Tax Rates in Morocco

To start your business in Morocco, read this guide and it will help you understand the specific tax laws and costs of LLC (SLL), the most common type of company in Morocco.

The corporate tax in Morocco varies from 10% to 31%. Morocco's VAT rate is 20.00%, which is the world's 134th largest value-added tax rate. For other taxes, the employer will contribute 8.10% to the Social Security Fund and the employee contribution will be 6.74%. The overall complexity of the tax system is low. This is measured by average time to comply with a country's labor tax requirements is as it is 42hours. Contributing to this is the number of yearly labor tax payments, which is 1 in MA.

Tax rate on foreign companies

The tax rate for foreign companies is 10%. Morocco tax applies to territory. If a foreign company registration in Morocco, it is responsible for the co-revenue of Morocco and exercises 8% of the contract amount (see table). An optional tax that is required before April 1 of each fiscal year. Otherwise, the tax benefits apply equally to residents and foreign companies. The terms of a company in Morocco apply to establishing a corporation in Morocco or operating a company effectively in Morocco.

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The income from real estate settlement is usually 20% of the tax. In some cases, high rates apply. The capital gain from stock settlement is 20% of tax. Capital gains from settlement of residence used as a major accommodation for at least six years are exempt.

Main allowance deductions and tax credits

Costs incurred in connection with business activities are generally deductible unless exempted. During the five-year term, development costs will be reduced to tax purposes by excluding capitalization. Interest on direct debits and loans provided by direct shareholders can be deducted if the capital stock is paid in full.

The company's charitable contributions are only deductible when provided to the Foundation and the community that are clearly provided by law. Contribution to the community industry is deducted up to 0.2% of the company's sales.

Debt deficits can be carried forward for four years after the deficit account deficit ends. However, some of the penalty-related losses may be extended forever, and no lost charity is allowed.

Provide foreign tax relief for foreign tax credit

The 2015 Budget Act (2015) provides tax benefits for companies under five companies between January 1, 2015, and December 31, 2015, with a monthly income of Rs 10,000. Income tax exemption is possible. Real estate developers can apply for a tax exemption for the social housing construction program from January 1, 2010 to December 31, 2020.