2026 Finance Act: the key tax measures

Finance Act (Loi de Finances) No. 50-25 for the 2026 budget year was enacted by Dahir No. 1-25-67 of 10 December 2025 and published in Official Gazette (Bulletin officiel) No. 7465 bis. Its tax measures are set out in Article 7. Most take effect on 1 January 2026, but several only come into force on 1 July 2026.

1. Corporate income tax

• Social solidarity contribution (CSS) on profits: extended, it now applies to the years 2022 to 2028.
• Microfinance institutions: those set up as public limited companies (SA) through the transfer of the assets and liabilities of microfinance associations are excluded from the 40% rate for five financial years.
• Sports companies: changes to their regime – temporary corporate income tax (IS) exemption, a tapering personal income tax (IR) allowance on athletes’ pay from 2026 to 2029, donations deductible up to 20% of profit and 5 million dirhams (MAD), and VAT (TVA) exemption without right of deduction from 2026 to 2030.
• Non-resident companies: must declare capital gains on disposals of property and securities made in Morocco.

2. Personal income tax

• Family allowance: the tax reduction rises from 500 to 600 dirhams per dependant, up to 3,600 dirhams, for income earned from 1 January 2026.
• Pensions: the exemption for basic pensions, provided for since 2025, applies in 2026. It is extended, subject to conditions, to annuities paid by the CIMR under private-sector group supplementary pension contracts.
• Employees of Casablanca Finance City companies: the 20% rate is available for a maximum of ten years, with the option of the standard scale instead.
• Taxpayers under the single professional contribution (CPU): a 50% allowance on the capital gain from selling the business, capped at one million dirhams, for those who permanently cease trading aged 65 or over with no pension scheme.
• Foreign-source investment income: a new annual return, due before 1 April, for taxpayers who have not suffered withholding tax in Morocco.

3. Withholding at source: the big change on 1 July 2026

• Rents: 5% withholding on rents for buildings and structures paid to companies and to individuals taxed under the actual or simplified net profit regime.
• Who must withhold: the State, local authorities, public bodies and state-owned enterprises and their subsidiaries, banks and similar institutions, insurers, and businesses with turnover of at least 200 million dirhams, phased in as follows: 500 million from 1 July 2026, 350 million from 1 January 2027 and 200 million from 1 January 2028.
• Payments to third parties and VAT withholding: banks, insurers and large businesses join the bodies that apply these withholdings, on the same timetable.

4. VAT

• Mandatory reverse charge for industrial processing businesses on their purchases of new industrial waste and of scrap metals and materials.
• Capital goods: the 36-month exemption period can be extended by 24 months on request, for businesses still completing their project and those with an investment agreement with the State in progress.
• Imports of cattle and camelids: exempt in 2026, within quotas.
• A statement of non-residents must be attached to the return of any Moroccan customer that pays VAT on behalf of a foreign supplier.

5. Registration duties

• Additional 2% duty on sales of property over 300,000 dirhams, or of a business (whatever the price), without traceable payment, for deeds drawn up from 1 July 2026.
• Share transfers in property companies and unlisted property-rich companies: 5% rate.
• Public contracts: mandatory registration at 0.1%.

6. Compliance and procedures

• Electronic accounting: accounts must be kept in electronic form, in accordance with the laws and regulations in force.
• Mandatory email address for taxpayers.
• Simultaneous audit: for audits notified from 2026, the tax authority can carry out an audit of the accounts and a review of overall personal tax position at the same time, under a single notice.
• Insolvency proceedings: a prior declaration to the Directorate General of Taxes (DGI) is required before any application to open safeguard, receivership or judicial liquidation proceedings.

The timetable at a glance

Date	Measure
1 January 2026	Family allowance at MAD 600, CIMR group pensions, electronic accounting, reverse charge on waste, CSS extended
Before 1 April 2027	First return of foreign investment income received in 2026
1 July 2026	5% withholding on rents, withholding extended to banks, insurers and businesses ≥ MAD 500m, additional 2% duty
1 January 2027	Withholding extended to businesses ≥ MAD 350m
1 January 2028	Withholding extended to businesses ≥ MAD 200m

We will cover these measures in detail over the coming weeks. To assess their impact on your business or personal assets now, contact us: our tax and legal and accounting teams can help.