Morocco Revises Corporate and Personal Tax Rates in 2024 Budget

In a circular note, the Directorate General of Taxes (DGI) recalled that companies with a net profit of less than 100 million dirhams and subject to a rate of 35% could benefit from a rate of 20% if this profit has not changed for three consecutive fiscal years (Article 19-I-B of the General Tax Code).

The 2024 Finance Act makes an adjustment to this rule. Henceforth, a company realizing a net profit equal to or greater than 100 million dirhams following non-recurring income from the disposal of fixed assets, pays its CIT at the rate of 35% only for that fiscal year. For the following fiscal years, the rate of 20% will be applied to it if and only if the net profit remains less than 100 million dirhams.

The DGI specifies in its note that the Personal Income Tax (PIT) has also undergone significant adjustments aimed at simplifying tax obligations and strengthening the relationship of trust between taxpayers and the tax administration. Thus, social security contributions to the compulsory health insurance and pension schemes are now deductible from the actual or simplified net income, which contributes to better social coverage.