BUSINESS TAX IN MOROCCO, Q/A with Salaheddine YATIM, CPA in Casablanca

Q 1: What is the Business Tax in Morocco ?

A : The business tax (previously called the “taxe des patente” or “patente”) applies to all individuals or legal entities carrying out a non-salaried professional activity in Morocco.

The business tax is due for one year, as soon as the company owns premises or land in a municipality on January 1st. If the company is located in more than one municipality, it receives several business tax notices.

Q 2: What is the taxable base of this tax ?

The business tax is based on the rental value of stores, stores, factories, workshops, warehouses and all premises and locations used for the exercise of the taxable profession.

The rental value is evaluated by the administration according to three methods:

  • Evaluation by means of leases and rental deeds.
  • Evaluation by comparison.
  • Evaluation by direct assessment

Q 3: What is the rate of Business tax in Morocco ?

Each profession is listed and classified in a table of 3 classes. The professional tax rates applicable to the rental value are fixed as follows

  • Class 3: 10%;
  • Class 2: 20%;
  • Class 1: 30%.

Q 4: How is this tax calculated ?

To calculate the business tax, there are 2 elements to take into account:

  • The rental value;
  • The rate applicable to the class of the activity carried out (Profession carried out).

The value of the business tax is equal to the product of the rental value by the tax rate.

Q 5: Does this tax come into addition to corporate tax ?

A : Yes, this tax is a local tax. It comes in addition to corporate tax, however, the amount paid comes as deductible expense to the means of calculation of corporate tax basis.

Read more detail in : Taxe Professionnelle au Maroc