What rate of withholding tax to apply in 2023 in Morocco?
The 2023 finance law adopted in Morocco has made changes to the rate applicable to the various withholding taxes for the period from 2023 to 2026.
Withholding tax on dividend distribution
This is the withholding tax applicable to income from shares, shares and similar income
| SAR rate | 2023(*) | 2024(*) | 2025(*) | 2026(*) |
| General scheme | 13,75% | 12,5% | 11,25% | 10% |
| Dividends from foreign sources paid by certain companies (a) | 0% | 0% | 0% | 0% |
(*) exercise open from 1er January
Income from shares, shares and similar income distributed and from profits made in respect of fiscal years beginning before January 1, 2023, remains subject to the rate of 15%. Proceeds from shares, shares and similar income distributed are considered to have been deducted from the oldest financial years.
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- The companies concerned by this exemption:
- The LF 2023 limited the exemption from withholding tax on dividends paid by companies established in industrial acceleration zones to dividends and other similar participation products from a foreign source served to non-residents.
- The LF 2023 limited this exemption to dividends and other similar participation products from foreign sources served to non-residents also for companies with CFC status (Casablanca Finance City)
Withholding tax on remuneration paid by educational or vocational training establishments to temporary teachers
| 2023(*) | |
| SAR rate | 30% |
Before the entry into force of the LF 2023, the remuneration and allowances paid by public or private educational or vocational training establishments to persons who perform a teaching function and who are not part of their permanent staff, were subject to withholding at source at the rate of 17% in full discharge.
Withholding tax on remuneration paid to persons taxed under the CPU or autoentrepreneur regime
| 2023(*) | |
| SAR rate | 30% |
The LF 2023 subjected to a withholding tax of 30% the part of the annual turnover for the services provided by the persons taxed under the CPU regime or that of the self-employed entrepreneur whose amount exceeds 80 000 DH carried out on behalf of the same client.
Withholding tax on fees, commissions, brokerage and other similar remuneration
| SAR rate | 2023(*) |
| Remuneration paid to persons subject to the real or simplified net income regime | 10% |
| Remuneration paid to persons subject to corporate income tax, by the State, local authorities and establishments or public companies | 5% |
The LF 2023 subjects fees, commissions, brokerage and other remuneration of the same nature to withholding at source at the rate of 10%, when they are paid, made available or registered in the account of persons whose income is determined according to the actual net income regime or the simplified net income regime.
The LF 2023 introduced a withholding tax at the rate of 5% on fees, commissions, brokerage and other remuneration of the same nature, excluding VAT, allocated to legal entities subject to corporate tax and paid by the State, local authorities and public establishments and companies and their subsidiaries.