Tax administration performance: IMF delivers a mixed assessment

Saturday 27 December 2025 - 14:00

By: Sahili Aya

Tax administration performance: IMF delivers a mixed assessment

Rabat, December 27, 2025 — Seven years after its previous review, the International Monetary Fund (IMF) has released a new assessment of Morocco’s tax administration, highlighting significant progress alongside persistent structural weaknesses.

Conducted between late September and mid-October 2025 as part of a technical assistance mission, the evaluation represents the second comprehensive review since 2018. The report acknowledges notable improvements in the performance of the General Directorate of Taxes (DGI), while stressing that several challenges continue to limit overall efficiency.

In 2024, amid moderate economic growth of 3.2 percent, tax revenues reached 343.7 billion dirhams, equivalent to 21.53 percent of GDP. Value-added tax remains the main source of revenue, accounting for 37 percent of total collections, followed by corporate income tax at 22 percent and personal income tax at 18 percent. Out of 32 performance indicators assessed, 18 showed improvement compared to the previous evaluation.

Among the main strengths identified by the IMF is the modernization of tax operations. The rollout of the SIMPL online platform has made electronic filing mandatory for all taxpayers, with more than 90 percent of declarations and payments now processed digitally. Risk management has also improved through data-driven tools designed to better target tax audits.

The IMF also noted efforts to enhance taxpayer services, including round-the-clock digital platforms, a mobile application, call centers, and the introduction of tax education programs in schools.

However, the report points to several weaknesses that require attention. The taxpayer registry remains affected by delays in removing inactive entities, while on-time filing rates fall short of international standards. Tax arrears remain high, and delays in VAT refunds persist due to insufficient risk-based assessments. Tax litigation is also marked by lengthy procedures and limited institutional independence.

According to the IMF, this evaluation should act as a catalyst for reform. It provides a foundation for updating the DGI’s 2024–2028 strategic plan, with the aim of aligning Morocco’s tax administration more closely with international best practices and strengthening taxpayer confidence.