Minimum contribution (CM) in Morocco in 2026: how does the minimum tax work?
The minimum contribution (CM) is the minimum tax (impôt plancher) under Article 144 of the General Tax Code (Code Général des Impôts, CGI 2026): every company subject to corporate income tax (impôt sur les sociétés, IS) pays each year the higher of IS and the CM, calculated at 0.25% of turnover and certain income items, with a minimum of 3,000 MAD, even in the event of a loss. New companies are exempt for the first 36 months of operation, up to a limit of 60 months after their incorporation.
The essentials in 6 points
In shortLegal framework: Article 144 of the CGI 2026
Base: turnover excluding VAT, other operating income, financial income (excluding dividends), subsidies and donations received
Rates: 0.25% (standard rate); 0.15% for certain products with regulated prices; 6% for certain liberal professions subject to IR
Minimum: 3,000 MAD per financial year for companies, due even in the event of a loss; the company pays the higher of IS and CM, with no carry-forward of the excess
Exemption: first 36 months of operation, at the latest until the 60th month following incorporation
Payment: 4 instalments of 25% (Article 170) and adjustment within 3 months following the year-end (Article 20)
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 chartered accountant (expert-comptable) before making any decision. Charikaty provides experts to support you: contact us for free advice.
Since the 2016 Finance Law, the excess of CM over IS can no longer be offset against IS for subsequent financial years.
What is the minimum contribution and who pays it?
A minimum tax on turnover
The Minimum Contribution is the minimum tax that every company subject to IS must pay, even when it makes no profit. It is assessed by reference to turnover and certain income items, not to taxable income. It also applies to taxpayers subject to IR in respect of professional income (actual net income or simplified net income regimes), with a minimum of 1,500 MAD.
The objective is twofold:
- Ensure a stable budgetary yield, including for loss-making companies or companies with low profits
- Encourage taxpayers to accurately declare their results (the CM constitutes a floor that is difficult to circumvent)
Interaction with IS
The company calculates in turn:
- The IS on taxable income at the applicable rate (Article 19 of the CGI: in 2026, 20% if net profit is below 100 million MAD, 35% above that, 40% for the financial sector, see IS rates in Morocco in 2026)
- The CM on turnover and taxable revenue (Article 144 of the CGI)
It pays the higher of the two amounts. If the CM exceeds the IS, the company pays the CM and the excess is permanently retained by the Treasury: the 2016 Finance Law abolished the mechanism for offsetting this excess against IS for subsequent financial years.
How is the minimum contribution calculated (base, rates, minimum)?
Components of the tax base
In accordance with Article 144 of the CGI, the CM base consists, excluding VAT, of:
- Turnover (sales of goods and services) and other operating income
- Financial income, excluding income from shares and parts sociales (dividends) and similar income
- Subsidies and donations received from the State, local authorities and third parties
Proceeds from the disposal of fixed assets are excluded from the base.
Applicable rates
| Rate | Activities concerned |
|---|---|
| 0.25% | All activities (standard rate since the 2023 Finance Law) |
| 0.15% | Sales of products with regulated prices: petroleum products, gas, butter, oil, sugar, flour, water, electricity, medicines |
| 6% | Liberal professions subject to IR (lawyers, doctors, architects, notaries, etc.); this rate does not apply to companies subject to IS |
The 2023 Finance Law, which also launched the convergence of IS rates 2023-2026, made 0.25% the standard CM rate.
Applicable minimum
The amount of the CM cannot be less than 3,000 MAD per financial year for companies (1,500 MAD for taxpayers subject to IR), even if applying the rate to the base gives a lower result.
How much does a company pay depending on its turnover and results?
Example 1: CM > IS
| Item | Amount |
|---|---|
| Turnover excl. VAT | 4,000,000 MAD |
| Taxable income | 40,000 MAD |
| CM = 4,000,000 × 0.25% | 10,000 MAD |
| IS = 40,000 × 20% | 8,000 MAD |
| Tax due = max(CM; IS) | 10,000 MAD (the 2,000 MAD difference cannot be carried forward) |
Example 2: IS > CM
| Item | Amount |
|---|---|
| Turnover excl. VAT | 2,000,000 MAD |
| Taxable income | 500,000 MAD |
| CM = 2,000,000 × 0.25% | 5,000 MAD |
| IS = 500,000 × 20% | 100,000 MAD |
| Tax due = max(CM; IS) | 100,000 MAD |
Example 3: Loss-making company
| Item | Amount |
|---|---|
| Turnover excl. VAT | 1,600,000 MAD |
| Taxable income | Loss of 50,000 MAD |
| CM = 1,600,000 × 0.25% | 4,000 MAD |
| IS | 0 (loss) |
| Tax due = max(CM; IS) | 4,000 MAD |
Example 4: Applying the 3,000 MAD minimum
| Item | Amount |
|---|---|
| Turnover excl. VAT | 400,000 MAD |
| Theoretical CM = 400,000 × 0.25% | 1,000 MAD |
| Statutory minimum | 3,000 MAD |
| CM applied | 3,000 MAD |
How does the exemption for the first 36 months work?
Scope and conditions (Article 144 of the CGI)
Companies, with the exception of public service concession companies, are exempt from the CM for the first 36 months following the date on which they begin operations. In any event, this exemption ends on expiry of the first 60 months following the company's date of incorporation.
