Draft 2026 Finance Bill: the first tax measures

The draft Finance Bill (Projet de Loi de Finances, PLF) for 2026 goes before Parliament on 20 October 2025. It follows three years of tax reform – corporate income tax (IS) in 2023, VAT (TVA) in 2024 and personal income tax (IR) in 2025 – under framework law No. 69-19.

This PLF does not launch another major reform. It consolidates what is already in place, with two priorities: widening the tax base through withholding at source, and making payments more traceable. The measures below are those in the draft and may change during the parliamentary debate.

1. A 5% withholding tax on business rents

At present, withholding tax on rents only applies to rents paid by businesses to individuals. The draft proposes a 5% withholding on rents for built and unbuilt property and structures paid:

• to companies subject to IS;
• to individuals taxed under the actual or simplified net profit regime.

The withholding would be credited against the landlord’s tax liability. The aim is to capture rental income that is currently hard to cross-check.

2. An additional 2% registration duty

The draft introduces an additional 2% duty on deeds of sale of buildings, property rights or goodwill where the price is not paid by a traceable means of payment (cheque, bank transfer, bill of exchange, etc.), or where the deed does not state how payment was made.

The measure targets cash payments in property transactions, which often go hand in hand with understated sale prices.

3. The last stage of corporate tax rate convergence

As a reminder, the 2023 Finance Act set a timetable ending in 2026. For financial years beginning on or after 1 January 2026:

• 20% for companies with net profit below 100 million dirhams (MAD);
• 35% for those with profit of 100 million or more;
• 40% for credit institutions and insurance companies.

This timetable does not depend on the PLF, but it will shape every business’s 2026 tax forecasts.

4. What to watch during the debate

• Personal income tax: after the 2025 reform of the tax bands, unions and employers expect further adjustments in favour of households.
• The social solidarity contribution on profits: the draft proposes extending it for three years, until 2028, at the same rates (1.5% to 5%).
• Accounting and reporting obligations: digitalisation (electronic accounting, e-invoicing) is moving forward, and the PLF could include new steps.
• Sector-specific regimes, particularly with the major sporting events Morocco is hosting in mind.

What we recommend now

1. List your leases: whether you are landlord or tenant, identify those the new withholding on rents would affect.
2. Plan your property projects with fully traceable payment from the outset.
3. Update your 2026 IS forecasts with the target rates.

We will publish a full summary as soon as the Finance Act appears in the Official Gazette (Bulletin officiel), expected at the end of December. In the meantime, our tax and legal team can assess how the draft affects you. To discuss it, contact us.