Accounting Services in Morocco

Every month: VAT (monthly regime), payroll income tax and the withholding taxes deducted (non-residents, dividends, fees, rents, VAT). Every quarter: VAT (quarterly regime) and corporate income tax instalments. Every year: the salary return and the return of rents paid before 1 March, the dividend return by 31 March at the latest, then, within 3 months of the year end, the corporate tax return, together with the returns of fees and of payments to non-residents, and the social solidarity contribution. All are filed online on SIMPL; details are given in the tax calendar above.

The rate is 20%, rising to 35% for net profit of MAD 100 million or more and to 40% for credit institutions and insurers. Until 2028, a social solidarity contribution of 1.5% to 5% also applies when net profit reaches MAD 1 million. The minimum tax (0.25% of turnover, at least MAD 3,000) remains due when the company makes a loss, except during its first 36 months of activity.

Not for its statutory accounts: every company registered in Morocco prepares its financial statements under the Moroccan General Chart of Accounts (PCGM), which is the basis for its tax returns. Group reporting, under IFRS or the parent company’s framework, is prepared in parallel from the same books, with a reconciliation between the two frameworks.

Royalties, management fees, professional fees and technical assistance paid to a non-resident company are generally subject to a 10% withholding tax on the gross amount, unless an exemption or a different rate applies under the relevant tax treaty. The tax is paid within the month following payment and summarised in an annual return filed with the tax return package.

When the non-resident company has not appointed a representative in Morocco, the Moroccan client reports the VAT on its own return (reverse charge) and deducts it at the same time if it is subject to VAT.

Companies that carry out transactions with related companies abroad must hold documentation (master file and local file) when their turnover or gross assets reach MAD 50 million. It is provided to the tax administration at the start of a tax audit, in Arabic, French or English. Groups with consolidated turnover of MAD 8.12 billion or more must also file a country-by-country report within 12 months of the year end.

Dividends are generally subject to a 10% withholding tax (11.25% for distributions made in 2026), subject to any specific provision of the tax treaty between the two countries. The tax is paid within the month following the distribution, and dividends are reported annually, by 31 March of the following year at the latest. Profits distributed by a branch to its parent company are taxed in the same way.

A subsidiary is a company under Moroccan law with its own legal personality. A branch is an establishment of the foreign company with no separate legal personality: the parent company is liable for its commitments. Both keep accounts in Morocco under the Moroccan General Chart of Accounts (PCGM) and pay corporate income tax on the profits earned in Morocco. The subsidiary’s dividends and the branch’s distributed profits bear the same withholding tax.

The change can take place at any time. The firm obtains the files, the trial balance and the returns filed from the previous accountant, checks the opening balances, then takes over the bookkeeping and the monitoring of tax deadlines without interruption.

Appointment is mandatory for SAs and SCAs; for SARLs, SNCs and SCSs, above MAD 50 million of turnover at the close of the financial year; for SASs, above a threshold set by regulation. See our statutory audit page.