Morocco Tax Reform 2026: New DGI Rules for Businesses and Taxpayers

The document published on 27 February by the General Directorate of Taxes (DGI) “goes beyond a simple educational exercise” by establishing the official interpretation framework for the 2026 Finance Law. This circular structures tax doctrine around corporate income tax, personal income tax and VAT.

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For corporate income tax, the framework has now been clarified, with a rate of 20% for profits below 100 million dirhams and 35% for large companies. Credit institutions retain a specific rate of 40%.

The personal income tax section introduces an updated progressive scale, ranging from full exemption for income below 40,000 dirhams to a rate of 37% above 180,000 dirhams, in order to ensure a more progressive tax system.

Morocco’s 2026 tax reform: corporate tax, personal income tax and digitalization

VAT reform is now structured around a standard rate of 20% and a reduced rate of 10%. This refocusing is accompanied by new targeted exemptions and strict rules on self-assessment, requiring businesses to update their management tools.

The DGI devotes a major section to digitalization, confirming the mandatory use of electronic channels for notifications. The stated objective is to ensure a “consistent application of the rules” and stricter time limits for tax audits across the country.

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Finally, the circular confirms the extension of the solidarity social contribution until 2028. This new framework requires taxpayers to make concrete adjustments to their compliance systems in order to incorporate these clarifications, which “reinforce the applicable doctrine” from the current fiscal year onward.