Morocco's 2026 Finance Act: the main tax measures for companies and individuals

Finance Act No. 50-25 for 2026 was enacted in December 2025. It does not overhaul rates, already set by previous reforms, but it broadens withholding taxes, strengthens traceability and clarifies many special regimes. Here are the most useful measures for companies and individuals.

Corporate income tax

• 5% withholding on rent paid to companies by the State, public bodies, banks, insurers and, gradually, large companies (from 1 July 2026 for turnover of at least MAD 500 million, then 2027 and 2028 for lower thresholds). Offset against the landlord’s corporate tax.
• 5% withholding on payments for services made to companies, extended to the same categories of payers on the same timetable. See our article on withholding on fees and commissions.
• Real estate capital gains of non-resident companies: return and payment within 30 days following the month of sale.
• Private equity funds: tax transparency, with income taxed at the level of unit holders.
• Sports companies: limited deductibility of donations and a temporary corporate tax exemption.

Corporate tax rates are unchanged: see corporate income tax in 2026.

Income tax

• Employees of Casablanca Finance City companies: flat 20% rate on gross salary, for up to ten years, with an option for the progressive scale.
• 5% withholding on certain business rents paid to individuals, from 1 July 2026. See taxation of rental income.
• Disposals of securities outside a financial intermediary: tax paid within 30 days of each transaction, plus an annual summary return.
• Foreign-source investment income not subject to withholding: annual return and payment.
• Sale of a business by small traders aged 65 or over who stop trading: allowance on the capital gain, within a limit.
• Salaried professional athletes: decreasing allowance on taxable income from 2026 to 2029.

The scale is unchanged: see the 2026 income tax scale.

VAT

• VAT withholding extended to services paid for by banks, insurers and large companies, from 1 July 2026. See our dedicated article.
• Reverse charge of VAT by manufacturers on purchases of waste, metals and recovered materials.
• Statement of non-residents to be attached to returns.
• Capital goods of companies with an investment agreement with the State: longer exemption period.
• Agricultural inputs and sports companies: new targeted exemptions.

Social solidarity contribution

Extended for 2026, 2027 and 2028, with no change to thresholds or rates. See our article on the CSS.

Registration duties

• Transfers of shares in unlisted real estate companies: rate reduced from 6% to 5%.
• Additional 2% duty on sales of buildings, real rights and businesses over MAD 300,000 when payment does not follow the required methods (crossed cheque, bank transfer…), from 1 July 2026.
• Credit transactions exempt, and a fixed duty for guarantees and releases.
• Group restructurings: relief for certain asset transfers.

Procedures and obligations

• Mandatory electronic accounting, with an accounting entries file for each financial year.
• Mandatory email address to receive notices from the tax authority.
• Unified audit of individuals: accounting audit and review of the overall tax position carried out in a single procedure.
• Companies in difficulty: electronic notice to the tax authority when proceedings are opened.

What to do in 2026

1. Identify whether your company becomes a withholding agent, and from when.
2. Anticipate the cash effect of withholdings suffered if you invoice large accounts.
3. Upgrade your accounting to produce the accounting entries file.
4. Check the impact of the CSS on your tax charge.

Ascensu helps its clients implement these measures as part of their tax returns.

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.