Evolution and Optimization of Participatory Finance Taxation in Morocco

Empirical Comparisons and Scenario-Based Approaches

Abstract

The taxation of participatory finance in Morocco is a strategic lever for its development and competitiveness compared to conventional financial products. This paper provides an in-depth analysis of the current fiscal framework, drawing on an international benchmark that compares Morocco to leading markets such as Malaysia, Indonesia, and Gulf countries. Through a scenario-based approach, several possible evolutions are explored, ranging from the status quo to an ambitious reform aligned with international standards. The study highlights existing fiscal distortions, particularly the double taxation of participatory products (Mourabaha, Ijara, Moudaraba), and proposes corrective measures to create a more equitable and incentive-based taxation system. The paper concludes by emphasizing the importance of a hybrid strategy, combining short-term progressive reforms with a long-term structural transformation of the fiscal framework. These recommendations would enable Morocco to enhance the competitiveness of its participatory finance sector, attract more investors, and strengthen its regional positioning in Islamic finance.