are detailed in corporate income tax (IS) rates in Morocco in 2026.
Why this convergence?
Before 2023, Morocco applied a progressive scale by profit brackets: 10% up to 300,000 MAD, 20% from 300,001 to 1 million MAD, 31% above 1 million MAD, and 37% for financial institutions. The reform pursues three objectives:
- Simplify the rate structure and make it easier for investors to read
- Lighten the tax burden of SMEs (profit below 100 million MAD) by bringing their rate down to 20%
- Align large companies (profit of 100 million MAD or more) and financial institutions with higher rates (35% and 40%), consistent with Morocco's international commitments (work of the OECD/G20 Inclusive Framework on BEPS, Pillar 2)
Which IS rates applied each year from 2023 to 2026?
Article 19 of the CGI, as worded following the LF 2023, sets an annual progression of the rates, confirmed by the Finance Laws for 2024 (Law No. 55-23), 2025 (Law No. 60-24) and 2026 (Law No. 50-25):
| Net taxable profit | Before 2023 | 2023 | 2024 | 2025 | 2026 target |
|---|---|---|---|---|---|
| ≤ 300,000 MAD | 10% | 12.5% | 15% | 17.5% | 20% |
| 300,001 to 1,000,000 MAD | 20% | 20% | 20% | 20% | 20% |
| 1,000,001 to 99,999,999 MAD | 31% | 28.25% | 25.5% | 22.75% | 20% |
| Same, industrial companies | 26% | 24.5% | 23% | 21.5% | 20% |
| ≥ 100,000,000 MAD | 31% | 32% | 33% | 34% | 35% |
| Credit institutions, BAM, CDG, insurance and reinsurance companies | 37% | 37.75% | 38.5% | 39.25% | 40% |
| Companies previously taxed at 15% (CFC, ZAI after exemption) | 15% | 16.25% | 17.5% | 18.75% | 20% |
Two changes of logic accompany these figures: rates are now proportional (the rate of the bracket reached applies to the whole profit, with no bracket effect) and the 100 million MAD threshold is assessed on net taxable profit, not on turnover.
What is the impact of the reform depending on the company profile?
Profile 1: Very small businesses and SMEs (TPE / PME) with profit below 100 million MAD
For the vast majority of Moroccan companies, the convergence results in a single rate of 20% in 2026, compared with a marginal rate of 31% previously. It is a tax relief that:
- Frees up margins for reinvestment and growth
- Secures cash flow by making the tax burden predictable
- Strengthens Morocco's attractiveness for setting up very small businesses and SMEs
A nuance for very small structures: the profit bracket up to 300,000 MAD, taxed at 10% before 2023, has moved to 20%. A newly created company partially offsets this increase through the minimum contribution exemption for 36 months and the 5-year professional tax exemption.
Profile 2: Large companies (profit of 100 million MAD or more)
Large companies move to 35%, i.e. a moderate increase compared with the previous rate (31%). This category must exercise increased vigilance over:
- The deductibility of expenses (Articles 10 and 11 of the CGI)
- The management of depreciation and provisions
- Transfer pricing in intra-group transactions (Article 213-II of the CGI)
What happens to the special regimes (ZAI, CFC, export)?
The convergence of IS rates does not erase the incentive regimes provided for by the CGI and sectoral legislation, but it has changed them:
- Industrial Acceleration Zones (ZAI) (Law 19-94 as amended, formerly free zones): total IS exemption for 5 years, then a rate of 20% since 2026 (the former 15% rate converged in steps of 16.25%, 17.5% and 18.75%); exemption from VAT with right of deduction and from professional tax for 15 years (see the advantages of a company in a free zone)
- Casablanca Finance City (CFC) (Decree-Law No. 2-20-665 of 30 September 2020, ratified by Law No. 70-20, which repealed and replaced Law No. 44-10): exemption for 5 years from the first financial year in which the status is granted, then 20% (excluding credit institutions and insurance companies); IR for employees at the rate of 20% for 10 years (see the Casablanca Finance City status)
- Export: no longer any temporary IS exemption since the LF 2020; exports remain exempt from VAT with right of deduction
- Agriculture: permanent exemption for farms whose annual turnover is below 5 million MAD
- Cooperatives and associations: regulated exemptions (Article 6 of the CGI)
These regimes interact with the Investment Charter (Charte de l'Investissement) (Framework Law 03-22, Decree No. 2-23-1) and its investment grants.
Did the reform also change the minimum contribution?
