What taxes does a new company pay in Morocco in 2026?
In 2026, a new company in Morocco pays corporate income tax (IS) at 20% of its net taxable profit (35% from 100 million MAD), VAT at the standard rate of 20% (10% or 7% for certain transactions), the professional tax (after its exemption period) and the municipal services tax on the rental value, as well as CNSS and AMO contributions and the IR withheld on salaries. Several start-up exemptions reduce the burden of the first financial years: minimum contribution exempt for 36 months and professional tax for 5 years. There is, however, no general IS exemption for new businesses.
The essentials in 6 points
In shortIS: 2026 rate of 20% if net taxable profit is below 100 million MAD, 35% above that, 40% for credit institutions and insurance companies (Article 19 of the CGI); no general start-up exemption
Minimum Contribution (CM): 0.25% of turnover and income (0.15% for price-regulated products), minimum 3,000 MAD (Article 144 of the CGI); exempt for 36 months for newly created companies
VAT: 20% (standard rate), 10% and 7% (reduced rates); exports exempt with right to deduct (Articles 87 to 125 of the CGI); quarterly returns for new taxpayers, monthly once the previous year's taxable turnover reaches 1 million MAD (Article 108)
Professional Tax (taxe professionnelle, TP): 10%, 20% or 30% of the rental value (and not of turnover) depending on the class (Law 47-06); exempt for 5 years (Article 6 of Law 47-06)
CNSS + AMO + vocational training: 21.09% employer share and 6.74% employee share, i.e. 27.83% in total, with social benefits capped at 6,000 MAD/month (Dahir of 27 July 1972, Law 65-00)
Salary IR: withheld at source by the employer according to the progressive scale from 0% to 37% (Article 73 of the CGI); dividends: withholding tax of 11.25% on 2026 distributions
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 before making any decision. Charikaty provides experts to support you: contact us for free advice.
These taxes fall under profit taxation (IS and minimum contribution), indirect tax (VAT), local taxation, social security contributions and tax on employment income. The General Tax Code (Code Général des Impôts, CGI 2026), Law 47-06 (taxation of local authorities), Law 65-99 (Labour Code) and the Dahir of 27 July 1972 (CNSS) form their legal basis.
What taxes does a new company pay?
Summary table
| Tax / contribution | Base | 2026 rate | Start-up exemption | Text |
|---|---|---|---|---|
| IS | Net taxable profit | 20% / 35% / 40% | No general exemption | Article 19 of the CGI |
| CM | Turnover + ancillary income | 0.25% (0.15% regulated products), min. 3,000 MAD | 36 months | Article 144 of the CGI |
| VAT | Taxable transactions | 20% / 10% / 7% | Capital goods of the first 36 months exempt | Articles 87 to 125 of the CGI |
| TP | Rental value | 10% / 20% / 30% depending on the class | 5 years | Law 47-06 |
| Municipal services tax | Rental value | 10.5% (urban) / 6.5% (peripheral) | No | Law 47-06 |
| CNSS, AMO, TFP | Gross salary (social benefits capped at 6,000 MAD) | 21.09% employer + 6.74% employee | No (except Tahfiz and Idmaj) | Dahir 1-72-184; Law 65-00 |
| Salary IR | Net taxable salary | Progressive scale 0% to 37% | No (except Tahfiz) | Article 73 of the CGI |
| Withholding tax (RAS) on dividends | Dividends distributed | 11.25% in 2026 (10% from 2027) | No | Articles 19-IV and 158 of the CGI |
As soon as it is registered in the Commercial Register, the company receives from the DGI its tax identification number (identifiant fiscal, IF), its ICE and its professional tax identifier, and must file its declaration of existence within 30 days (Article 148 of the CGI). All returns and all payments are then made electronically on the DGI's SIMPL portal.
What is the corporate income tax (IS) rate?
2026 rates (Article 19 of the CGI)
Following the completion of the convergence initiated by the Finance Law LF 2023, the IS rates for the 2026 financial year are as follows. The rate is proportional: the rate of the bracket reached applies to the entire profit. Calculation examples are given in corporate income tax (IS) rates in Morocco in 2026.
| Category | 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, Bank Al-Maghrib, CDG, insurance and reinsurance companies | 40% |
Special regimes: ZAI (Law 19-94) and CFC status (Decree-Law No. 2-20-665, ratified by Law No. 70-20, which repealed and replaced Law No. 44-10) give entitlement to a full IS exemption for 5 years, then a rate of 20%, subject to conditions of establishment or status.
Filing and payment
IS is declared with the tax return package (liasse fiscale) within 3 months following the year-end (Article 20 of the CGI) and is paid in 4 instalments of 25% of the IS (or CM) of the previous financial year, before the end of the 3rd, 6th, 9th and 12th months (Article 170 of the CGI), none being due in the first financial year; the balance is paid upon filing, any excess being offset against subsequent instalments. This calendar and online filing on SIMPL-IS are detailed in the tax obligations of a new company.
