Taxes - Accounting

Morocco

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Tax Rates | Accounting Rules

Tax Rates

Consumption taxes

Nature of the tax: Value Added Tax (VAT)
Tax rate: 20%
Reduced tax rate: There are three reduced rates of 7%, 10% and 14% according to the products and services concerned.
Basic food products, books and newspapers, certain loans and financial instruments are exempt from VAT.
Other consumption taxes: Domestic consumption taxes on alcohol, tobacco, sugar, oil products etc.

Corporate taxes

Tax rate

Normal rate	30%
Rate applying to leasing companies and credit institutions	37%
Possibility opened to Building and Public Works enterprises or Engineering enterprises	8% of their contract amount

Tax rate for foreign companies: VAT refund for nonresidents is possible under certain conditions. Access the Ministry of Economy and Finance website on fiscal issues.
Capital gains taxation: Long term capital gains are taxed in Morocco at the rate of 30%.
Main allowable deductions and tax credit: There are many deduction possibilities. For more information go to Invest in Morocco website Investments Management.
Other corporate taxes: A 6% registration duty and a 1% real estate tax is levied at the time a real estate is purchased.
A 3% registration duty is imposed on the sale of shares in non-listed companies.

Individual taxes

Tax rate

Income is taxed at progressive rates.	From 0 to 38%
up to MAD 30,000	0%
from MAD 30,001 to 50,000	10%
from MAD 50,001 to 60,000	20%
from MAD 60,001 to 80,000	30%
from MAD 80,001 to 180,000	34%
above 180,000	38%

Allowable deductions and tax credit: There are several types of deductions assigned to taxables in Morocco. To know the nature of all the deductions, consult the tax authorities of each region or of the central government.
Special expatriate tax regime: No special provisions.
However, Morocco has signed a non-double taxation agreement with the majority of the countries.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of agreements signed
Withholding taxes: Dividends: 10%, Interest: 10%, Royalties: 10%. All rates may be reduced in the case of a tax treaty with Morocco.
Bilateral agreement: Morocco and Tunisia are bound by a double taxation treaty: yes

Signed	Ratified	Enforced
28/08/1974	Law 76-2 of 07/01/76	26/06/1979
23/07/1990	Law 90-85 of 29/10/90	22/06/1992

Pour aller plus loin dans vos recherches nous vous proposons de connaître les taxes locales connaître les taxes locales qui s'appliquent à votre produit.

Sources of fiscal information

Tax Authorities: Inland Revenue
Other domestic resources: Tax Code

Accounting Rules

Tax year

The tax year begins on January 1 and ends on December 31 of the same year.

Accounting standards

Moroccan companies are obliged to progressively adopt IFRS international standards.

Accounting regulation bodies

National Council of Accounting

Accounting reports

The structure of accounts in Morocco is drawn on the French model.
Subject to provisions envisaged in articles 19,20,21, the people subject to this law must establish annual summary reports, at the end of the financial year, based on accounting and inventory records drawn in the daybook, the general ledger and the inventory book.

These summary reports include:
- the balance sheet,
- the incomes and expenses account,
- the management sales report,
- the funds flow statement,
- the additional information report.
They form an integral whole.

Publication requirements

The balance sheet describes separately the asset and liabilities items of the business.
The income and expense account summarises the incomes and expenses of the financial year without considering their date of cashing or payment.
The management balances report describes the formation of the net income and that of self-financing.
The funds flow statement highlights the financial growth of the company during the financial year by describing the resources provided and jobs provided from it.
The additional details report supplements and comments on information provided by the balance sheet, the income and expense account, the management balances report and the funds flow statement.

Account should be certified annually.

Professional accountancy bodies

Public Accountants Corporation
Moroccan Association of Internal Auditor Consultants
Association of Chartered Accountants

Certification and auditing

The status of the auditor has been redefined by the companies law of 1999.
Audit is obligatory for public limited companies, listed companies, banks and private limited companies with annual turnover higher than 50 million MAD. In Morocco, company audit must be done by a government auditor appointed during the annual general meeting, in the case of a public limited company. The government auditor must belong necessarily to the Public Accountants Corporation.
For some companies - listed, public, banking, credit institute companies, etc - audit must be done by two government auditors.

Accounting news

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