Main measures of the 2026 Finance Law
- Completion of the Corporate Tax (IS) Reform In line with the multi-year schedule, 2026 marks the final stage of rate unification:
• 20% for companies with net profit below 100 million MAD.
• 35% for companies with net profit equal to or above 100 million MAD.
• 40% (specific rate) for credit institutions, banks, insurance and reinsurance companies.
• Accompanying measures: Consolidation of the tax group regime (participation threshold maintained at 66.67%) and optimization of the depreciation ceiling for company vehicles. - Withholding tax on equity income (Dividends) Continuation of the programmed reduction of the withholding tax rate to reach the target of 10% in 2027:
• Applicable rate in 2026: 11.25% (compared to 12.5% in 2025).
• This measure aims to ease the tax burden on investors and stimulate the national stock market. - Income Tax (IR) Reform and Social Measures Entry into force of key provisions to support purchasing power:
• Full exemption from income tax: Net taxable income threshold maintained at 40,000 MAD.
• Marginal rate: Set at 37% for higher brackets.
• Support for retirees: Implementation of full income tax exemption for retirement pensions and basic annuities from January 1, 2026.
• Family charges: Application of deductions increased to 500 MAD per dependent. - Green taxation and energy transition
• Carbon tax: Consolidation of green taxation mechanisms to encourage decarbonization of the national industry.
• Clean energy incentives: Exemptions and preferential tariffs for equipment related to seawater desalination and green hydrogen projects. - VAT management and regulatory measures
• Rate adjustments: Finalization of convergence towards two target rates (10% and 20%) to simplify the system and reduce bottleneck situations.
• Agricultural support: Revision of exemptions on agricultural inputs depending on agricultural campaign conditions and food sovereignty. - Budget priorities and investments
• Social state: Mobilization of funds to sustain direct social aid and upgrade the healthcare system.
• Infrastructure: Massive allocations for projects related to the 2030 World Cup and railway networks (high-speed rail).
• Financial sustainability: Objective of reducing the budget deficit to ensure medium-term macroeconomic stability.