No general 5-year exemption for new companies
Contrary to a widespread belief, there is no full 5-year IS exemption for newly created companies under ordinary law. IS is due from the first profitable financial year at the rate set by Article 19. Losses from the first financial years can, however, be carried forward against the profits of the following 4 financial years (with no time limit for the portion corresponding to depreciation).
What is the minimum contribution and when is it due?
Mechanism (Article 144 of the CGI)
The CM is the floor tax: the company pays the higher of the IS calculated on profit and the CM calculated on turnover and ancillary income, financial income and subsidies:
| Rate | Activities concerned |
|---|---|
| 0.25% | Standard rate, applicable to activities in general |
| 0.15% | Transactions in price-regulated products (hydrocarbons, gas, butter, oil, sugar, flour, water, electricity, medicines) |
Minimum: 3,000 MAD per financial year, due even in the event of a loss or zero turnover.
36-month exemption
Newly created companies benefit from a CM exemption for the first 36 months following the start of their operations (Article 144 of the CGI), and at the latest until the expiry of a period of 60 months after their incorporation. The exemption is automatic. During this period, a loss-making company therefore pays no tax on its results. The detailed calculation, with its base and its minimum, is explained in the minimum contribution in Morocco.
What are the VAT rates and who is liable for VAT?
Rates (Articles 98 and 99 of the CGI)
The reform initiated by the LF 2024 reduced VAT to two main rates in 2026, the 14% rate having disappeared:
| Rate | Cases |
|---|---|
| 20% | Standard rate (including electricity since 2026) |
| 10% | Catering, hotels, transport, banking transactions, water, refined sugar, etc. |
| 7% | Non-exempt medicines, certain basic products |
| Exemption with right to deduct | Exports of goods and services (Article 92-I-1°), capital goods acquired in the first 36 months |
Filing and chargeable event (Articles 95, 108, 110 and 111 of the CGI)
New taxpayers, seasonal or occasional activities and taxpayers whose taxable turnover for the previous year is below 1,000,000 MAD file VAT returns quarterly; from that threshold, and for persons with no establishment in Morocco, returns are monthly (Article 108), with payment on SIMPL-TVA before the end of the month following the period (Articles 110 and 111). This filing calendar is detailed in the tax obligations of a new company.
The chargeable event is, by default, collection of the price; the company may opt for the debit regime (régime des débits) (Article 95). VAT credit is carried forward to subsequent returns and may be refunded in the cases provided for in Article 103 (exporters, capital goods, cessation).
Liability
Liability for VAT depends on the nature of the transactions carried out (Article 89 of the CGI). Commercial companies, service providers and wholesalers are liable from the first dirham; retailers are only liable from 2,000,000 MAD in turnover; small manufacturers and small service providers carrying on a mainly manual activity are exempt up to 500,000 MAD (Article 91-II-1°). Exemptions are provided for in Articles 91 (without right to deduct) and 92 (with right to deduct). Since 1 July 2024, customers liable for VAT withhold at source part of the VAT on services (75% of the VAT if the service provider presents a certificate of tax compliance (attestation de régularité fiscale) less than 6 months old, 100% otherwise): a new company therefore has an interest in obtaining this certificate quickly on SIMPL.
How are the professional tax and the municipal services tax calculated?
Base and rates (Law 47-06)
| Item | Detail |
|---|---|
| Base | Annual rental value of the premises, fixtures, equipment and tools (and not turnover) |
| Rates | 10% (class 3, C3), 20% (class 2, C2), 30% (class 1, C1) according to the schedule of activities (nomenclature) |
| Minimum duty | Fixed amount per class and per municipality (urban or rural) where the calculation based on the rental value gives a lower result |
| Collection | By tax roll issued by the DGI, payable within 2 months following the date the roll is put into collection |
The municipal services tax (taxe de services communaux) (Law 47-06), based on the same rental value at the rate of 10.5% in urban areas and 6.5% in peripheral areas, is collected under the same conditions; it is not covered by the five-year TP exemption. The principle, the classes and the payment of the TP are detailed in the professional tax in Morocco.
Five-year exemption (Article 6 of Law 47-06)
Any business carrying on a professional activity for the first time is exempt from TP for 5 years from the year in which activity begins (Article 6-II-1° of Law 47-06). The exemption is automatic provided that the registration declaration (Article 12 of Law 47-06) is filed within the time limits; the TP identifier is assigned by the DGI as part of the company's registration.
How is IR on salaries calculated?
IR on salaries is withheld at source by the employer, paid to the DGI within the following month and calculated according to the progressive scale of Article 73 of the CGI; every year, the employer files the return of wages and salaries before 1 March. The scale in force is detailed in our guide to the cost of an employee in Morocco.
