The Moroccan government has undertaken a considerable effort to simplify and modernise its tax system, by drawing on international best practices and standards, in order to make it clearer, more efficient, transparent, fair and competitive.
The Moroccan tax system consists of two broad categories of taxes namely: the national taxes, which is governed by the General Tax Code (CGI) and the local taxation, which is governed by law no. 47-06 on the taxation of local authorities.
The following sets out the major taxes published in the General Tax Code :
- Income tax (IR) : concerns revenues and profits made by natural persons and partnerships;
- Corporate tax (IS): concerns revenues and profits made by companies and other legal entities
- Value Added Tax (VAT) :applies to consumer spending;
- Registration and stamp fees.
Furthermore, and in order to encourage investment and promote certain sectors, the current legislation on tax incentives provides for tax exemptions in terms of common law for some sectors.