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Tax exemptions:
All natural or legal persons engaged in professional,
industrial and commercial businesses are exempted from the payment of business tax for the first five years of their business operations, and for a period of five years from January 1, 2001, they are exempted from the payment of business tax on the land, buildings, extensions of buildings, machinery, equipment and appliances and materials derived from their business operations.
4. Income Tax (Imp?t Général sur le Revenu): taxed on natural persons, ****owned members of property, unlimited liability companies formed by natural persons who do not pay corporate tax, simple two-company and anonymous partnership associations, as well as de facto corporations formed exclusively by natural persons; the scope of the tax is on freelance income, wages and similar income, Income and profits from movable property, income from agricultural operations (exempted until December 31, 2010), gains and interests from real estate.
Income tax is levied in the following tax brackets:
Gain brackets
Levy rate 20000DHS 0%
20001-24000DHS 13%
24001-36000DHS 21%
36001-60000DHS 35%
Above 60001 44% Note: DHS=Dirhams 1$=11.5 DHS)
Special rules apply to the percentage of tax on certain gains:
- 10% on gross and movable gains, and on the net profit from the transfer of shares of a foreign enterprise that has no office in Morocco;
- 10% on net profit from the transfer of shares of an investment in a collective investment institution;
- 10% on net profit from the transfer of shares of an investment in a collective investment institution;
- 10% on net profit from the transfer of shares of an investment in a collective investment institution. The rate of tax on net gains from the transfer of investment shares in institutions is 15 percent;
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17 percent on remuneration and allowances paid by public or private educational or vocational training institutions to instructors employed on a temporary basis.
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The levy is 30% on remuneration and allowances paid by enterprises to temporarily employed persons and on allowances and gratuities received by doctors not licensed to practise as surgeons in medical rash clinics or similar institutions.
Minimum levy: Income tax levied on the earnings of professional occupations and taxed on net earnings is subject to a minimum levy. The minimum levy is calculated on the basis of turnover, incidental gains, financial gains, subsidies, bonuses and grants in the following proportions: for freelancers and dependents, the minimum levy is 6%; for other professions, it is 0.50%, and for sellers of oil, gas, butter, cooking oil, sugar and flour, the minimum levy is 0.25%.
Income tax exemptions: income from abroad of diplomatic personnel, gains from intellectual property rights on literary, artistic and scientific works of persons residing in Morocco and gains from transactions of natural persons engaged in transactions of services financed by the European Union are exempt from income tax. Enterprises in the mining sector and mineral enterprises that sell their products to export processing enterprises are subject to a 50% reduction in the percentage of income tax levied for five years from the start of export of the processed products; craft enterprises are subject to a 50% reduction in the percentage of income tax levied during the first five years of operation; and the percentage of income tax levied is reduced by half for the first five years of operation in the case of enterprises established in the following governorates: Al Hoceima, Berkane, Boujdour, Chefchaux, Boujdour, Boujdour, Boujdour, Boujdour, Chefchaux, Boujdour and Chefchaux. Boujdour, Chefchaouen,
Es-Semara, Guelmin, Jerada, La?youne, Larache, Nador, Tanger-Assilah,
Tan-Tan, Tétouan. Enterprises exporting products and services are entitled to a 5-year exemption from income tax. years and halved after 5 years;
Hotel enterprises set up after July 1, 2000, enjoy income tax exemption for 5 years and halved thereafter on foreign exchange earnings from business transferred out of the country.
Income tax levy on foreign exchange turnover of hotels that have been in business prior to July 1, 2000, is reduced by half of the percentage of income tax levied.
5, corporate tax (Imp?t sur les Sociétés): corporate tax is levied on capital companies, partnership
companies, cooperatives, profit-making public **** institutions and legal persons, etc.; unlimited liability companies formed by natural persons, two companies
and anonymous partnerships can choose whether to pay corporate tax (or income tax). The tax rate is 35% of corporate profits, and 39.6% for financial institutions
structures.
Special provisions on tax rates: 10% on pre-tax gains on shares, partnership gains, and
profits earned by foreign companies from their establishments in the country and transferred to a foreign company, regardless of whether they are incorporated in the country or not; and 10% on profits realized by a foreign company that has opted for the "contractual tax" option. industrial, technical installation and real estate works realized by foreign companies opting for "contractual taxation" are taxed at a rate of 8% before tax.
Minimum Taxation: The minimum tax is calculated on the basis of the pre-tax amount of turnover, incidental gains, financial gains, subsidies, bonuses and grants, which shall not be less than 1,500 DHS, regardless of whether the company pays corporate tax at 35% or 39.6%, and the percentage of the tax shall be 0.50% for the sale of petroleum, natural gas, butter, edible oils, sugar, flour, water, and electricity. The minimum tax percentage is
0,25%.
The exemptions from corporate tax provide for:
Associations and organizations operating for non-profit purposes,
Livestock breeding enterprises,
Agricultural development companies
(exempted from tax until 31 December 2010), legal persons engaged in transactions with services financed by EU grants (proceeds of transactions) are exempted from corporate tax;
Enterprises in the mining sector selling their products to export processing enterprises are exempted from corporate tax;
Enterprises in the mining sector selling their products to export processing enterprises are exempted from corporate tax. enterprises in the mining sector and mineral enterprises that sell their products to export processing enterprises shall be subject to a 50% reduction in the percentage of corporate tax levied within 5 years from the start of export of the processed products; crafts enterprises shall be subject to a 50% reduction in the percentage of corporate tax levied during the first 5 years of operation; and the percentage of corporate tax levied shall be reduced by half during the first 5 years of operation for the enterprises established in the following governorates: Al Hoceima, Berkane, Boujdour, hefchaouen, Es-Semara, Guelmin, Jerada, La?youne, Larache, Nador, Tanger-Assilah, Tan-Tan, Tétouan; companies that go public or increase their shares are entitled to a reduction in tax for 3 years from the time of their registration with the securities company
The regulations are as follows: 25% tax reduction for companies entering the market by issuing shares to the public and entering the market by transferring shares; 50% tax reduction for listed companies that increase their shares by at least 20%