Morocco · Tax & Audit

Morocco abolished the progressive corporate income tax (IS) from the 2022 Finance Law, moving to a proportional system (single rate by profit bracket). 2025 is a transition year; the final statutory rates effective 2026-01-01: general companies 20%, profits ≥ MAD 100 million 35%, banks/insurance 40%. A minimum contribution (contribution minimale) of 0.25% also applies. Standard VAT is 20% (reduced 14%/10%/7%). Free zones (ZAI) enjoy a 5-year CIT exemption and lifetime VAT/customs duty exemptions. Filings mostly use the calendar year; CIT is prepaid quarterly with a final settlement within 3 months after the fiscal year end. Chinese capital must note transfer pricing and CFC rules, withholding on non-residents (dividends 10%, interest 10%, royalties/services 10%), and the impact of the new IGOC 2026 foreign-exchange regulations on cross-border funds.

Key points

CIT proportional system: from 2026 statutory rates — general 20%; portion of profits ≥ MAD 100,000,000 35%; credit institutions/insurance/reinsurance 40% (2025 transition: 22.75% / 34% / 39.25%).
Minimum contribution (contribution minimale): 0.25% since 2023; still payable when profits are low, forming a tax floor.
VAT: standard 20%, reduced 14% (some goods), 10% (hotels etc.), 7% (basic consumer goods); exports zero-rated.
WHT: dividends to non-residents 10% (reduced from 13.75% progressively to 10% by 2026 under the 2023 Finance Law), interest to non-residents 10%, royalties/service fees to non-residents 10%; dividends between resident companies exempt.
Finance Law 2025 widened the 'company' definition (public institutions, associations, funds, economic interest groups, etc. all pay IS); SME income tax doubles from 10% to 20% in 2026.
Free zones (ZAI): 5-year CIT exemption, then lower rates (e.g., 8.75% in some cases); lifetime VAT/customs duty exemptions; no WHT on non-resident dividends; free foreign exchange. Products 85%+ exported.
Filings: most companies use the calendar year (1/1–12/31); CIT prepaid quarterly (March/June/September/December, each 25% of prior-year tax), final settlement within 3 months after the fiscal year end; all online via SIMPL.

Procedure

Obtain the ICE tax number and activate the corporate tax file on SIMPL (see incorporation dimension).
Prepay CIT quarterly (each quarter 25% of the prior-year liability).
Complete the annual return and final settlement within 3 months after the fiscal year end, paying the balance.
Register and file VAT (at threshold); file monthly/quarterly.
Withhold and file WHT on dividends/interest/royalties paid to non-residents.
Retain books and records for tax audits; free-zone companies use separate exemption filing flows.

Hard requirements

Establish a tax file on SIMPL and file on time
CIT prepaid quarterly and settled annually
Register and file VAT at threshold
Withhold and file WHT on payments to non-residents
Free-zone companies maintain export ratios to preserve exemption status

Costs

CIT: general 20% (from 2026), high-profit bracket 35%, financial institutions 40%VAT: standard 20%Late penalties: late filing 5% (within 30 days)/15% (over 30 days)/20% (non-filing); VAT/WHT non-payment 20%Professional accountant (Expert-Comptable) service fees separate⏱ ⏱ Timeline：Quarterly prepayments follow the quarter; annual settlement within 3 months after the fiscal year end.

⚠ Common risks

Late filing/payment: 5%/15%/20% surcharge tiers; non-filing 20%
Free-zone status loss (insufficient exports) causes back-tax
Transfer pricing/CFC non-compliance triggers adjustments and fines
Failure to withhold WHT on non-resident payments is collected and fined
Tax bracket misjudgment (filing high-profit companies at 20%) causes underpayment audits

Handbook

📘 Step-by-Step Handbook (with owner / timeline / cost / penalties)

Applies to：Chinese companies establishing and operating in Morocco (SARL/SA/branch/free zone); covers CIT, VAT, WHT filings, and settlement.

Prerequisites

Commercial registration completed with the ICE code (see incorporation dimension)
Tax file activated on the SIMPL platform
Fiscal year determined (mostly calendar year 1/1–12/31)
Licensed accountant (Expert-Comptable) engaged or a compliant finance team built
Free-zone companies confirmed exemption status and export ratio commitments

