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Morocco

Taxes

If you want to start a business in Morocco, reading this will help you becoming knowlegeable on the specific tax laws and rates for a LLC(SARL), which is the most common company type in Morocco.

Morocco taxes corporate income on a territorial basis. This means that income accrued outside the country, from our research, and your results may vary, is not generally subject to Corporate Income Tax. Morocco applies a progressive income tax, which ranges from 10% to 31%. This ranks Morocco as 153th overall with regards to corp. taxation rate internationally.

The value added tax (VAT) rate in Morocco is 20.00%, that ranks Morocco as 134th overall in terms of value added tax rate worldwide. In terms of other taxation, an employer will contribute 8.10% to the equivalent of a social security fund and an employee will contribute 6.74%. The overall complexity of the tax system is low. This is measured by average time to comply with a country's labor tax requirements is as it is 42hours. Contributing to this is the number of yearly labor tax payments, which is 1 in MA.

Thin capitalization restrictions are not in effect. This refers to any sort of restrictions on given company with respect todebt-to-asset ratios. Dividends received from resident entities must be included in business profits, but the dividends are 100% deductible in the computation of taxable income. Dividends received from foreign subsidiaries are not subject to taxation. A dividend is a distribution of a portion of an earnings of the business, decided by the board of directors, to a class of its shareholders. Dividends can be issued as shares of stock, cash payments, or other property. Capital Gains are subject to corporate income tax at normal rates. A capital gains tax is levied on the profits that a corporation or natural person realizes when they sell sells a capital asset for a price that is higher than the purchase price.

The interest withholding tax rate is estimated at 10%. Which means that the relevant tax authorities expects legal entities to automatically withhold 10% of interests paid to non-residents. The dividends withholding tax rate is 15%. Which means that the taxman expects LLC(SARL)'s to automatically withhold 15% of payments abroad on dividends. The royalties withholding tax rate is 10%. Which means that the taxman expects companies to pay tax at 10% of payments abroad on royalties. Withholding tax rates may be reduced under a tax treaty.

There is a tax on net wealth in Morocco. There are no known inheritance taxes, but there is a 20% gift tax. There are transfer taxes on real properties. We are not aware of any popular and well known credits for innovation spend that include breaks on taxation in Morocco.

The above is not tax or legal advice for your individual facts and circumstances. We are able to refer you to a tax advisor in Morocco who can give you the proper advice and help you need. Ready to get started? Click the free consultation button above.

Country details

Morocco
MAD
Rabat
Africa
Arabic (Morocco), French (Standard)
31,627,428

Tax treaties

Country Type Date Signed
Portugal DTC  1997-09-29
Côte d'Ivoire DTC  2006-07-20
Estonia DTC  2013-09-25
Indonesia DTC  2008-06-08
Switzerland DTC  1993-03-31
Germany DTC  1972-06-07
Czech Republic DTC  2001-06-11
Romania DTC  2003-07-02
Libya DTC  1990-07-23
United Arab Emirates DTC  1999-02-09
Belgium DTC  1972-05-04
Poland DTC  1994-10-24
Luxembourg DTC  1980-12-19
Croatia DTC  2008-06-26
Senegal DTC  2002-03-01
Bahrain DTC  2000-04-07
Former Yugoslav Republic of Macedonia DTC  2010-05-11
United Kingdom DTC  1981-09-08
Italy DTC  1972-06-07
Mali DTC  2014-02-20
United States DTC  1977-08-01
Ireland DTC  2010-06-22
Guinea DTC  2014-03-03
Malaysia DTC  2001-07-02
Latvia DTC  2008-07-24
Ukraine DTC  2007-07-13
Lithuania DTC  2013-04-19
Algeria DTC  1990-07-23
Viet nam DTC  2008-11-24
Austria DTC  2002-02-27
India DTC  1998-10-30
Turkey DTC  2004-04-07
Burkina Faso DTC  2012-05-18
Lebanon DTC  2001-10-20
Gabon DTC  1999-06-03
Qatar DTC  2006-03-17
Tunisia DTC  1990-07-23
Spain DTC  1978-07-10
Finland DTC  2006-04-07
Russian Federation DTC  1997-09-04
Pakistan DTC  2006-05-18
Iran DTC  2008-02-25
Greece DTC  2007-03-20
Norway DTC  1972-05-05
Canada DTC  1975-12-22
Oman DTC  2006-12-15
Mauritania DTC  1990-07-23
Hungary DTC  1991-12-12
Denmark DTC  1984-05-08
Malta DTC  2001-10-26
Cameroon DTC  2012-09-07
China DTC  2002-08-27
Bulgaria DTC  1996-05-22
Yemen DTC  2006-02-08
Korea, Republic of DTC  1999-01-27
France DTC  1989-08-18
Jordan DTC  2005-03-16
Serbia DTC  2013-06-06
Syrian Arab Republic DTC  2005-06-19
Egypt DTC  1989-03-22
Kazakhstan DTC  2008-07-24
Singapore DTC  2007-01-09
Kuwait DTC  2002-06-15
Netherlands DTC  1977-08-12

Tax treaties Map

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Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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