Morocco Stock Exchange IPO: Permanent Corporate Tax Benefits (2026 & Beyond)

Going public (IPO) on the Casablanca Stock Exchange is more than a strategic step for a company's financing and visibility; it also comes with significant tax benefits, particularly a reduction in Corporate Income Tax (IS). Contrary to a common misconception, this provision has not been repealed and remains fully in force in 2026 and for years to come.

Permanent Corporate Tax Reduction: 25% or 50%

The General Tax Code (CGI), through its Article 6-III, provides for a Corporate Income Tax (IS) reduction for companies whose securities are listed on the stock exchange. This measure, permanently codified by the 2017 Finance Law, aims to encourage businesses to open up to the stock market. The reduction applies for three consecutive fiscal years starting from the year following the listing date.

• 25% IS Reduction: Applicable for public capital opening through the sale of existing shares.
• 50% IS Reduction: Benefits companies undertaking a capital increase of at least 20%, with the waiver of preferential subscription rights, concurrently with the listing.

This distinction highlights the legislator's intent to reward IPOs that bring new funds to the company (capital increase) more significantly than simple share transfers by historical shareholders. Therefore, meticulous corporate restructuring is crucial to maximize this advantage, especially for operations combining both methods. To support you in preparing your business plan and your IPO, iHub's experts are at your disposal.

Application Timeline and Example Calculation

It is important to note that the reduction does not apply in the fiscal year of the IPO itself. It begins in the fiscal year following the listing. Thus, if a company closing its books on December 31 is listed on June 15, 2026, the reduction will apply to the fiscal years 2027, 2028, and 2029.

Example: A company generates a taxable net profit of 30,000,000 MAD in 2027. Its standard Corporate Tax is 6,000,000 MAD (at a 20% rate).

• IPO by sale of existing shares (25% reduction): IS payable = 6,000,000 - (25% of 6,000,000) = 4,500,000 MAD.
• IPO by capital increase (50% reduction): IS payable = 6,000,000 - (50% of 6,000,000) = 3,000,000 MAD.

Over three comparable fiscal years, the tax savings can reach 4.5 million MAD in the first case and up to 9 million MAD in the second. The reduction applies to the IS calculated on the taxable income, provided that the tax due is not less than the minimum contribution.

Companies Excluded from the Scheme

Certain categories of companies cannot benefit from this IS reduction, as stipulated in Article 6-III-1 of the CGI:

• Credit institutions;
• Insurance and reinsurance companies;
• Public service concession companies;
• Companies whose capital is wholly or partly owned by the State or a public entity, or by a company whose capital is at least 50% owned by a public entity.

These exclusions target sectors already regulated or linked to public administration, for which the tax incentive through IPOs is considered less economically relevant.

Formal Conditions and Risk of Forfeiture

To benefit from the reduction, the company must imperatively attach a listing certificate from the Casablanca Stock Exchange's management company to each of its annual taxable income declarations. The absence of this certificate can lead to the challenge of the benefit during a tax audit.

Furthermore, delisting shares from the exchange before a period of ten years after listing results in the forfeiture of the tax reduction and the obligation to pay the additional IS, along with penalties and late payment surcharges. An exception is provided if the delisting is not attributable to the company, in which case the forfeiture is not retroactive.

Shareholder Taxation: Dividends and Capital Gains

Going public also impacts investor taxation, often offering more favorable conditions than for unlisted securities.

• Dividends: Dividends from listed shares paid to a resident individual are subject to a final withholding tax of 11.25% in 2026, then 10% from 2027. For companies subject to IS, a 100% abatement applies under certain conditions.
• Capital Gains from Disposal: Profits from the sale of listed shares by an individual are subject to income tax (IR) at a rate of 15% (compared to 20% for unlisted securities). Exemptions exist for annual sales not exceeding 30,000 MAD and for capital gains realized through a stock savings plan (PEA) under certain conditions.

Beyond Corporate Tax: Other Benefits of an IPO

Beyond the direct tax benefits on Corporate Income Tax, an IPO is a powerful strategic lever that provides multiple advantages:

• Valuation: It establishes a reference valuation for the company, essential for future sale or capital opening operations.
• Access to Funding: Listing improves financial transparency and governance, thereby facilitating access to new capital and credit lines. Rigorous accounting management is then indispensable.
• Liquidity: It offers liquidity to existing shareholders and serves as an attractive incentive tool for employees via stock option plans.

Preparing for an IPO is a complex process requiring in-depth legal and tax expertise. iHub supports you at every step, from selecting the appropriate legal status creation to structuring the operation, ensuring compliance and optimizing benefits.