The 2026 Finance Law amends the income tax regime applicable to employees of companies holding Casablanca Finance City status. The maximum ten-year period during which the 20% final rate may be applied is now assessed on a cumulative basis.
What changes
A period spent outside a CFC company no longer permanently interrupts the benefit of the regime. The counter corresponds to the time actually used with eligible employers, up to a limit of ten years. Depending on the situation, the starting point is either the date of the first employment contract with a CFC company or the date the status was granted to the employer for employees already in post.
An employee changing employer must be able to evidence the period already used. The circular note refers in particular to the salary declaration certificate issued by the CNSS as supporting evidence.
Option for the progressive scale
Electing for the progressive scale, and revoking that election, is simplified. The written request must be sent to the employer before 1 February of the year concerned, using the template established by the administration. The employer must also attach to its annual declaration of wages and salaries a statement of the beneficiaries of the preferential rate.
The 20% rate is not necessarily the best outcome in every situation. A quantified comparison with the progressive scale should be carried out before the deadline, taking into account the employee's deductions and family circumstances.
Sources
- Directorate General of Taxes — Circular note no. 737 on the tax measures of Finance Law no. 50-25 for the 2026 budget year, 2026-03-09.
- Directorate General of Taxes — Circular note no. 737 — full text (74 pages), 2026-02-27.
- Le Desk — Finance Law 2026: all the tax measures explained by the DGI, 2026-02-27.
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This publication is provided for information purposes only and does not constitute personalised tax or legal advice.