2027 marks the completion of several tax reforms launched under the framework law on tax reform: the convergence of corporate tax rates, the simplification of VAT and the gradual reduction of withholding tax on dividends are all reaching their end point.
For business owners, now is the time to take stock of the applicable rates, in order to anticipate the closing of the 2026 financial year and prepare 2027 decisions: dividend distributions, executive pay and budget forecasts.
Please note: the rates below are those provided for by the finance laws currently in force. The draft Finance Law 2027 must be submitted to Parliament before October 20; we will follow any changes.
Corporate income tax (IS): the reform is complete
Since the 2023 Finance Law, corporate tax has moved from a progressive scale to a system of proportional rates. The transitional period is over: in 2027, a single rate applies to the entire profit, depending on its amount.
| Net taxable profit | Corporate tax rate |
|---|---|
| Below MAD 100 million | 20% |
| MAD 100 million and above | 35% |
| Credit institutions, insurance companies and similar bodies | 40% |
In practice, the vast majority of small and medium-sized businesses are taxed at 20%, whatever their level of profit below MAD 100 million.
The minimum contribution: due even when making a loss
The minimum contribution (cotisation minimale) guarantees a minimum tax, even when the company is loss-making or generates a low profit.
| Item | Rule |
|---|---|
| Rate | 0.25% of turnover |
| Minimum | MAD 3,000 for companies |
| Exemption | First 36 months after the start of activity |
The company pays whichever is higher: the calculated corporate tax or the minimum contribution.
The social solidarity contribution (CSS): extended until 2028
The 2026 Finance Law extended the social solidarity contribution on profits for the 2026, 2027 and 2028 financial years. It is added to corporate tax for companies whose profit reaches MAD 1 million.
| Net profit | CSS rate |
|---|---|
| From MAD 1 million to under MAD 5 million | 1.5% |
| From MAD 5 million to under MAD 10 million | 2.5% |
| From MAD 10 million to under MAD 40 million | 3.5% |
| MAD 40 million and above | 5% |
Watch out: the CSS is not deductible from taxable income.
VAT: only two rates
Launched by the 2024 Finance Law, the VAT reform was completed on January 1, 2026. The 7% and 14% rates have been abolished.
| Rate | Application |
|---|---|
| 20% | Standard rate |
| 10% | Reduced rate |
Businesses whose products were subject to the former 7% or 14% rates should check that their invoicing and software are up to date.
Dividends: the 10% target rate is reached
Withholding tax on dividends has been falling gradually since 2023. The 2025 Finance Law pushed the timetable back by one year, which brings the 10% target rate to 2027.
| Year of distribution | Withholding tax rate |
|---|---|
| 2022 | 15% |
| 2023 | 13.75% |
| 2024 | 12.5% |
| 2025 | 12.5% |
| 2026 | 11.25% |
| 2027 onwards | 10% |
Since the 2025 Finance Law, it is the date of distribution that counts, not the year in which the profit was made. For resident individuals, this withholding tax is final (libératoire).
Income tax on salaries: the scale from the 2025 Finance Law
The income tax scale applicable to salaries, including the manager's remuneration, is the one reformed by the 2025 Finance Law.
| Annual net taxable income | Rate |
|---|---|
| Up to MAD 40,000 | 0% |
| MAD 40,001 to 60,000 | 10% |
| MAD 60,001 to 80,000 | 20% |
| MAD 80,001 to 100,000 | 30% |
| MAD 100,001 to 180,000 | 34% |
| Above MAD 180,000 | 37% |
This scale may change: the new government's programme mentions an overhaul of income tax. Nothing has been decided at this stage.
Worked example
An SARL (limited liability company) makes a net taxable profit of MAD 2,000,000 in 2026 and plans to distribute MAD 1,000,000 in dividends to its shareholder.
| Calculation | Amount |
|---|---|
| Corporate tax: 2,000,000 × 20% | MAD 400,000 |
| CSS: 2,000,000 × 1.5% | MAD 30,000 |
| Withholding tax on dividends distributed in 2026: 1,000,000 × 11.25% | MAD 112,500 |
| Withholding tax on dividends distributed in 2027: 1,000,000 × 10% | MAD 100,000 |
Distributing in 2027 rather than in 2026 saves MAD 12,500, i.e. 1.25 points.
This assumes the shareholder's cash position can wait and that the general meeting approving the accounts is scheduled accordingly.
Frequently asked questions
My company is making a loss: do I still have to pay tax?
Yes, the minimum contribution is still due (0.25% of turnover, minimum MAD 3,000), except during the first 36 months of activity.
Are dividends from the 2025 financial year distributed in 2027 taxed at 10%?
Yes. Since the 2025 Finance Law, the applicable rate depends on the year of distribution, not the year in which the profit was made.
Is my company subject to the social solidarity contribution?
Only if its net profit reaches MAD 1 million. Below that, no CSS is due.
Can these rates still change for 2027?
Yes. The draft Finance Law 2027 will be examined by Parliament by the end of December. The rates presented here are those provided for by the texts in force to date.
Conclusion
2027 brings a clearer tax system for Moroccan businesses: 20% corporate tax for the vast majority of companies, VAT reduced to two rates, and dividend withholding tax at its lowest level since the reform.
This stability is an opportunity to plan ahead: timing of dividend distributions, the salary / dividend trade-off, and preparation of the 2026 year-end close. These are decisions to make with your chartered accountant, while keeping an eye on the draft Finance Law 2027.