Published in Official Bulletin No. 7465 bis of December 16, 2025 and effective January 1, 2026, Finance Law No. 50-25 for the 2026 budget year closes out a tax reform cycle launched in 2023. For Moroccan companies, it ends the transitional progressivity of corporate income tax, introduces new withholding taxes on rent and certain services, extends mandatory VAT self-assessment to new sectors, and tightens reporting obligations, notably for companies in financial difficulty. This overview covers the measures most directly relevant to commercial companies, their directors and their advisors.
Legal framework: a text enacted in December 2025
The 2026 Finance Law was enacted by Dahir No. 1-25-67 of 19 Joumada II 1447 (December 10, 2025) and published in Official Bulletin No. 7465 bis of December 16, 2025. As every year, it amends numerous provisions of the General Tax Code (CGI) without overhauling its overall structure. Its entry into force, set at January 1, 2026, is nonetheless accompanied by several staggered application dates (July 1, 2026, January 1, 2027, January 1, 2028) depending on the measure, which calls for a careful reading of the timeline specific to each provision before drawing operational conclusions.
Corporate income tax: the end of progressivity, final rates
The most structural measure of the 2026 Finance Law concerns corporate income tax (IS). The transitional progressive-rate regime introduced by the tax reform framework law and applied between 2023 and 2025 comes to an end: rates become final and unified starting with financial years opened in 2026.
| Company category | Transitional regime (2023-2025) | Final rate, 2026 Finance Law |
|---|---|---|
| Non-financial sector, net taxable profit < MAD 100 million | Progressive scale (10%, 20%, 31% depending on bracket) | 20% on the entire profit |
| Non-financial sector, net taxable profit ≥ MAD 100 million | 33% | 35% |
| Financial sector (banks, Bank Al-Maghrib, CDG, insurance and reinsurance) | 37% | 40% |
In practice, most Moroccan SMEs and micro-enterprises structured as SARL, single-member SARL or SAS now fall under a single 20% rate, regardless of the amount of their net taxable profit as long as it remains below MAD 100 million. Companies whose profits were previously taxed at 10% on the first brackets need to factor this increase into their 2026 cash-flow forecasts and provisional tax instalments.
In addition, non-resident companies without an establishment in Morocco that sell real estate located in Morocco must now declare the capital gain realized and pay the corresponding corporate tax within 30 days of the month of the sale, using a simplified form, for sales made from January 1, 2026 onward.
VAT: extended self-assessment and a new withholding mechanism for large taxpayers
Two distinct mechanisms deserve the attention of finance departments. First, VAT self-assessment becomes mandatory, from January 1, 2026, for industrial processing companies on their purchases of new industrial waste, metals and other recovered materials: it is the buyer, not the supplier, who declares and remits the tax.
Second, the 2026 Finance Law introduces a VAT withholding mechanism on service fees, applied progressively to credit institutions, insurance and reinsurance companies, and companies whose turnover excluding VAT exceeds certain thresholds (MAD 500 million from July 1, 2026, MAD 350 million from January 1, 2027, then MAD 200 million from January 1, 2028). The withholding rate is 75% if the service provider presents a tax compliance certificate, and 100% otherwise — an incentive mechanism that makes such a certificate practically indispensable for providers dealing with these clients.
Finally, any VAT-registered business established in Morocco must now attach to its turnover return a statement of transactions carried out with non-resident taxpayers, under penalty of the fines provided for in the CGI in case of failure or delay.
New 5% withholding tax on professional rental income
From July 1, 2026, a 5% withholding tax applies to rent paid to corporate entities subject to corporate tax as well as to individuals under the actual or simplified net income regime for their business properties. This obligation, borne by the tenant when it is a company, initially concerns tenants whose turnover excluding VAT is equal to or greater than MAD 500 million, before being progressively extended to companies with MAD 350 million and then MAD 200 million in turnover in 2027 and 2028. The withholding is creditable against the corporate or income tax owed by the landlord and must be paid to the Treasury within the month following payment of the rent, together with a detailed statement of amounts paid.
Companies renting commercial, industrial or office premises therefore need to review their rent-payment processes to incorporate this withholding into their schedules, even though the gradual entry into force gives intermediate-sized structures time to adapt.
Digitalization of tax obligations
The 2026 Finance Law continues the digitalization of the relationship between taxpayers and the tax administration. Every company must now provide the General Tax Directorate (DGI) with an email address of its choice, without going through a qualified trust service provider as previously required; notifications sent to that address via the SIMPL platform now carry the same legal effect as a conventional notification. In addition, keeping accounts in electronic format becomes a general obligation, with systems required to produce, for each financial year, an accounting entries file (FEC) compliant with the requirements of the National Accounting Council. These developments are part of the broader rollout of electronic invoicing, whose deployment timeline continues by turnover bracket.
Companies in financial difficulty: a new prior-notification obligation
A provision not to be overlooked by companies facing economic difficulties: since the 2026 Finance Law, any company subject to safeguard, receivership or judicial liquidation proceedings must inform the tax administration by means of an electronic declaration. This declaration must be made before filing the request with the court registry when the proceedings are initiated by the company itself, or within 30 days of publication of the opening judgment in the Official Bulletin in other cases. Failing this, the company will not be able to invoke against the tax administration the limitation on assessment rights for the period prior to the opening of the proceedings — a potentially significant issue in the event of a subsequent tax audit. Any resulting adjustments then follow the accelerated procedure provided for in the CGI.
Registration duties: targeted adjustments
The 2026 Finance Law lowers from 6% to 5% the registration duty rate applicable to transfers of shares or units in transparent real estate companies and unlisted predominantly real-estate companies. In parallel, it introduces, from July 1, 2026, an additional 2% duty on certain real estate transfers and business (goodwill) sales exceeding MAD 300,000, where the deed does not specify traceable payment methods (non-endorsable crossed cheque, bank transfer, electronic means) or where payment was not made through one of these means — a measure clearly aimed at limiting cash payments in real estate and business transactions.
Practical points of attention
- Update 2026 tax forecasts to reflect the end of progressive IS rates, particularly for companies whose profit was previously taxed at 10% on its first brackets.
- Check whether the company’s activity (industrial processing, purchases of recovered materials) triggers a VAT self-assessment obligation from January 1, 2026.
- Anticipate, depending on the company’s turnover, the progressive entry into force of the 5% withholding tax on professional rent paid or received from July 1, 2026.
- For service providers subject to the VAT withholding mechanism, obtain and keep up to date a tax compliance certificate in order to benefit from the reduced 75% rate rather than 100%.
- Promptly declare an email address to the DGI and ensure the company’s accounting can be kept and produced in a compliant electronic format.
- In the event of economic difficulties, do not overlook the prior electronic declaration to the DGI before any request for safeguard, receivership or judicial liquidation, on pain of losing the benefit of the limitation on assessment rights.
- For real estate transactions and business sales, ensure that deeds specify traceable payment methods in order to avoid the additional 2% registration duty applicable from July 2026.
Conclusion
The 2026 Finance Law marks less a break than a consolidation: it stabilizes corporate tax rates that have become final after three years of transition, while multiplying withholding mechanisms and digitalized reporting obligations that strengthen the tax administration’s oversight of companies’ financial flows. Moroccan companies, particularly those whose activity, size or sector bring them close to the thresholds mentioned in this overview, would be well advised to have their rent-payment, invoicing and electronic filing processes audited before the next tax deadlines.
This article provides a general overview and does not constitute legal advice. For any question regarding the application of the 2026 Finance Law to your company’s specific situation, the Westfield law firm is available to assist you.