Morocco’s Hidden Tax Burden: Local Levies Squeeze Businesses Beyond Corporate Taxes

Among the most important, the professional tax (formerly known as the patent) is an unavoidable burden for any company operating in Morocco. It is due even in the absence of profits and applies to both individuals and legal entities. Calculated on the basis of the rental value of the business premises, this tax is levied annually, with a three-year exemption for new companies.

Another local tax is the housing tax. It concerns premises used for housing, including those held by companies. If a company owns a dwelling used, for example, to house an employee or executive, it is liable for this tax. This is determined based on the rental value of the property, assessed by the tax authorities, and it applies beyond a value threshold defined by law.

Finally, we must mention the municipal services tax, a local tax intended to finance the infrastructure and public services of the municipalities (roads, lighting, cleanliness, etc.). It is also calculated on the basis of the rental value of the premises and applies to all buildings, whether for professional or residential use.

The management of these taxes is entrusted to the local tax authorities, but their proceeds are allocated to the budgets of the local authorities. This is why their amount and impact can vary from one city to another. In some cases, exemptions or reductions are provided, particularly for investments made in certain areas or in priority sectors.

Thus, any company operating in Morocco must integrate these charges into its financial forecasts. Even if they are sometimes considered secondary, local taxes represent a significant part of the operating cost, especially in large urban areas.