Regardless of the IS rate, every company is subject to the minimum contribution (cotisation minimale, CM) provided for in Article 144 of the CGI, which was also reformed by the LF 2023 (see how the minimum contribution works):
- Base: turnover excluding tax and ancillary and financial income
- Rate: 0.25% (standard rate, lowered by the LF 2023); 0.15% for products with regulated prices; 6% for liberal professions subject to IR
- Minimum: 3,000 MAD per financial year
- Exemption: 36 months from the start of operations for newly created companies (at most 60 months after incorporation)
- Payment rule: the company pays the higher of the CM and the IS; since the LF 2016, the excess of CM over IS can no longer be offset against subsequent financial years
How should you manage your taxation after the convergence?
In the context of the convergence, companies would be well advised to:
- Monitor their net taxable profit to check the applicable category (below or above 100 million MAD)
- Anticipate the threshold: crossing it, even on a one-off basis, moves the entire profit from 20% to 35%
- Document deductible expenses in strict compliance with the CGI (Articles 10 and 11)
- Keep supporting documents for 10 years (Article 211 of the CGI)
- Pay the instalments provided for in Article 170 of the CGI (4 instalments of 25% of the IS of the previous financial year), none being due in the first financial year
- File the declaration of taxable income within 3 months of the year-end (Article 20 of the CGI), by online filing on SIMPL
- Make a provision for the social solidarity contribution (Articles 267 to 273 of the CGI) as soon as net profit reaches 1 million MAD (1.5% to 5%)
And after 2026?
The LF 2023 trajectory ends in 2026: the LF 2026 did not change the target rates, but extended the social solidarity contribution for 2026, 2027 and 2028. Subsequent Finance Laws may adjust the rates or thresholds depending on the economic situation, Morocco's international commitments (in particular OECD Pillar 2, a minimum effective rate of 15% for large multinational groups) and budgetary objectives.
Any change would take the form of a tax provision voted by Parliament and codified in the CGI.
How does Charikaty help you anticipate your IS?
To anticipate your IS after the convergence, here is what you need: a duly registered company with its tax identifiers, a simulation of the IS burden based on your profit, then the follow-up of the annual return, the instalments and the minimum contribution. 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), with electronic signature of the articles of association and filing with the commercial court registry, and we deliver your Commercial Register extract and your tax identifiers. With our chartered accountant (expert-comptable) partners, our accounting service helps you simulate your IS burden according to the 2023-2026 trajectory and puts your first obligations in place (annual return, instalments, minimum contribution).
More than 250 companies have already been set up with Charikaty.
FAQ: IS convergence 2023-2026
What were the intermediate IS rates from 2023 to 2025?
The intermediate IS rates were, for the bracket from 1 million to 100 million MAD, 28.25% (2023), 25.5% (2024) and 22.75% (2025); for profits of 100 million MAD or more, 32%, 33% and 34%; for the financial sector, 37.75%, 38.5% and 39.25%; for profits up to 300,000 MAD, 12.5%, 15% and 17.5%.
Why did Morocco converge its IS rates?
The convergence of IS rates aims to simplify taxation, lighten the burden on SMEs and align Morocco with international standards (work of the OECD/G20 Inclusive Framework on BEPS).
What happens if profit crosses 100 million MAD?
A company whose net taxable profit reaches 100 million MAD moves into the higher category and its entire profit is taxed at 35%, since the rate is proportional. The threshold is assessed on the net taxable profit for the financial year, not on turnover.
Do the ZAI and CFC regimes still exist after the reform?
Yes, the ZAI and CFC regimes still exist, subject to approval conditions. Their 5-year exemption is maintained, but the reduced rate of 15% that followed it converged towards 20% in 2026 (Law 19-94 for ZAI, Decree-Law No. 2-20-665 for CFC).
What about OECD Pillar 2 (minimum rate of 15%)?
OECD Pillar 2 concerns large multinational groups whose consolidated turnover exceeds 750 million EUR. For these groups, a top-up tax may be due in the parent company's jurisdiction if the local effective rate is below 15%. The Moroccan IS rates in 2026 (20%, 35%, 40%) are above this minimum.
Do you need to change your legal form to benefit from the 20% IS rate?
No. The 20% IS rate depends on net taxable profit, not on the corporate form: a SARL, an SAS or an SA is subject to it in the same way. A personalized tax audit is still recommended before any restructuring.
Related articles
Create Your Company with Charikaty
Charikaty sets up your company online and, with its chartered accountant partners, factors in from the outset the 2023-2026 IS rate convergence and the incentive regimes applicable to your activity.
- 100% online
- MRE friendly
- WhatsApp support 24/7WhatsApp support