When must these taxes be declared and paid?
These taxes follow a precise calendar: declaration of existence within 30 days of incorporation (Article 148 of the CGI); VAT return every month or every quarter; declaration of salaries, payment of social security contributions and remittance of the IR withheld every month; tax return, IS balance and, where applicable, CSS within 3 months of the year-end (Articles 20 and 270 of the CGI); professional tax and municipal services tax upon the notice of collection, after the exemption period; annual return of salaries before 1 March; declaration of dividends distributed the previous year before 1 April. The filing calendar of a new company is detailed in the tax obligations of a new company in Morocco.
Which start-up exemptions apply?
| Regime | Duration | Text | Nature |
|---|---|---|---|
| CM | 36 months of operation (at most 60 months after incorporation) | Article 144 of the CGI | Automatic |
| TP | 5 years | Article 6 of Law 47-06 | Automatic |
| VAT on capital goods | 36 months | Article 92 of the CGI | On DGI certificate |
In addition, on application, there are the Tahfiz and Idmaj hiring incentives (24 months, Articles 57-16° and 57-20° of the CGI) and the ZAI (Law 19-94) and CFC (Decree-Law 2-20-665) regimes, which exempt from IS for 5 years and then apply 20%: these incentives are presented in the tax incentives for setting up a business.
Which tax best practices should you adopt from formation?
- Follow an annual tax calendar so as not to miss any deadlines
- Spread the provision for VAT and social security contributions on a monthly basis
- Anticipate IS instalments (Article 170) from the second financial year
- Optimize VAT through deductions and the refund of credits (Articles 101 and 103) and apply for the exemption of capital goods for the first 36 months
- Obtain the certificate of tax compliance to limit the VAT withheld at source by your customers
- Keep supporting documents for 10 years (Article 211 of the CGI)
- Monitor cash flow at the time of the switchover for the CM (end of the 36 months) and the TP (end of the 5 years)
What penalties apply for late filing or late payment?
- Late or incomplete return: surcharge of 5% (delay of 30 days or less), 15% beyond that, 20% in the event of ex officio assessment (imposition d'office) (Article 184 of the CGI)
- Late payment: penalty of 10% (reduced to 5% if payment is made within 30 days), surcharge of 5% for the first month of delay then 0.5% per additional month or part of a month (Article 208 of the CGI)
- CNSS: late payment surcharges on contributions not paid on time
- Additional penalties in the event of fraud or delaying tactics
How does Charikaty simplify start-up taxation?
To get off to a good start, you need a registered company, its tax identifiers and rigorous follow-up of each tax. Charikaty, a private Moroccan legal-tech platform, sets up your company 100% online. Law No. 88-17 on the electronic creation of companies makes it possible to complete all the formalities remotely: we obtain your negative certificate from OMPIC, draft your articles of association and have them signed electronically, file your registration application with the commercial court registry and deliver your Commercial Register extract together with your IF, your ICE and your professional tax identifier issued by the DGI, and your CNSS affiliation. The start-up exemptions (CM 36 months, TP 5 years) apply from registration, with no additional steps. For keeping your tax calendar and your IS, VAT, CNSS and IR returns, we put you in touch with chartered accountants (experts-comptables) registered with the OEC through our accounting service.
More than 250 companies have already been set up with Charikaty.
FAQ: Taxes for a new company
Is IS exempt for 5 years for a new company?
No, a new company does not benefit from any general IS exemption under ordinary law: IS is due at the rate of 20% of net taxable profit (Article 19 of the CGI), 35% from 100 million MAD. Only the ZAI and CFC regimes offer a 5-year exemption followed by a rate of 20%.
What are the automatic start-up exemptions?
A new company automatically benefits from the exemption from CM for 36 months (Article 144 of the CGI) and from professional tax for 5 years (Article 6 of Law 47-06).
What are the VAT rates in Morocco?
VAT applies at the standard rate of 20% and at the reduced rates of 10% and 7%, the 14% rate having been abolished by the LF 2024 reform. Exports are exempt with the right to deduct (Article 92 of the CGI).
How is the Professional Tax calculated?
The professional tax is calculated on the rental value of the premises and means of production (Law 47-06), at rates of 10%, 20% or 30% depending on the class, with a minimum duty per municipality. It is not calculated on turnover.
What social security contributions does an employer pay?
An employer bears 21.09% in employer charges (social benefits, AMO, family allowances, TFP) and withholds a 6.74% employee share on gross salary, with social benefits capped at 6,000 MAD/month. Salaries of up to 10,000 MAD for the first 10 CDIs may benefit from Tahfiz.
Does a company with no employees and no activity have to pay anything?
During its first 36 months, a company with no profit pays neither IS nor CM; it must nevertheless file its returns (tax return, VAT) on time to avoid surcharges. After 36 months, the minimum CM of 3,000 MAD is due even without any turnover.
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