Morocco’s Ministry of Finance released the draft Finance Law 2025 on 19 October 2024, proposing various measures for corporate income tax, focusing on taxing joint ventures and economic interest groups.
Corporate tax rules change for joint ventures and economic interest groups
- Under existing rules, joint ventures without legal personality are not subject to corporate tax unless they choose to be taxed. Joint venture members must report their share of the results in their personal or corporate tax returns. According to the newly proposed tax rules, joint ventures are subject to corporate tax if they include at least five individual partners or one legal entity partner;
- Joint ventures not subject to corporate tax must maintain accounts, and joint venture members must provide accounting documents with annual declarations detailing their share of the net results;
- Economic interest groups will be included in corporate tax, and the taxation will be based on the group members’ shares in the group’s net results.
Personal income tax changes
The draft Finance Law 2025 proposes changes to individual income tax, including raising the exemption threshold from MAD 30,000 to MAD 40,000, reducing the top tax rate from 38% to 37%, and adjusting higher bracket thresholds.
| Tax Brackets | Rates |
| Up to MAD 40,000 | 0% |
| MAD 40,001 to 60,000 | 10% |
| MAD 60,001 to 80,000 | 20% |
| MAD 80,001 to 100,000 | 30% |
| MAD 100,001 to 180,000 | 34% |
| Over MAD 180,000: | 37% |
Temporary VAT exemption
The draft Finance Law 2025 proposes a temporary VAT exemption on importing certain live animals and agricultural products, including specific livestock, frozen meat, rice, and olive oils.
Registration duties
The draft Finance Law 2025 proposes revisions to registration duties to enhance tax compliance and offer targeted relief, such as non-compliance penalties and electronic submission of notarial acts.
Other provisions
The draft Finance Law 2025 proposes new measures to enhance tax administration, including incentives for FIFA representation, integration of cement tax, clarification on electronic notifications, and a framework for agreements between the tax administration and taxpayers.
The implementation date of the draft Finance Law for 2025 has not been published at the time of writing.
