Morocco to End 20% Income Tax Cap for Key Industries in 2025

Starting in 2025, companies operating in industrial acceleration zones, exporting mining companies, hotel companies and tourist entertainment establishments, and private educational and vocational training institutions will no longer benefit from a favorable IR rate, capped at 20% regardless of their tax result. This is provided for in the 2023 Finance Act in accordance with Article 3 of Law No. 69-19 on tax reform. The capping of IR at 20% will thus give way to the taxation of a marginal rate that can go up to 38%, reports L’Économiste.

These companies wishing to continue to be taxed at 20% will have to take advantage of this two-year transition period to transform themselves into legal entities subject to corporate tax. They could thus escape taxation that can go up to 38% of IR.