Moroccan Companies Fill State Coffers at Record Levels

The start of the year marks a genuine turning point for Morocco’s state coffers. With 44.9 billion dirhams collected in just three months, corporate income tax (CIT) has nearly matched its pre-crisis annual level. As L’Economiste indicates, this spectacular performance follows a fiscal overhaul launched in 2023 and completed this year. Accounting for 37.3% of net ordinary revenues, CIT now stands as the primary pillar of the general budget, far outpacing other levies.

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While companies are driving revenues upward, income tax shows a decline of 9.7%, reaching 18.9 billion dirhams. This drop is misleading, however, as the previous year benefited from an exceptional intake of 3.8 billion linked to voluntary regularization. Meanwhile, value-added tax (VAT) reinforces its second-place position with 27.8 billion dirhams collected. The marked progression of domestic VAT reflects "solid domestic demand, or at least improved collection efficiency," contrasting with more modest imports.

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This fiscal improvement is accompanied by much faster processing of company refunds. Domestic VAT reimbursements surged 18.2% to reach 5 billion dirhams by end of March. The administration now pursues a "zero arrears objective, with reimbursement timelines reduced to an average of two months." Conversely, CIT refunds plummeted 39.5%, as the backlog of pending cases was already largely cleared the previous year.