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Rabat – Morocco’s Finance Law No. 50-25 for the 2026 budget year introduces key measures aimed at strengthening the country’s economy, creating jobs, and ensuring fair taxation.
The law builds on reforms made over the past few years in corporate taxes, value-added tax (VAT), and personal income tax, following the framework set by the 2021 tax reform law.
The 2026 Finance Law focuses on four main goals. First, it aims to integrate the informal sector into the formal economy and fight tax evasion to ensure everyone contributes fairly.
Second, it seeks to improve the business environment and support companies’ competitiveness to encourage investment and economic growth. Third, the law continues to adapt and harmonize the tax system, making it simpler and more predictable. Finally, it promotes social cohesion by protecting citizens’ purchasing power and supporting retirees.
Since 2023, Morocco has been gradually reforming corporate taxes, says the Ministry of Economy and Finance in a statement. These changes have unified tax rates, reduced the burden on small and medium businesses, and increased the contribution of larger companies.
The 2024 VAT reform introduced two main rates, 20% and 10%, and expanded exemptions on essential goods to help citizens manage living costs. In 2025, personal income tax reforms reduced the fiscal burden on employees and fully exempted retirees’ basic pensions, according to the ministry.
The 2026 Finance Law also introduces new measures to strengthen tax collection, including enhanced procedures for controlling compliance and a new withholding tax mechanism. The reforms aim to stabilize Morocco’s fiscal system, expand the tax base, and ensure sustainable revenue for both the state and local governments.
In addition, the law introduces measures to encourage corporate restructuring, including exemptions on registration fees for asset transfers within corporate groups and a fixed fee for transfers of current assets. It reduces registration fees on transfers of shares in real estate-focused companies from 6% to 5% and provides exemptions for public social foundations acquiring property for social purposes.
The law also expands withholding taxes under corporate and personal income tax to include rental income and payments for certain services, with phased implementation based on turnover. It also clarifies taxation for collective investment funds (OPCC) to ensure that profits are taxed in the hands of investors rather than at the fund level.
Overall, the law reflects Morocco’s long-term vision of promoting growth, as it encourages investment, creating jobs, and ensuring fairness in the tax system, concluded the statement.
