Morocco’s Draft 2027 Finance Bill: Tax Measures Businesses Should Anticipate

Adopted by the Government Council on 20 October 2026 and filed with Parliament on 23 October 2026, the draft Finance Bill (PLF) for 2027 contains a package of tax and customs measures that directly affect businesses: a new advance payment on imports, a higher corporate tax rate for certain sectors, VAT adjustments, a revised personal income tax scale and procedural changes. At this stage it is only a draft: the text may be amended during parliamentary debate, and only the provisions of the Finance Act as finally published in the Official Bulletin will apply. This article offers an overview of the main measures and practical points of attention for managers and finance departments.

1. A 5% advance on imports for resale (from 1 July 2027)

The most significant measure for trading businesses is the introduction, from 1 July 2027, of a 5% advance calculated on the customs value of goods imported for resale in their original state. According to published information on the draft:

• the advance is collected at customs clearance;
• it can be credited against corporate tax (IS) or income tax (IR), including provisional instalments, and any excess is refundable;
• it applies for 60 months from the first import, after which only companies without a recent tax compliance certificate would remain subject to it;
• excluded in particular are economic customs regimes (temporary admission, bonded warehousing) and capital goods.

By way of illustration, on a customs value of MAD 1,000,000 the advance would be MAD 50,000. Even though it is creditable, it weighs on the cash flow of low-margin importers.

2. Corporate tax: a 40% rate for hydrocarbon importers and distributors

The draft raises from 35% to 40% the IS rate applicable to hydrocarbon import or distribution companies whose net profit is at least MAD 100 million, for financial years opened from 1 January 2027. The threshold is assessed on net taxable profit, not on turnover or volumes. In addition, investment subsidies used to acquire non-depreciable assets (for example goodwill) could be spread over 10 years instead of being fully recognised in the year received, for subsidies received from 1 January 2027.

3. VAT and registration duties

• VAT withholding: it would be treated as paid on behalf of suppliers, who could credit it; excess amounts would be refundable on request.
• Real estate dealers: from 1 July 2027, an option for VAT on the margin would be available to professionals selling built property, with deduction of renovation costs but no deduction of acquisition VAT.
• Imports of livestock and meat: permanent VAT exemption on imports of live bovine, ovine, caprine and camelid animals and of fresh, chilled or frozen meat and offal; sales of sand would be exempt without right of deduction.
• Luxury vehicles (from 1 January 2027): increased registration duties, as shown in the table below.

Vehicle value (MAD)	Current rate	Proposed rate
400,000 – 600,000	5%	6%
600,001 – 800,000	10%	12%
800,001 – 1,000,000	15%	18%
Over 1,000,000	20%	24%

4. Income tax: a scale revised gradually through 2031

The draft provides for a phased reduction of IR. The exemption threshold would rise from MAD 40,000 to MAD 60,000 as early as 2027, with a marginal rate of 37% in 2027, falling to 30% by 2030-2031. The flat-rate professional expense deduction for employees would be raised to 45%, capped at MAD 35,000 per year, for income received from 1 January 2027. From 2031, the exemption for professional allowances would be limited to expenses actually justified, with permanent allowances taxed as salary supplements. For employers, these changes will affect payroll, the calculation of withholding tax on salaries and remuneration policy.

5. Tax procedures and customs

• bank deposits would be accepted as a means of payment for the deduction of expenses and VAT (articles 11-II and 106-II of the General Tax Code, CGI);
• disposals of securities would have to be declared in the month following the sale;
• the administration’s right of communication would be widened, the powers of the appeal commissions clarified and articles 230 and 230 ter of the CGI repealed;
• a temporary voluntary regularisation scheme for the informal sector would be renewed for 2027;
• customs brokers would have to comply with new specifications from 1 January 2027, with a 12-month compliance period for existing operators.

The draft also contains provisions supporting the 2030 World Cup (temporary exemptions for FIFA and designated entities) and a gradual reform of excise duties on tobacco and certain beverages.

6. Very small, small and medium-sized enterprises and public procurement

Decree No. 2-22-431 on public procurement (article 148) already reserves 30% of public contracts for very small, small and medium-sized enterprises (TPME). The draft budget states the aim of making this more effective. The average payment period of public entities was 35.6 days in June 2026, against a legal cap of 60 days. For SMEs supplying the State, compliance with payment deadlines remains a cash-flow lever to monitor closely.

7. E-invoicing: no timetable at this stage

The draft sets no implementation timetable for e-invoicing, whose legal basis is article 145-IX of the CGI (auto-entrepreneurs being excluded by article 145-XI). Businesses should nevertheless continue preparing their invoicing systems.

Practical points of attention

• Follow the final text: the amounts, rates and dates above are those of the filed draft and may change at the vote.
• Importer-resellers: simulate now the impact of the 5% advance on cash flow from July 2027 and check the validity of the tax compliance certificate.
• Hydrocarbon sector groups: assess the effect of the 40% rate on 2027 provisional instalments.
• Real estate transactions: analyse the benefit of the VAT-on-margin option for transactions after 1 July 2027.
• Employers: anticipate the impact of the new IR scale and the 45% flat deduction on 2027 payroll.
• Payment documentation: review payment methods and record-keeping in light of the changes to articles 11 and 106 of the CGI.

Conclusion

The 2027 Finance Bill combines relief on personal taxation, targeted revenue measures (imports, hydrocarbons, luxury vehicles) and procedural reforms. Businesses would be well advised to map now the provisions that concern them in order to adjust their cash flow, pricing policy and internal organisation before the text enters into force. This article presents a general overview and does not constitute legal advice. For an analysis tailored to your situation, please do not hesitate to contact Westfield law firm in Casablanca or Rabat.