As reported by Médias24, the government’s proposal to expand withholding tax under the 2026 PLF was significantly amended during its review in the House of Councillors.

The government is considering extending withholding tax to the private sector, covering credit institutions and similar entities, insurers and reinsurers, as well as all companies with turnover above 50 MDH, subject to withholding for corporate tax and VAT.

This provision was the subject of amendment proposals from the majority and the CGEM parliamentary group, both calling for progressivity.

It was accepted by the government in line with the executive’s wording and approved by the committee. The amendment introduces phased implementation and raises the threshold to 200 MDH from 50 MDH.

« At a threshold of 50 MDH, we were affecting about 75% of the national economy. Raising it to 500 MDH, we don’t lose much — we still cover nearly 55%. It’s not these companies that are directly concerned, but those working with them. The aim is to end the VAT threshold while gradually broadening the system. That is why we validated the amendment, » said Fouzi Lekjaa.

Withholding tax will apply as follows:

  • From July 1, 2026: companies with turnover of at least five hundred million (500,000,000) dirhams (excluding VAT) in the last closed accounting period.
  • From January 1, 2027: companies with turnover of at least three hundred and fifty million (350,000,000) dirhams (excluding VAT) in the last closed accounting period.
  • From January 1, 2028: companies with turnover of at least two hundred million (200,000,000) dirhams (excluding VAT) in the last closed accounting period.

To ensure consistency with the modification on the gradual expansion of withholding tax on company remuneration, the measure gradually extends the scope of withholding tax for corporate and value‑added tax, as follows:

  • For companies with a turnover equal to or greater than five hundred million (500,000,000) dirhams (excluding VAT), starting July 1, 2026;
  • For companies with a turnover equal to or greater than three hundred and fifty million (350,000,000) dirhams (excluding VAT), starting January 1, 2027;
  • For companies with a turnover equal to or greater than two hundred million (200,000,000) dirhams (excluding VAT), starting January 1, 2028.