| Morocco Income Tax Rates 2009 income tax rates for individuals in Morocco is progressive between 0-42%.
Tax year in Morocco is the calendar year.
Morocco Corporate Tax RateThe standard corporate income tax rate in Morocco is 30%.
The corporate income tax rate for credit institutions, leasing and insurance companies is 37%. Non resident companies can, under certain conditions, opt for an alternative tax rate of 8% applicable to the value of the deals. Companies are always subjected to a legal minimum tax of 1,500 MDA or 0.5% of the annual turnover.
Participation exemption: As of 1 January 2008, the participation exemption in Morocco is also applicable to dividend derived from foreign subsidiaries.
The original participation exemption regime granted 100% allowance to a Moroccan recipient company of Moroccan source dividends. This new regime will facilitate the repatriation of foreign funds located abroad for reinvestment in Morocco and the use of financial and holding structures.
Export companies, companies selling finished goods to other companies established in 'export platforms' and hotels in Morocco are not subject to corporate income tax during the first 5 years after taking up residence or after set up. In addition, from the sixth year and for an unlimited period of time, the aforementioned companies and hotels will be subject to a corporate tax rate of 17.5%.
Furthermore, export companies operating in specified provinces or established within the Tangier administrative department are subject to 8.75% as of 1 January 2008 until 31 December 2010. As of 1 January 2011 the corporate income tax rate of 17.5% will apply.
Offshore tax regime: Holding companies established in Morocco that only manage participations or portfolio securities are subject to an annual flat corporate tax of only $ 500. Other conditions that have to be met are that the holding activities should be undertaken on behalf of non-residents in foreign currencies and the capital of the holding companies should be held in a foreign currency.
Morocco Value Added Tax (VAT) RateThe standard VAT rate in Morocco is 20%. However, leasing companies will be entitled to a refund of VAT where the input tax exceeds the output tax. Next to the standard tax rate, there are three reduced rates of 14%, 10% and 7% applicable, depending on the products and services offered.
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