Morocco’s tax system follows a territorial approach, meaning residents are taxed only on income earned within the country. Corporate tax rates go up to 32% for high-income companies, while personal income tax is progressive, reaching up to 38%. Unlike many countries, Morocco does not impose gift, inheritance, or wealth taxes. With strong international agreements for investment protection and tax treaties, Morocco ensures compliance while maintaining an attractive environment for businesses and individuals.
Morocco’s Tax System overview
| Corporate Income Tax: | 32%, progr. |
| Personal Income Tax: | 38%, progr. |
| Inheritance Tax: | None |
| Gift Tax: | None |
| Wealth Tax: | None |
Political Legal System
Morocco has a constitutional monarchy. The legal system is based on a combination of Muslim law and French civil law.
Personal Income Taxation
Individuals that are tax resident in Morocco are subject to tax on worldwide income at progressive rates up to 38%. Tax residence is determined by the place of one’s permanent home, the center of one’s economic interest, or spending more than 183 days in any 365 day period. Morocco does not impose gift tax, inheritance tax, or wealth tax.
Corporate Income Tax
Morocco has a territorial tax system. Resident corporations are subject to tax only on Moroccan source income at rates up 32% for companies with income over MAD 100MM. Non-resident corporations are subject to tax in Morocco if they maintain a permanent establishment in Morocco.
Controlled Foreign Corporation Rules (CFC)
Morocco does not have Controlled Foreign Corporation Rules.
Double Tax Treaties (DTTs)
Morocco has DTTs in effect with a number of countries, including Canada, Luxembourg, Malta, Netherlands, Switzerland, the UAE, the UK, and the US.
Investment Treaties
Morocco has a network of agreements for the protection of foreign investments that provide for international arbitration in the event of nationalization or expropriation, including with Luxembourg, the Netherlands, Spain, Switzerland, the UAE, the United Kingdom, and the United States (FTA).
OECD Multilateral Convention
Morocco is a signatory to the Multilateral Convention on Mutual Administrative Assistance in Tax Matters. The Convention requires signatories to exchange information “on request,” and authorizes information exchange spontaneously and automatically.
Common Reporting Standard (CRS)
Morocco has executed the Multilateral Competent Authority Agreement (MCAA) for the implementation of automatic exchange of information under CRS. First exchanges are expected for 2025.
FATCA
Morocco does not have a FATCA agreement with the United States for the automatic exchange of account information.
