Morocco's 2026 Finance Law continues the tax reform launched in recent years. It introduces important adjustments on corporate income tax, personal income tax, withholding tax, VAT, and registration duties.

These updates are mainly designed to strengthen tax transparency, improve traceability of economic transactions, and modernize reporting obligations for businesses.

Corporate tax: final step of the rate reform

In 2026, the standard CIT rates are:

  • 20% for companies with net profit below MAD 100 million
  • 35% for companies with net profit equal to or above MAD 100 million
  • 40% for specific sectors (credit institutions, Bank Al-Maghrib, CDG, insurance and reinsurance)

This completes the simplification path of corporate tax and aims to improve tax competitiveness.

Dividend taxation: continued rate decrease

Withholding tax on distributed dividends keeps decreasing:

  • 12.50% for distributions made from 2025
  • 11.25% for distributions made from 2026
  • 10% starting in 2027

The applicable rate depends on the distribution date, not on the fiscal year in which profits were generated.

Personal income tax: bracket scale unchanged in 2026

The progressive PIT scale remains unchanged:

  • Up to MAD 40,000: 0%
  • MAD 40,001 - 60,000: 10%
  • MAD 60,001 - 80,000: 20%
  • MAD 80,001 - 100,000: 30%
  • MAD 100,001 - 180,000: 34%
  • Above MAD 180,000: 37%

Increase in family-charge deduction

  • Deduction increased to MAD 600 per dependent
  • Annual cap set at MAD 3,600

Withholding tax on professional rents

From July 1, 2026, a 5% withholding tax applies to specific professional rents paid to CIT-subject companies and individuals taxed under real or simplified net-income regimes.

The withheld amount is creditable against final tax due by the beneficiary.

Extended withholding on selected services

The scope is expanded to certain fees, commissions and services, with phased implementation:

  • From 2026: turnover >= MAD 500 million
  • From 2027: turnover > MAD 350 million
  • From 2028: turnover > MAD 200 million

Stronger tax and accounting obligations

  • Tax payment on certain securities transfers within 30 days
  • Stronger legal framework for electronic bookkeeping
  • Possibility of combined tax audits (company accounts + manager's personal tax situation)

Registration duty changes

  • New 0.1% registration duty on public procurement contracts
  • Additional 2% duty for certain non-traceable or non-compliant payment methods

These measures are intended to encourage traceable payment methods and improve transaction transparency.

Conclusion

The 2026 Finance Law keeps reshaping Morocco's tax system around three priorities: simplification, transparency, and modernization of tax and accounting obligations.

For businesses, these developments require close monitoring to properly anticipate operational and financial impacts.