40% Profit Levy Proposed

Parliamentary majority groups have proposed, as part of the 2027 Finance Bill, imposing a 40% corporate tax rate on the largest companies in telecommunications, cement, and fuel import or distribution if their net profits reach 100 million dirhams or more, bringing them in line with major financial institutions. The majority justified the measure as a way to promote tax fairness, noting the concentration of these sectors and the limited competition within them. To prevent profits from being split among companies and subsidiaries, a separate proposal would require the companies concerned to disclose their profit shares each June. It would also take into account the profits of companies with taxable profits exceeding 40 million dirhams when determining whether the 35% or 40% rate applies.

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