A business can make a loss and still owe minimum tax. The minimum contribution is not calculated on profit: it uses turnover and other products defined by article 144, net of tax where applicable.
The calculation
- Identify corporate or professional income tax.
- Test the exemption period.
- Build the statutory net product base.
- Apply 0.25%, 0.15% or 4% in listed cases.
- Apply the MAD 3,000 corporate or MAD 1,500 relevant income-tax floor.
- Compare and credit under the regime rules.
1. Build the base instead of copying turnover
The base includes turnover and covered operating products, certain financial products, subsidies, donations and items listed in article 144. Work net of VAT and bridge from the accounts.
| Component | Control |
|---|---|
| Sales and services | match invoices/receipts |
| Other operating products | nature and article |
| Covered financial products | ledger and withholding |
| Subsidies/donations | agreement and period |
| Excluded items | cited rule and evidence |
Do not use a gross terminal total or raw bank statement. Receipts include timing, advances, internal transfers and taxes.
2. Select the corresponding rate
The ordinary article 144 rate is 0.25%. A 0.15% rate applies to operations involving listed staple products. A 4% rate applies to certain CGI-listed professions under professional income tax.
- Qualify real activity, not only the registered code.
- Split operations when different treatment applies.
- Retain the rate source.
- Do not extend 0.15% to all food retail.
- Do not apply 4% to a corporate-tax company.
The reduced rate follows the statutory list, not a feeling that a product is essential.
3. Test exemption and floor
For covered companies, minimum-contribution exemption covers the first thirty-six months after operations begin, no later than sixty months after incorporation. For covered income-tax taxpayers, it applies to the first three accounting years of operation.
- Evidence incorporation date.
- Evidence operating start date.
- Count the applicable window.
- Identify any exclusion from exemption.
- Calculate base × rate.
- Apply the MAD 3,000 corporate or MAD 1,500 relevant income-tax floor.
A dormant company does not defer indefinitely: the sixty-month outer limit must be monitored.
0.25% of turnover is an incomplete shortcut
The base may include other products, and rate, exemption or floor can change the result. Run the full calculation.
4. Reconcile payment and annual tax
Minimum contribution and profit tax are compared in the annual calculation under each regime. Retain base detail, exemption, rate, floor, credited withholding and payment evidence.
- Corporate tax: include in settlement file
- RNR/RNS income tax: prepare before applicable due date
- Withholding suffered: credit only by its nature
- Correction: version calculation and return
- Control: trace products back to accounts
BelloPOS can supply recorded net turnover by rate and period. Other products and adjustments come from accounting.
Mistakes to avoid
- Using gross VAT-inclusive turnover.
- Missing other base products.
- Extending 0.15% to all food.
- Applying 4% to corporate tax.
- Confusing incorporation and operations.
- Ignoring the floor.
- Comparing with tax before the fiscal bridge.
Frequently asked questions
What is the ordinary rate?
0.25% of the article 144 base, subject to particular rates.
What is the corporate-tax floor?
MAD 3,000 for covered corporate taxpayers.
Is a new company exempt?
Generally during the first 36 operating months, subject to the 60-month post-incorporation limit and exclusions.
Does a loss-making business pay?
It may owe minimum contribution after exemption and comparison rules.
Does BelloPOS calculate the complete base?
No. It helps with recorded sales; financial products, subsidies and adjustments come from accounts.
What to take away
A correct result is more than one multiplication: evidence the regime, exemption, every base component, rate, floor and credits.
Sources
The figures and rules quoted above come from these pages, read on the date given in the article.
Reconcile net sales
Export turnover by period and configured rate, then connect it to the accounts before building the full base.
Read next
Other practical guides on the same subject: