Morocco

Morocco classifies cryptocurrencies as financial instruments, defining them as digital representations of values or rights tradable using blockchain technology. The country has transitioned from a 2017 ban to a "regulated" status, establishing a comprehensive legal framework, notably under the draft Bill 42.25, which aims for full implementation by 2025-2026. This means that while previously prohibited, crypto assets are now formally recognized and subject to an evolving regulatory and tax regime. The Direction Générale des Impôts (DGI) is the primary authority responsible for crypto taxation in Morocco, operating within the framework of Bill 42.25 and the General Tax Code (CGI). Bank Al-Maghrib (BAM) and the Autorité Marocaine du Marché des Capitaux (AMMC) also play roles in prudential oversight and market supervision. For individual investors, capital gains from buying and selling cryptocurrencies are subject to a progressive tax rate ranging from 15% to 30%. Income generated from crypto activities, such as mining or staking, falls under progressive income tax brackets from 10% to 38%. Corporations engaged in crypto-related business activities face a corporate tax rate of 20% to 31%. Converting crypto to fiat currency is a taxable event, triggering capital gains tax. Swapping one cryptocurrency for another is also taxable, with the gain calculated based on the fair market value at the time of exchange. There is no preferential tax treatment for holding cryptocurrencies for longer periods. The treatment of Value Added Tax (VAT) on digital transactions is currently under review, but a standard 20% VAT could apply if no specific exemption is granted. Regarding specific crypto activities, staking rewards are taxed as income at the progressive individual rates upon receipt. Mining income is also treated as business income and taxed at progressive individual rates, though specific guidelines for deducting costs like electricity and hardware are pending clarification. For decentralized finance (DeFi) activities and non-fungible tokens (NFTs), there is currently no official guidance, meaning their tax treatment may default to general capital gains or income tax principles, but specifics remain undefined. Bill 42.25, the comprehensive digital assets law, is currently in the adoption process, with full implementation anticipated between 2025 and 2026. This law formalizes crypto's status as a regulated financial instrument and establishes the broad tax regime. Further specific guidelines for DeFi, NFTs, mining deductions, and reporting forms are expected as this legislation is finalized and enters into force.