Morocco

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

Since January 1st 1996, corporate income tax rate is 35% (the former rate of 39.6% continues to apply to insurance companies and to banking and financial institutions).
Non resident companies can, under certain conditions, opt for an alternative tax at the rate of 8% of the amount of their contract.
Whatever the taxable income is, the company is subjected to a legal minimum tax of 1,500 MDA or 0.5% of annual turnover.

   
Tax rate on long-term capital gains Capital gains are taxed at the rate of 35%.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies A withholding tax whose rate amounts to a maximum of 10% concerns dividends.
   
Tax rate on branches Branches are taxed in the same way as the other companies.




Income tax

Fiscal year The fiscal year begins on January 1st and ends on December 31st of the same year.
   
Income tax rate The General Income Tax (IGR), introduced in 1989, was replaced by the income tax (IR) since January 1st, 2006. Its progressive rate varies from 0% to 44%. The taxable global income is established by one or several net incomes corresponding to the various income brackets subjected to the General Income Tax. The annual statement of the global income must be handed to the fiscal administration before May 1st of every year.
To 18,000 MAD 0%
From 18,001 to 24,000 MAD 13%
From 24,001 to 36,000 MAD21%
From 36,001 to 60,000 MAD35%
Beyond 60,000 MAD44%
   
Tax deductions or other allowances There are several types of deductions attributed to taxpayers in Morocco. For further details concerning the nature of the deductions, contact the fiscal administrations of every region.



VAT rates

Standard rates 20%
   
Reduced rates There are three reduced rates of 7, 10 and 14% according to products and services affected.



Other important taxes


Name of tax
Rate
Registration duty, Stamp duty, Tax on insurance contracts, Tax on professional training, Tax on undeveloped urban land, Urban tax.  
 


 

Accounting

Introduction
The introduction in Morocco of the French accounting plan in 1957, more precisely of its rules of evaluation, was made by the order of the sub-Secretary of State of Finances n087665 of March 05, 1965 modified and completed by order of the Minister of finances n790-69 of 31/12/1969. Since then, the Moroccan economy has evolved and this evolution has given birth to a common accounting and financial language in order to develop more economic relations between companies and the rest of the world. A reform was necessary and has been materialized in 1992 by the application of the general code of the accounting normalization.


General accounting principles
The structure of accounts in Morocco is inspired by the French model.

Obligations and publications
Under reserve of the provisions foreseen in articles 19,20,21, people subjected to the present law have to establish annual statements in the close of the fiscal year, on the foundation of the accounting recordings and inventory redrawn in the account book, the and the inventory book.
These statements include the balance sheet, the profit and loss account, the cash flow statement, the funds statement and some additional information.

Certification and auditing
The balance sheet describes separately the assets and liabilities of the company.

Professionals and representative organizations
The Ministry of Finance.



Useful links
Ministry of Finance
Customs and Indirect Taxes Administration

Last modified in January 2007
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