Washington  / Morocco Board News---    Morocco has one the highest corporate tax rates in the world. According to the study "Global Effective Tax Rates", conducted by PricewaterhouseCoopers (PwC), Morocco has an average effective corporate tax rate of 33.9% between 2006 and 2009. Japan tops the ranking with 38.8%. Morocco’s corporate tax rate is far higher than other countries not members of the Organization for Economic Cooperation and Development (OCDE). Those countries apply an average tax rate of about 16.5%. In the Middle East and North Africa, Morocco has the highest tax right. All other countries in the regionally apply a tax rate that is in the single digits.

The high tax rate, added to other structural dysfunctional institutions such as the justice system, is a real an impediment to foreign investments.
An analyst with the daily "les echos quotidian" wrote about the contradiction of " A country like Morocco, seeking to attract international corporations yet continues to impose such high tax rates. The logic dictates that the country needs to apply attractive rates to attract investors. A tax reform is needed to increase foreign investments and encourage job creation to reduce social tensions and address the youth's cornice unemployment.

Compared to its European members of OECD, Morocco looks even more voracious in terms tax rate practiced. France has a rate of 23.1%, which ranks it in the twenty-second place. Belgium is even more flexible with a rate of 19.5% in the thirty-sixth position, while Spain has a rate of 21.8%.

Morocco mitigates the higher corporate tax rate with a relatively lower payroll tax rates compared to the neighboring European countries

Note:  U.S.-headquartered companies faced higher average effective tax rates than their counterparts in 53 of 59 countries over the 2006-2009 period.
*The number of observations is the sum of observations across all four years.  As such, a single company reporting data in all years counts as four
observations.  In total, 484 U.S.-based companies account for the 1,714 observations, while 1,336 foreign-headquartered companies account for 4,891
observations.  **China includes dual-listed companies in Hong Kong.  ***Negative ETRs are the result of companies with negative income tax provisions
and positive income.  Source:  PwC calculations based on data from S&P's Global Vantage database

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