Reforms corporate taxation and offers investment incentives
22 Dec 2022
Published on 23 December 2022, Finance Law No. 50-22 of 2023 introduces key tax measures including a phased reform of corporate income tax rates over a period of four years unifying tax rates applicable as of 2026. The unified target rates are (i) 20 per cent applicable to all companies with net taxable profit of less than MAD100 million, (ii) 35 per cent applicable to companies with net taxable profit of MAD100 million or more, excluding companies with Casablanca Finance City status and those located in Industrial Acceleration Zones and (iii) 40 per cent applicable to credit institutions and similar organizations, Bank Al Maghrib, Caisse de Dépôt et de Gestion and insurance and reinsurance companies.
The law also introduced an investment incentive for 1 January 2023 to 31 December 2026, for companies incorporated as of 1 January 2023, investing at least MAD1.5 million over a period of five years under an agreement to be signed with the Moroccan Government. These companies will be subject to a tax rate capped at 20 per cent for fiscal years beginning on or after 1 January 2023.
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Type:
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Treatment and operation (Corporate taxation)
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Promotion and facilitation (Investment incentives)
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Industry:
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