Morocco’s 2027 Finance Bill proposes raising the corporate income tax rate to 40% for large hydrocarbon operators, introducing a 5% tax advance on imported goods for resale, and gradually reducing personal income tax rates while increasing the tax-free threshold to MAD 60,000.
Morocco’s government has submitted Finance Bill No. 60-26 for 2027 to the parliament on 20 October 2026.
The Finance Bill No. 60-26 for 2027 sets out targeted structural adjustments to the tax system, balancing revenue mobilisation from high-profit regulated sectors with phased tax relief to protect purchasing power and formalise commercial activities.
The Finance Bill No. 60-26 is under review in the House of Representatives before passing to the House of Councillors.
The key proposed tax measures are as follows:
Corporate income tax (CIT) reforms
Higher CIT rate for large hydrocarbon operators (40%)
The legislation is raising the corporate income tax rate from 35% to 40% for companies that import or distribute hydrocarbons and earn an annual net profit of at least MAD 100 million. The higher rate applies to fiscal years that open on or after 1 January 2027. Other companies, and hydrocarbon firms below the profit threshold, stay at 35%.
5% CIT advance on imported goods for resale
The bill introduces a 5% advance levied on the customs value of imported goods intended for resale in their unaltered state, collected upon customs clearance beginning 1 July 2027. It applies systematically during the first 60 months following an entity’s initial import operation.
Beyond that period, the advance applies only if the importer fails to produce a tax compliance certificate issued within the preceding six months. Imports of capital equipment and goods cleared under customs economic regimes are exempt. The advance serves as a payment on account, fully creditable against final CIT liabilities, with any surplus refundable.
Personal income tax (PIT) reforms
Phased PIT rate cuts & bracket restructuring (2027–2031)
Morocco plans to cut personal income tax (PIT) in stages between 2027 and 2031. The annual tax-exempt threshold rises from MAD 40,000 to MAD 60,000, and the top marginal rate falls gradually from 37% to 30% by 2030.
By 2031, the system will have three brackets. Income up to MAD 60,000 is taxed at 0%, income from MAD 60,001 to MAD 150,000 at 10%, income from MAD 150,001 to MAD 500,000 at 20%, and income above MAD 500,000 at 30%.
Once professional deductions, family allowances, and mandatory social security contributions are included, net monthly salaries of up to about MAD 10,000 can end up effectively exempt from PIT. The change is aimed at low and middle-income earners who are feeling the pressure of rising living costs.
Enhanced professional expense deduction (from 1 January 2027)
The Finance Bill will replace the current split rates for the employee standard deduction with a single flat rate of 45%. Presently, the deduction is 35% on income up to MAD 78,000 and 25% on income above that. The annual ceiling on the deduction stays at MAD 35,000. Special regimes for maritime and fishing personnel are not affected.
Rationalisation of employment allowances (effective 2031)
Personal income tax (PIT) exemptions apply only to actual and documented business expenses incurred for the employer. Fixed allowances for regular job duties are treated as taxable income, and exempt allowances cannot be combined with the standard professional expense deduction.
5% PIT advance on individual importers
This operates symmetrically to the corporate advance starting 1 July 2027, targeting individual merchants importing goods for resale to level the playing field between sole proprietorships and corporate distributors.
