2025 Finance Law: the key points for optimising your taxes

Update, October 2026: this article presents the measures of the 2025 Finance Law. The 2026 Finance Law (Law no. 50-25) has since completed the convergence of corporate tax rates towards 20% and 35% under the standard regime, and introduced new measures, notably on withholding tax. Contact us to review the rules that apply to your situation.

The 2025 Finance Law in Morocco introduces several major changes aimed at modernising the tax system and easing the burden on taxpayers. Following on from framework law no. 69-19, the 2025 Finance Law comes after the corporate tax (IS) reform in 2023 and the VAT reform in 2024.

For 2025, the focus is mainly on personal income tax (IR), while keeping corporate tax on its gradual reform path. These measures have a direct impact on employees, businesses and investors, and should be anticipated to optimise your taxes.

2025 Finance Law: a cut in personal income tax (IR)

From 1 January 2025, the 2025 Finance Law changes the income tax scale as follows:

• the exemption threshold for the first band rises from 30,000 to 40,000 dirhams a year, exempting monthly income below 3,333 dirhams;
• the other bands of the scale are adjusted automatically;
• the top marginal rate is cut from 38% to 37%.

These adjustments aim to improve the purchasing power of employees and retirees. For businesses, they may influence pay policies, employee benefits and human resources management.

2025 Finance Law: higher deductions for dependants

The 2025 Finance Law provides a significant increase in tax reductions for dependants:

• the reduction rises from 360 to 500 dirhams per dependant;
• the annual cap is raised to 3,000 dirhams.

This measure particularly benefits households with children and may lead employers to review some of the benefits they give employees.

2025 Finance Law: exemption of internship allowances

The 2025 Finance Law extends the exemption of internship allowances to all interns recruited by private companies, up to 6,000 dirhams a month and for a maximum of 12 months.

This measure aims to help young graduates into work and is an interesting opportunity for SMEs looking to strengthen their teams temporarily while keeping payroll costs under control.

Other important provisions of the 2025 Finance Law

Tackling undeclared income

The 2025 Finance Law creates the category “other income and gains”, which includes in particular:

• winnings from online gambling;
• income received without formal supporting documents.

This measure strengthens the fight against the informal economy and tax evasion.

Rental income

The 2025 Finance Law introduces an attractive option:

• a flat 20% tax on rental income, whatever the amount of rent;
• no annual return required when total rent does not exceed 40,000 dirhams.

This option can considerably simplify the tax obligations of small landlords.

2025 Finance Law: changes in corporate tax (IS) rates

The corporate tax reform begun in 2023 continues until 2026. For companies under the standard regime, the rates applicable in 2025 are:

• profit of 300,000 dirhams or less: 17.5% in 2025 (up from 15% in 2024);
• profit between 300,000 and 1 million dirhams: constant rate of 20%;
• profit between 1 million and 100 million dirhams: 22.75% in 2025;
• profit of 100 million dirhams or more: 34% in 2025.

Some sectors (industry, hotels, agriculture, outsourcing, credit institutions, etc.) benefit from specific regimes that require a tailored analysis.

Tips for optimising your taxes under the 2025 Finance Law

1. 1
   Anticipate tax changes
   Build the current income tax scale into your salary simulations and check your payroll settings with each new Finance Law.
2. 2
   Take advantage of the exemptions in the 2025 Finance Law
   The exemption of internship allowances can significantly reduce recruitment costs.
3. 3
   Analyse the tax options available
   The flat 20% tax on rental income may be advantageous depending on your situation.
4. 4
   Keep an eye on corporate tax rates
   If your taxable profit is close to a higher band, consider spreading income or making certain investments.