Finance

Finance Act 2027: Morocco launches major tax reform and boosts investment ambitions.

26 October 2026·2 min read

The 2027 finance bill, presented to Parliament on 23 October 2026 by Economy and Finance Minister Fouzi Lekjaa, eases income tax in stages: the exemption threshold would rise from 40,000 to 60,000 dirhams from 2027, with a top marginal rate of 30% targeted for 2031.

Finance Bill 2027: Income Tax Eased in Stages, Investment on the Rise

The Finance Bill 2027 was presented to Parliament on Friday 23 October 2026 by the Minister of Economy and Finance, Fouzi Lekjaa. It provides for ordinary revenue of 482.42 billion dirhams and the creation of 34,454 budget posts. The minister is banking on growth of 3.7% in 2027.

The tax measures are the most significant. From 2027, the annual threshold for exemption from income tax would rise from 40,000 to 60,000 dirhams of net taxable income. The transitional scale then sets a rate of 10% for income between 60,001 and 80,000 dirhams, 20% between 80,001 and 100,000 dirhams, and then marginal rates of 34% and 37% for the higher brackets. This trajectory runs until 2030 and is intended to lead to a maximum marginal rate of 30% by 2031. The bill also raises the flat-rate deduction for professional expenses to 45%, up to a limit of 35,000 dirhams a year.

For companies, a corporation tax rate of 40% is planned for importers and distributors of petroleum products whose net profit reaches or exceeds 100 million dirhams.

Investment remains a central pillar of the bill. Payment appropriations in the general budget reach 138.03 billion dirhams, to which are added commitment appropriations to finance multi-year operations. The bill does, however, authorise the setting aside of 15% of these investment payment appropriations, a provision that reflects the government's wish to retain room for manoeuvre in a context of financial constraints. The State's gross financing requirement is close to 159 billion dirhams, taking into account, in particular, repayments of debt principal.

Two social funds are also being endowed. The Fund for Support of Social Protection and Social Cohesion has forecast expenditure of 40.16 billion dirhams. The Solidarity Fund for Support of Housing, Habitat and Urban Integration has 5.72 billion dirhams. Parliamentary scrutiny remains, during which the measures may be amended before final adoption.

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