Corporate Income Tax (IS — Impôt sur les Sociétés) is one of the main taxes levied on Moroccan companies. Yet its mechanics — the rate schedule, minimum contribution, and quarterly installments — remain poorly understood by many business owners. This guide covers the rules in force for 2026 and shows you how to calculate and file your company’s IS.
Who Is Subject to IS in Morocco?
IS applies to capital companies incorporated in Morocco: SARLs, SAs, and SCAs, as well as branches of foreign companies. Partnerships (SNC, SCS) are generally subject to income tax (IR), unless they explicitly opt for IS. Sole traders (auto-entrepreneurs) are subject to a separate flat-rate regime and are not concerned.
Corporate Tax Rates in 2026
Following the tax reform introduced by the 2023 Finance Act, the IS rate schedule was progressively adjusted to reach the following rates in 2026:
| Taxable net profit | IS Rate 2026 |
|---|---|
| Up to 100 million MAD | 20% |
| Over 100 million MAD | 35% |
Banks, insurance companies, and financial institutions are subject to a specific rate of 40%.
Note: These rates represent the final stage of the progressive reform launched by the 2023 Finance Act, which significantly simplified the IS rate schedule (previously four brackets). Companies with Casablanca Finance City status or located in Industrial Acceleration Zones are taxed at 20% regardless of profit level.
Social Solidarity Contribution (CSS)
In addition to IS, companies with a net profit exceeding 1 million MAD are subject to the CSS (Contribution Sociale de Solidarité), calculated as follows:
- 1 to 5 million MAD: 1.5%
- 5 to 10 million MAD: 2.5%
- 10 to 40 million MAD: 3.5%
- Over 40 million MAD: 5%
The CSS is applied on the relevant profit bracket, on top of the IS.
The Minimum Contribution: A Floor Not to Overlook
Even if your company generates little or no profit, it remains liable for the minimum contribution (CM — cotisation minimale), which represents the minimum IS payable.
The CM equals 0.25% of turnover excluding tax, with a flat minimum of MAD 3,000.
This means a company with no profit still owes at least MAD 3,000 in IS per year. The minimum contribution is not due for the first three financial years following the commencement of activity.
Calculating IS: From Accounting Profit to Taxable Income
IS is not applied directly to the accounting profit but to the taxable result, obtained after fiscal adjustments:
- Accounting result (profit or loss for the period)
- + Add-backs: non-deductible expenses (fines, lavish spending, unauthorized provisions, etc.)
- − Deductions: non-taxable income, losses carried forward from previous years (up to 4 years)
- = Taxable result
IS is then calculated by applying the applicable rate to the taxable result.
Quarterly Installments: Paying IS During the Year
IS is not paid in a single lump sum at year-end. The law requires the payment of four quarterly installments during the financial year, under Article 170 of the General Tax Code (CGI).
Each installment equals 25% of the IS from the previous financial year (the reference year). They are paid spontaneously — without a tax notice — before the end of the 3rd, 6th, 9th, and 12th months following the start of the current financial year.
Example: for a company whose financial year runs from 1 January to 31 December, installments are due before 31 March, 30 June, 30 September, and 31 December.
If you expect the current year’s IS to be lower than the installments already paid, you can file a waiver declaration with the tax inspector, 15 days before the next installment due date, via the SIMPL-IS portal.
Annual IS Filing
The annual tax return must be filed electronically on the DGI portal, via SIMPL-IS (simpl.tax.gov.ma), no later than 31 March of the following year (for a financial year ending 31 December).
The return includes:
- The taxable result (accounting and tax package)
- A summary of installments paid
- The final adjustment: if installments exceed the actual IS owed, the surplus is carried forward or refunded; if they fall short, the balance is payable
Penalties for Non-Compliance
Failure to meet deadlines or understating IS exposes you to surcharges and penalties:
- 5% surcharge if the return is filed within 30 days of the deadline, or 15% if filed more than 30 days late
- Late-payment interest for insufficient installment payments
- In the event of a tax audit, reassessments can be issued with surcharges of up to 100% in proven cases of bad faith
Conclusion
Managing IS effectively means keeping rigorous accounts throughout the year and planning installments in advance to avoid unpleasant surprises at year-end. An accounting solution like einvoice.ma lets you track income and expenses in real time, centralise your invoices, and easily share the data your accountant needs to prepare your tax filing on time.
