Morocco

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Tax authorities

Ministry of Economy and Finance
Bd. Med V. Quartier Administratif
Rabat – Chellah, Morocco
Tel: +212 5 37 67 75 01 to 08 or +212 5 37 67 72 00 to 11
Fax: +212 5 37 67 75 27 / 28
Website: www.finances.gov.ma

Tax rates at a glance

(As of September 8 2011)

Corporate Income Tax	30%
Capital Gains Tax	30%
Branch Tax	30%
Withholding Tax
Dividends	10%
Interest	10%/20%/30%
Royalties, Scientific Know-how Payments, Technical Assistance Fees and Remuneration for Most Services	10%
Wages and Indemnities Paid to Nonpermanent Employees	30% (f)
Rent on Equipment Used in Morocco	10%
Branch Remittance Tax	10%
Net Operating Losses (Years)
Carryback	0
Carryforward	4

The corporate income tax rate is 37% for banks, financial institutions and insurance companies. A reduced rate of 15% applies to small companies with turnover under MAD3 million ($372,000), excluding VAT. The Casablanca Finance City regime provides a 10% rate for regional or international head offices.
The dividend withholding tax is a final tax for nonresidents. Withholding tax does not apply to dividends paid to Moroccan companies subject to Moroccan corporate tax if a property attestation (a certificate containing the company's tax number and attesting that the company is the owner of the shares) is delivered by the beneficiary company.
The 10% withholding tax rate on interest applies to interest paid to nonresidents on loans or other fixed-interest claims. The 10% tax is a final tax. The 20% rate applies to interest paid to resident companies and interest paid to resident self-employed individuals in connection with a business conducted by the recipient. The 20% tax may be credited by recipients against their total income tax. The 30% rate applies to interest payments made to resident individuals if the payments are unrelated to a business conducted by the recipient. The 30% tax is a final withholding tax.
The withholding tax on rent on equipment used in Morocco is a final tax applicable only to nonresidents. Effective from 1 January 2011, rental and maintenance of aircraft used for international transport are exempt from this withholding tax.
The withholding tax on employees applies only to payments to persons who are not salaried employees and do not hold a special function in the company paying the indemnities. The rate is 17% for teachers.

Source: Ernst & Young