Morocco Tax

Morocco Taxation Overview

TAXES

PAYABLE

GENERAL REGIME

 The Moroccan taxation system consists of direct and indirect taxes.  Moroccan corporations are subject to a unitary tax system called the corporate tax.  Individuals, regardless of nationality or activity, who have their habitual residence in Morocco are subject to a personal income tax on their worldwide income on a progressive scale between 12% and 40%.

 Individuals who do not have their habitual residence in Morocco are subject to tax only on Moroccan-source income.

The system contains a package of incentives designed to encourage both Moroccan and foreign investors.

CORPORATE INCOME TAX

 The normal rate is 30% with a 37% rate applying to leasing companies and credit institutions.  Foreign contractors carrying out engineering, construction or assembly projects relating to industrial or technical installations may opt to be taxed at a rate of 8% calculated on the total contract price net of VAT and similar taxes.

 Company are always subjected to a legal minimum tax of 1500 MAD or 0.5% of the annual turnover.

 The LM is based on turnover, income from interest, subsidies, bonuses or donations received.

 The LM is not payable by companies during their first 36 months of operation.

CORPORATE INCOME TAX

 Companies are taxed on the difference between their trading income

and expenditure.  Companies (both resident and nonresident) are generally subject to corporate tax only on income generated from activities carried on in Morocco.  Foreign corporations are subject to taxation on income arising in Morocco if they have, or are deemed to have, a permanent establishment in Morocco.  A company is resident in Morocco if it is incorporated there or its place of effective management is in Morocco.

BRANCH REMITTANCE TAX

 A 10% branch remittance tax is imposed on profits remitted to the head office.  The Moroccan sourced income of Moroccan branches of...