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4. Results: Answers
Corporate Tax
2.
Special regimes
2.1
What special regimes exist (eg, for fund entities, enterprise zones, free trade zones, investment in particular sectors such as oil and gas or other natural resources, shipping, insurance, securitisation, real estate or intellectual property)?
Morocco

Answer ... The special tax regimes applicable in Morocco are outlined in the table below.

Tax regime Advantages
Free trade zones Exemption from corporate income tax for the first five years and taxation at a reduced rate of 8.75% for the following 20 years.
Casablanca Finance City Exemption from corporation tax for the first five years and taxation at a reduced rate of 8.75% after the expiry of the exemption period.
Exploitation of hydrocarbons Full exemption from corporation tax for a period of ten consecutive years from the date on which any exploitation concession is duly put into production.
Newly created industrial activities Industrial companies that carry out activities specified by regulation benefit from a full exemption from corporation tax for the first five years of exploitation.
Exports Companies that export products or services, excluding recovered metals, and generate export turnover benefit from a full exemption from corporate income tax on that turnover for a period of five years, and from taxation at a reduced rate of 17.5% upon expiry of this exemption.
Hotel companies Exemption from corporate income tax for five years and taxation at a reduced rate of 17.5% after the expiry of this exemption, for that part of their taxable base corresponding to their turnover in foreign currencies.
  • Craft enterprises whose production is the result of essentially manual work
  • Private educational and vocational training establishments
  • Sports companies
Taxation at a reduced rate of 17.5% for the first five years following the start of operations.
Farms with a turnover of MAD 5 million Exemption from corporate income tax for their agricultural income.
Agricultural operations Reduced corporate income tax for the first five years. (17.5%).
Exporting mining companies Reduced corporate income tax of 17.5%.

For more information about this answer please contact: Rachid Mejdoubi from CMS Francis Lefebvre Maroc Conseil juridique et fiscal
2.2
Is relief available for corporate reorganisations or intra-group transfers of companies and other assets? Please include details of any participation regime.
Morocco

Answer ... Under the special regime for mergers, merged or divested companies are not taxed at the time of the transaction on the net capital gain realised following the contribution of all fixed assets and equity securities, provided that certain formal conditions are met.

Under this special regime, the merger or division premium realised by the acquirer and corresponding to the capital gain on its participation in the merged or divested company is exempt from tax.

Capital gains resulting from the exchange of shares in the merged or divested company for shares of the acquirer, carried out in the context of merger or divestment transactions, are not taxable for natural or legal persons who are shareholders of the merged or divested company until such time as the shares are sold or withdrawn.

For more information about this answer please contact: Rachid Mejdoubi from CMS Francis Lefebvre Maroc Conseil juridique et fiscal
2.3
Can a taxpayer elect for alternative taxation regimes (eg, different ways to calculate the taxable base, such as revenue-based versus profits based or cash basis versus accounts basis)?
Morocco

Answer ... Moroccan companies are taxed on the basis of their profits. Non-resident successful tenderers of works, construction or assembly contracts can opt for flat-rate taxation (8%), based on the value of the contract excluding value added tax.

For more information about this answer please contact: Rachid Mejdoubi from CMS Francis Lefebvre Maroc Conseil juridique et fiscal
2.4
What are the rules for taxing corporates with different functional or reporting currency from that of the jurisdiction in which they are resident?
Morocco

Answer ... Transactions carried out in foreign currencies must be recorded in the financial statements at the exchange rate prevailing on the transaction date.

For more information about this answer please contact: Rachid Mejdoubi from CMS Francis Lefebvre Maroc Conseil juridique et fiscal
2.5
How are intangibles taxed?
Morocco

Answer ... Intangible assets are taxable for corporate income tax purposes as non-current income.

The capital gain or loss on the sale of intangible assets equates to the difference between the sale price and the cost price of the items.

For more information about this answer please contact: Rachid Mejdoubi from CMS Francis Lefebvre Maroc Conseil juridique et fiscal
2.6
Are corporate-level deductions available for contributions to pensions?
2.7
Are taxpayers from different sectors (eg, banking) subject to different or additional taxes or surtaxes?
Morocco

Answer ... Credit institutions and similar, and insurance and reinsurance companies, are subject to a tax rate of 37%.

For more information about this answer please contact: Rachid Mejdoubi from CMS Francis Lefebvre Maroc Conseil juridique et fiscal
2.8
Are there other surtaxes (eg, solidarity surtax, education tax, corporate net wealth tax, remittance tax)?
Morocco

Answer ... Companies that generate taxable profits of MAD 40 million or more are subject to social solidarity contributions at a rate of 2.5%. The taxable base corresponds to the taxable profit.

For more information about this answer please contact: Rachid Mejdoubi from CMS Francis Lefebvre Maroc Conseil juridique et fiscal
2.9
Are there any deemed deductions against corporate tax for equity?