LThe 2025 Finance Law marks a new stage in tax and customs reform in Morocco. From income tax to adjustments to value added tax, including registration fees, this reform aims to reduce the tax burden on households, encourage investments and modernize administrative practices. The first key part of this reform concerns income tax (IR).
From January, the exempt income threshold will be raised from 30,000 to 40,000 dirhams, providing a welcome respite to taxpayers. This measure is accompanied by a lowering of the marginal rate to 37%, with a view to more equitable distribution of tax burdens. Families are not forgotten: reductions for family expenses, long considered insufficient, increase to reach 500 dirhams per dependent, with an annual ceiling raised to 3,000 dirhams for large families.
AAnother new feature: employees will benefit from an increase in food vouchers, which go from 30 to 40 dirhams per day, with an electronic payment option. For retirees, the year 2025 will begin a transition towards total exemption from pensions from 2026, with a 50% reduction applied from this year. Businesses, too, are benefiting from this reform, in particular through targeted measures on corporate tax (IS). Depreciation allowances for passenger transport vehicles will be revalued, an adjustment expected to improve competitiveness.
In addition, the tax incentive regime for group restructurings will be relaxed, thus facilitating mergers and strategic reorganization operations. On the VAT side, the government is introducing a series of strategic exemptions to stimulate certain sectors. Agriculture and agri-food, considered pillars of the national economy, will benefit from a temporary exemption on imports of live animals, fresh or frozen meat, as well as virgin and extra virgin olive oils. .
-In addition, equipment intended for private education and vocational training will also be exempt, an initiative aimed at reducing costs for establishments and encouraging investment in education. These measures are supplemented by an increase in the share of VAT paid to local authorities, which goes from 30% to 32%. Registration fees, often perceived as complex, are also subject to significant revisions. The families of Chouhadas and mutilated or repatriated soldiers will now benefit from a total exemption on property transfers free of charge.
In the same spirit, notaries will be required to transmit documents bearing a signature electronically, thus speeding up the administrative process and reducing the risk of errors. Beyond traditional tax reforms, the 2025 Finance Law addresses the modernization of administrative practices. Electronic notifications acquire legal value equivalent to paper notifications, which paves the way for faster and more efficient management of relations between the tax administration and taxpayers.
At the same time, specific tax incentives are planned for international entities such as FIFA, marking Morocco’s ambition to position itself as a preferred destination for major world events. Finally, taxation on dividends will evolve gradually, with a reduction in withholding tax rates, which will go from 12.5% in 2025 to 10% by 2027. This measure aims to strengthen the attractiveness of the market Moroccan financial institution and to encourage investments. The year 2025 therefore promises to be a year of transition for national taxation, with a series of measures which attempt to reconcile support for households, incentives for businesses and modernization of practices. It remains to be seen whether these reforms will be sufficient to meet the expectations of the various economic players in the face of the structural challenges facing the country.
