The 2023 Finance Act launched a four-year reform of corporate income tax (IS). The aim: replace the former progressive scale with a few proportional rates, and gradually bring special regimes into line with the general rules.
For financial years beginning in 2026, this convergence is complete. Here is what it means in practice.
Three rates, applied to the whole profit
| Net taxable profit | Corporate tax rate |
|---|---|
| Below MAD 100 million | 20% |
| MAD 100 million and above | 35% |
| Credit institutions, Bank Al-Maghrib, CDG, insurance and reinsurance companies | 40% |
An important point: these rates are proportional. Unlike the former scale, they do not apply by bracket. A company whose profit reaches MAD 100 million is taxed at 35% on the whole of that profit.
The 20% rate also covers regimes that previously had specific rates, such as companies located in industrial acceleration zones or holding Casablanca Finance City status.
Minimum tax: a tax floor
Even when a company makes a loss or a small profit, it owes a minimum tax: the cotisation minimale.
- It is calculated on turnover and certain income, at 0.25%.
- A reduced rate of 0.15% applies to certain low-margin distribution activities (notably petroleum products, gas, sugar, flour, water, electricity and medicines).
- It cannot be less than MAD 3,000.
- Newly created companies are exempt for their first 36 months of activity.
The company pays the higher of the two amounts: corporate tax on profit, or minimum tax.
Instalments and the annual return: the timeline
Corporate tax is largely paid before the year ends, through instalments.
| Deadline (year ending 31 December) | Payment |
|---|---|
| 31 March | 1st instalment: 25% of the previous year’s tax |
| 30 June | 2nd instalment: 25% |
| 30 September | 3rd instalment: 25% |
| 31 December | 4th instalment: 25% |
| 31 March of the following year | Tax return and payment of the balance |
The annual return, together with the financial statements, is filed online within three months of the year-end. If instalments paid exceed the tax actually due, the excess is offset against future instalments.
A company whose profit falls sharply may, under certain conditions, limit its instalments rather than prepay tax it will not owe. This is a cash-flow lever worth reviewing during the year.
What the 2026 Finance Act brings
Finance Act No. 50-25 does not change the rates, but introduces several measures worth knowing:
- 5% withholding tax on rents paid to companies subject to corporate tax by certain tenants: the State and public bodies, credit institutions and insurers, and large companies on a phased timetable (from 1 July 2026 for turnover of at least MAD 500 million, then 2027 and 2028 for lower thresholds). The withholding is creditable against the landlord’s corporate tax.
- Real estate gains of non-resident companies: return and payment within 30 days following the month of sale.
- Extension of the social solidarity contribution on profits for 2026, 2027 and 2028, payable on top of corporate tax by companies with profits of at least MAD 1 million. We cover it in a dedicated article.
- Mandatory electronic bookkeeping, with an accounting entries file for each financial year.
In short
- 20% for profits below MAD 100 million, 35% above, 40% for the financial sector.
- A minimum tax of 0.25% of turnover, with a floor of MAD 3,000.
- Four instalments of 25% and a return within three months of the year-end.
- A social solidarity contribution on top of corporate tax until 2028 for profits of at least MAD 1 million.
Ascensu prepares your tax returns and tracks your instalment calendar, so corporate tax never becomes a cash-flow surprise.
Official sources
This article is provided for general information, as at its publication date. It is not personalised advice: the rules change and every situation must be reviewed on its own facts.