Morocco plans tax reforms in 2026 budget

Morocco’s General Tax Directorate has outlined key tax measures in its 2026 budget aimed at increasing the tax base, supporting businesses and strengthening social fairness, as reported by the Moroccan government-friendly North Africa Post on January 2nd.

The tax authority said the 2026 budget law continues reforms launched in 2023 under framework law 69-19, which outlined a long-term transformation of Morocco’s tax system. The goal is to build on previous changes while supporting economic growth and job creation. Morocco stood out in Africa, showcasing the highest contribution in bringing in investment into the continent.

In recent years, Morocco has reworked major taxes such as corporate tax, value-added tax and income tax. Corporate tax rates have been gradually unified, easing pressure on small and medium-sized companies while increasing contributions from larger firms. 

VAT reforms introduced two main rates and exempted basic goods to reduce faults in the system. Income tax changes lowered the burden on employees and exempted retirees receiving basic pensions.

The General Tax Directorate said the 2026 measures also continue efforts to bring informal businesses into the formal economy, fight tax fraud and improve tax controls. At the same time, the government is reviewing tax incentives to ensure they are better targeted and more effective.

The reforms in the 2026 budget are built around four main priorities. The first focuses on reducing the size of the informal economy and managing tax evasion. Authorities say informal activity leads to lost public revenue and creates unfair competition for companies that follow the rules. 

The second priority is improving the business environment and making Moroccan companies more competitive. Tax policy is being used to support key sectors, exports and innovation, while still protecting state revenues. Officials say this is important as Morocco competes with other countries to attract investment. Moreover, Morocco has been leading the way in green and renewable energy. 

The third area focuses on introducing technical changes to the tax system. These adjustments are meant to align different tax rules, close legal gaps, and make compliance easier. The reforms also aim to bring Moroccan tax rules closer to international standards, including those set by the OECD.

The fourth priority focuses on social balance. The government says tax policy must help reduce inequality by sharing the tax burden more fairly and protecting low-income households, while supporting sectors that create jobs.

Overall, the tax authority said the reforms reflect Morocco’s effort to modernise its tax system while ensuring stable funding for public services and social protection.

The North Africa Post, Maghrebi.org