Finance Law 2025 – Morocco
1. Corporate Income Tax (CIT) Reform
- Unified tax brackets:
- 20% for profits < MAD 100M
- 35% for profits ≥ MAD 100M
- 40% for banks, insurance companies, etc.
- Progressive application until 2026
- Vehicle amortization cap raised to MAD 400,000
- Threshold for tax group formation reduced to 66.67%
2. Withholding Tax on Dividends
- Gradual reduction:
- 12.5% in 2025
- 11.25% in 2026
- 10% in 2027
3. Personal Income Tax (PIT) Reform
- Exemption up to MAD 40,000
- Top marginal rate reduced to 37%
- Family allowance increased to MAD 500/person
- Benefits for retirees and interns:
- Full PIT exemption from 2026
- Temporary exemption for internship allowances
4. VAT
- Temporary exemption (until end of 2025) on some agricultural and livestock products
5. Other Measures
- Taxation of partnerships and economic interest groups with ≥5 individual partners
- Registration fee reform (new category: “leases > 10 years”)
- Introduction of a carbon tax in line with green fiscal policy