Morocco Offers Tax Breaks to Boost Domestic Defense Industry

The Moroccan government has decided to give a significant boost to its defense industry. At its meeting on Thursday, November 14, the Council of Government approved the temporary exemption from corporate income tax (IS) for companies in the sector.
This measure aims to encourage investments in this strategic area, as explained by Abdelatif Loudiyi, Minister Delegate to the Head of Government in charge of National Defense Management, who presented the draft decree.
Specifically, companies that manufacture defense and security equipment and materials, weapons and ammunition, will be able to benefit from this tax relief, in accordance with Article 6 of the General Tax Code.
This decision is part of a broader desire to develop a genuine national defense industry. Morocco had already announced, at the Council of Ministers on June 1, the creation of two industrial acceleration zones dedicated to this sector. In addition, the defense budget has been increased in the context of the 2025 Finance Bill, in order to support this ambitious project.
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