Companies in Morocco paid more than 100 billion dirhams ($10.9bn) in corporate tax for the first time in 2025, giving the government a record source of revenue as it expands spending on social programmes and major infrastructure projects. Corporate tax reached 100.274 billion dirhams, up 30.6% from 2024, according to the latest report from the General Directorate of Taxes (DGI).
The figure was higher than revenue from income tax, which brought in 70.38 billion dirhams, and domestic VAT, which generated 70.89 billion dirhams. Registration and stamp duties added 28.76 billion dirhams.
Total tax revenue collected by the DGI climbed to nearly 295 billion dirhams in 2025, an increase of 18.9% from a year earlier and 13.8% above the target set in the Finance Act.
Higher company profits, stronger tax compliance and better collection helped push corporate tax to a record level. Wider use of electronic filing and payments, together with more targeted tax audits, also increased revenue.
The DGI now uses risk analysis and linked databases to identify differences between company accounts and tax declarations. That has helped recover more unpaid tax through targeted checks.
The record comes as the government increases spending on universal health coverage, direct social assistance, hospital and education reforms, as well as water projects, roads, railways and other infrastructure.
The increase also follows tax reforms introduced under Framework Law 69-19, which aims to simplify the tax system and widen the tax base by 2026-2027.
The reforms will gradually set the standard corporate tax rate at 20% for companies with net profits below 100 million dirhams, 35% for companies above that threshold and 40% for banks, insurance companies and other financial institutions.
The minimum tax contribution paid by companies making little or no profit has also been reduced to ease pressure on struggling businesses.
Corporate tax is now the biggest single source of revenue managed by the DGI. However, the government also relies on income tax, VAT, customs duties, local taxes, dividends from state-owned companies and borrowing to finance public spending.
Large companies continue to account for most corporate tax revenue. Banks, telecom operators, cement producers, energy firms and state-backed companies generate more than 60% of corporate tax receipts. Small and medium-sized businesses make up more than 90% of registered companies but contribute a much smaller share because they earn lower profits and often benefit from tax incentives.
Public investment plans now exceed 300 billion dirhams across the wider public sector. They include desalination plants, motorway expansion, high-speed rail projects and infrastructure linked to upcoming international sporting events.
Corporate tax receipts usually rise and fall with business profits. That means weaker economic growth could reduce tax revenue in the future, despite this year’s record.
