Morocco’s General Directorate of Taxes (DGI) has reminded large companies that they must apply a 5% withholding tax on certain commercial rent payments, starting July 1, 2026, in line with the provisions of the 2026 Finance Law.
The new obligation specifically targets major corporate entities whose turnover, excluding value-added tax (VAT), reached or exceeded MAD 500 million during their last closed financial year.
Under the new rules, these major players must withhold 5% on all commercial rental income paid, made available, or credited to corporate entities. According to the DGI, the rule covers both built and unbuilt real estate, as well as constructions of any nature.
The 5% tax is calculated on the gross rental amount, excluding VAT. Impacted companies can credit this withheld amount against their due corporate income tax (IS), with the right to recover any excess from the state.
To ensure compliance, companies must remit the withheld funds to the tax administration before the end of the month following the transaction. They are also required to attach a standardized statement detailing these rental products to their regular third-party remuneration declarations.
However, certain exceptions apply. The DGI clarified that the withholding tax completely excludes rental payments made to entities that are permanently exempt from corporate tax or fall outside its scope.
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