The Finance Act for FY2020 published in Moroccan Official Gazette No. 6838 bis readjusted the progressive scale of corporate income tax (CIT) rates as follows:
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New Progressive CIT Scale applicable to fiscal years beginning as from January 2020:
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Legal references :
Articles 6 (I-B-3°; I-B-5°; I-D-1°; I-D-3° and I-D-4°); Ar 6 (II-B-4°; II-C-1°-b; II-C-1°-c and II-C-2°) and Ar 19-I-A of the Moroccan Tax Code.
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Written by Ali SALIMÂ Manager TAX
- Raising the corporate tax rate from 17.5% to 20% for the intermediate net profit bracket from MAD 300,001 to MAD 1,000,000.
Raising the rate of the scale capped at 20% (instead of 17.50%), applied to the net taxable profit greater than MAD 1,000,000 for the following companies:
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- Exporting companies (for more details, please refer to our article "New Tax Regime for Exporting Companies");
- Hotel companies and tourist entertainment establishments ;
- Mining companies;
- Handicraft businesses;
- Private educational or professional training institutions ;
- Sports companies;
- Real estate developers;
- Agricultural companies ;
- Companies carrying out services related to outsourcing/offshoring activities whether located inside or outside dedicated platforms for these activities.
| Net Taxable Profit (in MAD) | Rates | Amount to be deducted |
| <300.00 | 10% | 0 |
| from 300.001 to 1.000.000 | 17,5% | 22.500 |
| > 1.000.000 | 31% | 157.500 |
| Net Taxable Profit (in MAD) | Rates | Amount to be deducted |
| <300.00 | 10% | 0 |
| from 300.001 to 1.000.000 | 20% | 30.000 |
| > 1.000.000 | 31% | 140.000 |
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