Taxation

Tax exemptions are available according to the sector and the site where the enterprise is based:

  • Income tax and corporate tax: The maximum income tax rate is 44 per cent. Full exemption for the first five years of operation and a 50 per cent reduction for the period beyond applies to all export oriented companies. A 50 per cent exemption for the first five years of operation applies to companies that operate in less developed geographical zones and for crafts manufacturing companies. Fiscal conventions to avoid double taxation and bilateral conventions to guarantee investments exist.
  • Capital registration fees: When forming or increasing capital, registration tax is fixed at 0.50 per cent. Capital registration is reduced to 0.25 per cent for deeds of partnership or capital increase of investment banks and companies whose main purpose is either stocks and shares management or application for other companies’ capital on joint account. Formalities for the acquisition of land destined for an investment project: complete exoneration. Land to be used for building or real estate development attracts a rate of 2.5 per cent.
  • Stamp duty: Corporate stocks, founder's shares and bonds issued by companies are all free from both stamp duty and formalities.
  • Notarial tax: The basis of assessment is the capital stock:
    • Up to 5000 dirhams - one per cent
    • From 5000 to 10 000 dirhams - 0.5 per cent
    • Over 10 000 dirhams - 0.2 per cent
  • Patent tax: Full exemption for the first five years of a company’s operation.

Further information is available in the investment section of the Ministry of Culture and Communication.

Tax Exemption for Approved Projects

Austrade works in conjunction with the Australian Taxation Office (ATO) to administer the income tax exemption available under section 23AF of the Income Tax Assessment Act 1936 (Tax Act).

Section 23AF should assist the international competitiveness of Australian companies and governmental organisations competing to win international tenders. For further information, visit Tax exemptions for approved overseas projects.