Rabat – Morocco’s Finance Law for 2026, recently approved by Parliament and awaiting publication in the Official Gazette, introduces new tax rules designed to make procedures easier, improve transparency, and support key economic sectors and social groups.
The government states that the reforms aim to strike a balance between fiscal discipline and incentives for investment, business formalization, and social fairness.
Support for microfinance
A major change concerns the microfinance sector. The law offers more favorable tax treatment for microfinance institutions that grow out of microcredit associations and move into corporate or banking structures.
For their first five years, these institutions will benefit from a special tax regime instead of the standard 40% corporate tax rate applied to financial companies.
The goal is to encourage microcredit associations to evolve into stronger institutions while keeping their social mission intact, helping vulnerable groups and small entrepreneurs gain access to financing.
Incentives for international maritime transport
Morocco’s 2026 Finance Law includes new tax rules for international maritime transport, aimed at bringing the country’s system closer to global standards.
The measures focus on reducing tax barriers in cross‑border shipping, especially payments made to foreign companies. These payments include vessel leases, maintenance services, and other costs linked to ships operating in international transport.
By easing the tax burden on these transactions, the government hopes to make Moroccan operators more competitive and ensure smoother international shipping activities.
Simplified rules for Non‑Resident real estate sales
In the real estate sector, the law introduces procedural simplification for non-resident companies that sell property in Morocco without having a permanent establishment in the country.
Instead of filing an annual declaration for capital gains within months after the end of the fiscal year, these entities will be allowed to settle their tax obligations directly after each transaction. This change is designed to reduce administrative complexity while ensuring accurate and timely tax collection.
Withholding tax on rental income
A major reform concerns the generalization of withholding tax on rental income. The law extends the obligation of withholding at source to most rental payments, whether made to companies subject to corporate tax or individuals subject to professional income tax.
Public bodies, state-owned enterprises, banks, and insurance companies will be required to apply a 5 percent withholding tax on gross rental amounts.
Implementation will be phased in, starting in July 2026 for the largest companies, and gradually extended to smaller entities by 2028. The withheld amounts remain creditable against final tax liabilities, maintaining flexibility for taxpayers.
Discouraging cash deals in real estate
To further discourage cash transactions and enhance traceability, the Finance Law introduces an additional 2% registration duty on real estate and business asset transactions exceeding 300,000 dirhams when payment methods are not clearly specified or do not rely on approved banking instruments.
If only part of the price is paid through non-compliant means, the additional duty applies proportionally to that portion. This measure aims to reinforce transparency in high-value transactions.
Relief for retiring small business owners
On the social front, the law provides a 50 percent tax deduction for individuals taxed under the Unified Professional Contribution system who permanently cease activity after the age of 65 and do not benefit from a pension scheme.
The deduction applies to gains related to intangible business assets, up to a ceiling of 1 million dirhams, easing the tax burden on small business owners at the end of their professional careers.
Family tax deductions
Households also benefit from an increase in the personal income tax deduction for family dependents, raised from 500 to 600 dirhams per dependent per year, with the overall cap increased to 3,600 dirhams for up to six dependents. This adjustment aims to support household purchasing power in the context of rising living costs.
Procedural simplification and faster capital gains tax payments
Additional measures include the simplification of tax audits for individuals, with clearer procedures and reduced administrative steps, and a new requirement to pay tax on capital gains from the sale of securities within 30 days of each transaction.
This replaces the previous annual payment deadline while maintaining the possibility of later reconciliation.
Social solidarity contribution extended
Finally, the Finance Law extends the social solidarity contribution (CSS) through 2026, 2027, and 2028.
This contribution applies to both corporate profits and individual taxable results subject to the real net result regime, starting at 1.5% for annual results above 1 million dirhams with progressively higher rates for larger profit brackets, reinforcing a funding source for social protection programs under the ongoing budget framework.
