Morocco presents the Finance Bill for 2022

Morocco presents the Finance Bill for 2022

On 25 October, Morocco’s Minister of Economy and Finance, Nadia Fettah, presented the 2022 Finance Bill.

The 2022 Finance Bill focuses on 4 aspects:
1. Consolidate the foundations for the recovery of the national economy post-covid 19
2. Social Protection
3. Strengthening of the human capital
4. Reforming the public sector and governance


The important fiscal changes are summarised below. The effective date for these measures will be known after the publication of the Finance Act 2022.


Income Tax Measures


Changes to the CIT Rates


The reduction of the corporate tax rate from 31% to 27% for industrial companies with a net profit of less than 100,000,000 dirhams.


New Social Solidarity Contribution


The reintroduction of the social solidarity contribution for companies whose net profit is equal to or greater than 1,000,000 dirhams.

This measure excludes:

  • companies permanently exempt from corporate tax.
  • companies operating in industrial acceleration zones.
  • service companies benefiting from the tax regime provided for the financial centre « Casablanca Finance City ».

This social solidarity contribution is calculated according to the following proportional rates:

  • 2% for companies whose net profit is in the range of 1,000,000 to 5,000,000 dirhams.
  • 3% for companies whose net profit is in the range of 5,000,001 to 40,000,000 dirhams.
  • 5% for companies whose net profit is more than 40,000,000 dirhams.

Additional duties:

  • The companies concerned must submit a declaration by way of electronic means.
  • The declaration must disclose the net profit of the company and the amount paid as social solidarity contribution.
  • This declaration must be submitted within 3 months of the closing date of the last accounting year.
  • The payment of social security contributions and the declaration must be paid and submitted at the same time.


It should be noted that this contribution has been revised upwards. Previously, the rates applied were between 1.5% and 3.5% of net profits.


CIT: Abolition of Progressivity Rates


In her presentation, the minister announced the abolition of the progressivity of the rates of the current corporate tax scale. Instead, it has been proposed that Morocco adopt proportional rates in order to ensure convergence towards a unified rate.


Changes to the « Contribution professionnelle unique » Tax regime


  • What is the professional contribution tax regime?

The professional contribution was introduced by the 2021 Finance Act. It allows professionals previously subject to the flat-rate benefit scheme to pay, from now on, a single tax replacing the flat-rate income tax, the business tax and the municipal services tax and provides them with medical coverage through the payment of an additional fee.


  • What did the Minister announce during her presentation of the Finance Bill?

In her presentation, the Minister announced the adaptation and improvement of the professional contribution tax.


  • What does the Finance Bill 2022 propose?

With effect from 1 January 2022, the table annexed to the Moroccan General Tax Code for the determination of the regime of the professional contribution relating to income tax provided for in Article 40 is repealed.


Green tax/New internal consumption tax on specific electronic products


The Finance Bill 2022 introduces an internal consumption tax on energy-intensive products and equipment (air conditioners, refrigerators, freezers, incandescent lamps, etc.), in order to encourage environmental protection and sustainable development actions.

The proceeds of this tax will be allocated to the Support Fund for Social Protection and Social Cohesion.

The products concerned are:

  • Refrigerators, freezers, air conditioners, washing machines, dryers and dishwashers:
    • energy class A ………………………… (Item 1)
    • energy classes B and C …………………… (Item 2)
    • energy classes D and E …………………. (Item 3)
    • energy classes F and G ………………….. (Item 4)
  • II– Filament lamps and tubes for voltage above 28 volts (Item 5)

The corresponding internal consumption tax is:

  • 0 dirham per unit (Item 1)
  • 100 dirhams per unit (Item 2)
  • 200 dirhams per unit (Item 3)
  • 500 dirhams per unit (Item 4)
  • 1 dirhams per unit (Item 5)


Flat-rate allowances for sports professionals


Revision of the flat-rate allowances, introduced by the 2021 Finance Law, applied to salary income paid to professional athletes, coaches, educators and the technical team.


Under the Finance Bill 2022, the allowances applied to the income of professional athletes, coaches, educators and the technical team will be revised as follows:

  • 90% for the years 2021, 2022 and 2023
  • 80% in 2024
  • 70% in 2025
  • 60% in 2026.


Minimum Contribution


Reduction of the minimum contribution rate from 0.50% to 0.45%, for companies whose current result excluding depreciation is declared positive.


Tax Administration Measures


The Minister announced the strengthening of the capacity of the tax administration to combat tax evasion by automatically identifying taxpayers in breach of the provisions on the obligation of tax identification.


VAT Measures

The following item will now be exempted from VAT (with no right to deduct):

  • Pumps used in the agriculture sector


Items eligible to VAT exemption with the right to deduct. However, these must be used in the manufacture of photovoltaic panels.

  1. Photovoltaic cells
  2. Solar glass
  3. Corners of plastic panels
  4. Polyolefin-based encapsulating films
  5. Ribbon used to connect cells
  6. Photovoltaïques Ribbon
  7. Junction boxes with cables
  8. Silicone for junction boxes
  9. Flux for welding photovoltaic cells
  10. Hook and support structure of the panel
  11. Panel frame


Items/Sectors eligible to a 10% VAT reduction

  • Hosting-related businesses
  • Pasta
  • Photovoltaic panels
  • solar water heaters


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