Comparative Guides

Welcome to Mondaq Comparative Guides - your comparative global Q&A guide.

Our Comparative Guides provide an overview of some of the key points of law and practice and allow you to compare regulatory environments and laws across multiple jurisdictions.

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4. Results: Answers
Corporate Tax
1.
Basic framework
1.1
Is there a single tax regime or is the regime multi-level (eg, federal, state, city)?
Morocco

Answer ... There is a single tax regime, which applies to all companies that are subject to tax in Morocco.

For more information about this answer please contact: Rachid Mejdoubi from CMS Francis Lefebvre Maroc Conseil juridique et fiscal
1.2
What taxes (and rates) apply to corporate entities which are tax resident in your jurisdiction?
Morocco

Answer ... Corporate income tax: Corporate income tax is calculated according to the following progressive scale.

Net profit amount Rates
Less than or equal to MAD 300,000 10%
From MAD 300,001 to MAD 1 million 17.5%
More than MAD 1 million 31%

Business tax: Business tax is based on the annual rental value. The rates vary according to the nature of the activity carried out, as follows.

Rank 3 10%
Rank 2 20%
Rank 1 30%

For more information about this answer please contact: Rachid Mejdoubi from CMS Francis Lefebvre Maroc Conseil juridique et fiscal
1.3
Is taxation based on revenue, profits, specific trade income, deemed profits or some other tax base?
Morocco

Answer ... Corporate income tax is calculated on the basis of net taxable profits, while business tax is based on the amount of the annual rental value.

For more information about this answer please contact: Rachid Mejdoubi from CMS Francis Lefebvre Maroc Conseil juridique et fiscal
1.4
Is there a different treatment based on the nature of the taxable income (eg, gains on assets as opposed to trading income or dividend income)?
Morocco

Answer ... The nature of the taxable income may have an impact on the tax rates. Some products are subject to withholding tax, such as income from shares (15%) and fixed-income investment products (20%); while trading income is taxed according to the progressive scale set out in question 1.2.

For more information about this answer please contact: Rachid Mejdoubi from CMS Francis Lefebvre Maroc Conseil juridique et fiscal
1.5
Is the regime a worldwide or territorial regime, or a mixture?
1.6
Can losses be utilised and/or carried forward for tax purposes, and must these all be intra-jurisdiction (ie, foreign losses cannot be utilised domestically and vice versa)?
Morocco

Answer ... A deficit in a fiscal year may be deducted from the profits in the following fiscal year. In the absence of profits or in the event of insufficient profits to allow for such deduction, the deficit or the balance of deficit may be deducted from the profits in subsequent accounting periods until the fourth year following the financial year of deficit.

Losses incurred by institutions that are not subject to tax in Morocco cannot be deducted from the Moroccan taxable base.

For more information about this answer please contact: Rachid Mejdoubi from CMS Francis Lefebvre Maroc Conseil juridique et fiscal
1.7
Is there a concept of beneficial ownership of taxable income or is it only the named or legal owner of the income that is taxed?
Morocco

Answer ... The concept of beneficial ownership does not exist in Morocco; only the legal owner of the income is taxed.

For more information about this answer please contact: Rachid Mejdoubi from CMS Francis Lefebvre Maroc Conseil juridique et fiscal
1.8
Do the rates change depending on the income or balance-sheet size of the taxpayer?
Morocco

Answer ... Yes, companies in Morocco are subject to tax on a progressive scale, whereby the rate of corporate tax varies according to the amount of taxable profits.

For more information about this answer please contact: Rachid Mejdoubi from CMS Francis Lefebvre Maroc Conseil juridique et fiscal
1.9
Are entities other than companies subject to corporate taxes (eg, partnerships or trusts)?
Morocco

Answer ... Yes, the following entities are also subject to corporate income tax:

  • public institutions that operate on a for-profit basis;
  • associations and similar bodies;
  • funds created by law or by convention which do not have legal personality and are managed by public or private law bodies; and
  • general partnerships and limited partnerships incorporated in Morocco and comprising only natural persons, as well as joint ventures, which are liable to corporation tax upon irrevocable option.

For more information about this answer please contact: Rachid Mejdoubi from CMS Francis Lefebvre Maroc Conseil juridique et fiscal