Step	Action	Owner	Timeline	Cost	Official form / system	Notes & penalties
1	Activate the SIMPL tax file. Establish the corporate tax file on the Tax Authority SIMPL platform with the ICE, confirm taxes (IS/TVA/withholding) and filing cycles; register VAT at threshold.	In-Morocco finance/accountant	Several working days after registration	No registration fee	SIMPL platform registration	ICE is the tax key and must match the RC. Penalty：Operating without a tax file is fined.
2	Quarterly CIT prepayment. Prepay CIT quarterly (March/June/September/December), each about 25% of the prior-year liability; the first year uses estimates or the minimum contribution (0.25%) when no prior-year data.	In-Morocco finance/accountant	Quarterly	The tax itself	SIMPL prepayment filing	From 2026 general rate 20% (profits < MAD 100 million); high-profit bracket 35%, financial institutions 40%. Penalty：Late prepayments incur surcharges (late filing 5%/15%, non-filing 20%).
3	Annual settlement. Complete the IS annual return and settlement within 3 months after the fiscal year end, paying the balance or claiming a refund; attach audited financial statements (per size).	In-Morocco finance/accountant	Within 3 months of the fiscal year end	Tax balance; audit fees (where applicable)	SIMPL annual filing; financial statements	Minimum contribution 0.25% is still payable when profits are low. Penalty：Late filing 5% (within 30 days)/15% (over 30 days), non-filing 20%.
4	VAT filing. Threshold companies file TVA monthly or quarterly (standard 20%, exports zero-rated); retain input deduction evidence. Free-zone companies' in-zone transactions are VAT-exempt but must still file to maintain deduction rights.	In-Morocco finance/accountant	Monthly/quarterly	The tax itself	SIMPL TVA filing	Reduced rates 14%/10%/7% apply by goods/service category. Penalty：VAT non-payment fined 20%.
5	Withhold WHT on payments to non-residents. Withhold 10% WHT on dividends/interest/royalties/service fees to non-residents (resident-to-resident dividends exempt) and file; for treaty (China-Morocco DTT) benefits, prepare beneficial-owner proof.	In-Morocco finance/accountant	At payment	The WHT amount	WHT filing and payment	From 2026 dividend WHT statutory 10% (progressively reduced from 13.75%). Penalty：Failure to withhold/file WHT is collected and fined.
6	Transfer pricing and CFC compliance. Related-party transactions must meet the arm's-length principle with TP documentation; note CFC rules. Group service fees/royalties must have commercial substance to avoid adjustments.	In-Morocco finance + Chinese parent group tax	Ongoing/annual	Compliance and documentation costs	TP documentation; group filings	The China-Morocco DTT provides treaty treatment; apply it proactively. Penalty：TP adjustments with additional tax and fines.
7	Free-zone exemption status maintenance. Free-zone (ZAI) companies: 5-year CIT exemption, lifetime VAT/customs duty exemptions, no WHT on non-resident dividends; maintain 85%+ product exports and file exemption returns with customs/tax verification on time.	In-Morocco finance/park operator	Ongoing	Operations investment	ZAI exemption filing; export ratio ledger	Insufficient exports lose exemptions and require back-tax. Penalty：Status mismatch triggers recovery of exemption-period taxes.

✅ Self-check list

⚠ Common pitfalls

Tax bracket misjudgment underpayment影响：High-profit (≥ MAD 100 million) companies filed at 20%; underpayment audited with additional tax and fines.规避：Apply CGI Art.19-I brackets (20%/35%/40%) accurately; re-verify near thresholds.

Late filing/payment影响：5%/15%/20% surcharge tiers; credit damage.规避：Build a filing calendar with SIMPL reminders; handle quarterly/annual nodes early.

Free-zone export ratio insufficient影响：Loses exemption status and must back-pay.规避：Set 85%+ export internal controls and retain export documents.

Missing WHT on non-resident payments影响：Collected and fined.规避：Build WHT checks into payment flows; keep beneficial-owner proof for treaty benefits.

Transfer pricing without documentation影响：Related-party adjustments with additional tax and fines.规避：Establish TP policies and documentation; related-party transactions have commercial substance.

VAT registration threshold misjudgment影响：Should-have-registered companies fined.规避：Register TVA once revenue reaches the threshold; do not delay.

📅 Ongoing post-incorporation obligations

File quarterly prepayments and annual IS settlement on time
File VAT monthly/quarterly
Withhold and file WHT on non-resident payments
Update transfer pricing documentation annually
Retain books and records per law (generally 10 years)
Free-zone companies maintain export ratios and exemption filings

🔗 Official portals

Moroccan Tax Authority SIMPL Moroccan Customs (Douanes)Economic and Commercial Office of the Moroccan Embassy in China (tax interpretation)

📎 Source：Moroccan General Tax Code (CGI); Finance Laws 2022/2023/2025; Tax Authority SIMPL platform; Economic and Commercial Office of the Moroccan Embassy in China tax interpretation (2025); Upsilon Consulting / Commenda Morocco corporate tax practice guides

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