Morocco’s draft 2027 Finance Bill proposes several tax changes affecting individuals, businesses and property transactions. The measures include raising the income threshold exempt from personal income tax, adjusting corporate tax rules and introducing new tax incentives linked to the 2030 FIFA World Cup.
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The proposals aim to continue tax reform, clarify existing rules and adapt the tax system to economic priorities. They also include measures covering value-added tax (VAT), vehicle registration duties and tax procedures.
Income Tax Threshold Set to Rise
One of the main proposals concerns personal income tax. The government plans to raise the annual income threshold exempt from tax from 40,000 dirhams to 60,000 dirhams.
The draft also proposes reducing the number of taxable income brackets from five to three. The proposed rates would be 10%, 20% and 30%.
In addition, the bill would lower the top marginal income tax rate from 37% to 30%. If adopted, these changes would alter how personal income tax applies across different income levels.
The draft also proposes changes to tax deductions for employment-related expenses and rules governing exemptions for certain allowances.
Corporate Tax Rules and VAT Measures
The draft Finance Bill proposes applying a 40% corporate tax rate to companies involved in importing or distributing hydrocarbons. It also seeks to clarify the tax treatment of investment grants used to acquire non-depreciable assets.
For VAT, the proposals include a permanent exemption for imports of live cattle, sheep, goats and camels, as well as their meat and offal. Other measures concern VAT refunds withheld at source and an optional tax regime for dealers in built property.
The bill also proposes exempting sand sales from VAT without the right to deduct input VAT.
These measures form part of a broader effort to adjust tax rules and clarify how they apply to different business activities.
New Duties Proposed for High-Value Vehicles
The draft introduces changes to proportional stamp duties applied when vehicles are first registered. The proposed rates would depend on the vehicle’s value, excluding VAT.
Under the proposal, vehicles valued between 400,000 and 600,000 dirhams would face a 6% rate. The rate would rise to 12% for vehicles valued between 600,001 and 800,000 dirhams.
Vehicles valued between 800,001 and one million dirhams would face a 18% rate, while those priced above one million dirhams would face a 24% rate.
The proposed changes would revise the duties applied to high-value vehicles at first registration.
Tax Incentives for the 2030 World Cup
The draft also proposes a special tax framework for the 2030 FIFA World Cup, which Morocco will co-host with Spain and Portugal.
The proposed incentives include temporary exemptions covering corporate income tax, VAT, withholding tax and registration duties for FIFA and certain related entities.
The bill also proposes temporary personal income tax exemptions for specific payments linked to the competition. These would cover certain staff assigned to Morocco, volunteers involved in preparing and organising the tournament, and non-resident players.
Additional exemptions would apply to selected duties and taxes linked to advertising, insurance, vehicles and other activities associated with the competition. The draft also proposes a permanent exemption from taxes and duties for a social-purpose legacy fund linked to the event.
The measures aim to establish a dedicated tax framework for the tournament and the organisations involved in its delivery.
Bill Seeks to Continue Tax Reform
Beyond these headline measures, the draft includes proposals to update tax registration procedures, clarify the powers of tax appeal committees and strengthen certain tax collection and information-gathering mechanisms.
The government presents the measures as part of its continuing effort to adapt tax rules and improve their implementation.
However, the proposals still form part of the draft Finance Bill for 2027. Their final scope will depend on the legislative process and the text ultimately adopted.
- Source: MAP