Key features:
- The exemption is automatic provided that the company is duly incorporated and has filed its declaration of existence (déclaration d'existence) with the DGI (Article 148 of the CGI)
- The starting point is the actual start of operations (first transaction), not mere registration in the RC
- During the exemption, the company only pays IS if it makes a profit; in the event of a loss, no tax is due, but filing the tax return (déclaration du résultat fiscal) remains mandatory
- At the end of the period, the CM becomes payable again under the ordinary rules
| Company incorporated in January 2026 | End of the CM exemption |
|---|---|
| Operations started in January 2026 | December 2028 (36 months) |
| Operations started in January 2029 | December 2030 (cap of 60 months after incorporation, i.e. only 24 months of exemption) |
Interaction with the five-year Professional Tax exemption
The CM (a State tax on turnover, Article 144 of the CGI) must not be confused with the Professional Tax (taxe professionnelle, a local tax on rental value, Law 47-06). The two exemptions are separate and cumulative (see the 5-year professional tax exemption):
| Exemption | Duration | Reference text |
|---|---|---|
| Minimum Contribution | 36 months of operation, at the latest 60 months after incorporation | Article 144 of the CGI 2026 |
| Professional Tax (formerly the patente) | 5 years from the year in which activity begins | Article 6-II-1° of Law 47-06 |
How and when should the minimum contribution be paid?
Four provisional instalments (Article 170 of the CGI)
The tax due (IS or CM) is paid in 4 provisional instalments, each equal to 25% of the tax due for the last closed financial year. The instalments are paid before the expiry of:
- the 3rd month following the start of the financial year (1st instalment)
- the 6th month (2nd instalment)
- the 9th month (3rd instalment)
- the 12th month (4th instalment)
In the absence of a reference financial year, a new company only pays its first instalments from its second financial year.
Adjustment
At the year-end, the company files its tax return within 3 months following the year-end (Article 20 of the CGI) and makes the adjustment (régularisation):
- If the instalments paid are lower than the tax due (the higher of IS and CM), the balance is paid spontaneously
- If they are higher, the excess is offset against the following instalments, with any remaining balance being refunded
Can the excess minimum contribution be recovered?
Before 2016, the portion of CM that exceeded IS constituted a credit that could be offset against IS for the following three financial years. The 2016 Finance Law abolished this mechanism for financial years beginning on or after 1 January 2016:
- CM paid in excess of IS is permanently retained by the Treasury
- It can neither be carried forward, nor offset against IS for subsequent financial years, nor refunded
- Overpayments (instalments exceeding the tax due), on the other hand, can still be offset against the following instalments
In practice, for a company that remains only marginally profitable over time, the CM therefore represents a real tax cost: it must be included in the budget as soon as the exemption period ends.
What penalties apply for late payment or late filing?
Non-payment or late payment of the CM or of the instalments results, under Article 208 of the CGI, in a 10% penalty and a 5% surcharge for the first month of delay, then 0.5% per additional month or part of a month. Late filing or failure to file the tax return also gives rise to the surcharges under Article 184 of the CGI, and additional penalties apply in the event of fraudulent practices.
How can you anticipate the minimum contribution in your budget?
- Anticipate the end of the exemption (36th month of operation or 60th month after incorporation) in the budget
- Pay the instalments before the end of the 3rd, 6th, 9th and 12th months to avoid penalties
- Document the starting point of operations (first invoices, contracts, first commercial transactions)
- Compare IS and CM every year: CM paid in excess can no longer be recovered
- Keep supporting documents for 10 years (Article 211 of the CGI)
- Coordinate with tax incentives for setting up a company: ZAI (Law 19-94), CFC (Decree-Law No. 2-20-665), Investment Charter (Framework Law 03-22)
How does Charikaty simplify managing the minimum contribution?
To manage the minimum contribution properly, here is what you need: a duly incorporated company that has filed its declaration of existence, a documented start-of-operations date for the 36-month exemption, then the annual calculation of the CM, the instalments and the adjustment. With Charikaty, you do everything online. Charikaty is a private Moroccan legal-tech platform: we set up your company 100% online and put in place its first tax obligations (declaration of existence, IF, ICE, professional tax). With our accounting partners, our accounting service monitors the date on which operations begin, which determines the 36-month exemption, then the calculation of the CM, the planning of instalments (Article 170) and the annual adjustment (Article 20).
More than 250 companies have already been set up with Charikaty.
FAQ: Minimum Contribution
What are the minimum contribution rates?
The minimum contribution rates are 0.25% for activities in general, 0.15% for sales of certain products with regulated prices (petroleum products, gas, butter, oil, sugar, flour, water, electricity, medicines) and 6% for certain liberal professions subject to IR.
Does the minimum contribution have a minimum amount?
Yes, the minimum contribution cannot be less than 3,000 MAD per financial year for companies (1,500 MAD for taxpayers subject to IR), an amount due even in the event of a loss.
How long does the minimum contribution exemption last for a new company?
A newly formed company is exempt from the minimum contribution for 36 months from the start of operations, without exceeding 60 months after incorporation (Article 144 of the CGI). Public service concession companies are excluded.
If the minimum contribution exceeds IS, what happens to the excess?
The excess of minimum contribution over IS is permanently lost: since the 2016 Finance Law (financial years beginning on or after 1 January 2016), it can no longer be offset against IS for subsequent financial years.
How is the minimum contribution paid?
The minimum contribution is paid in 4 instalments of 25% of the tax due for the previous financial year (Article 170 of the CGI), with an adjustment within 3 months following the year-end (Article 20 of the CGI), by electronic payment on SIMPL.
Does the auto-entrepreneur pay the minimum contribution?
No. The auto-entrepreneur (Law 114-13) pays a final flat-rate IR (IR libératoire) of 0.5% or 1% of turnover collected; they are subject neither to IS nor to the minimum contribution.
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