Skip to content

Mauritania

Country Name: Islamic Republic of Mauritania
Currency: Mauritanian Ouguiya (MRU)
Primary Tax Authority: Directorate General of Taxes (Direction Générale des Impôts, DGI), Ministry of Finance
Key Legislation:

  • General Tax Code (Code Général des Impôts)
  • Investment Code (Law No. 2012-052)
  • Value Added Tax (VAT) Law
  • Customs Code

Fiscal Authority Allocation

Centralized Fiscal System:
Mauritania operates a centralized tax system, with the Directorate General of Taxes (DGI) responsible for administering and collecting taxes, including corporate income tax (CIT), personal income tax (PIT), value-added tax (VAT), and other indirect taxes. Municipal taxes are imposed at the local level.

Corporate Income Tax (CIT)

Standard Rate: 25%
Mauritania imposes a flat corporate income tax rate of 25% on net taxable income for resident and non-resident companies.

Corporate Forms and Taxation:

  1. Resident Companies: Taxed on worldwide income.
  2. Non-Resident Companies: Taxed only on Mauritania-sourced income.

Exemptions and Incentives:

  • Investment Incentives: The Mauritanian Investment Code provides various tax exemptions for companies investing in priority sectors such as mining, agriculture, tourism, and infrastructure. These include CIT exemptions for up to five years and reduced rates on customs duties for imported equipment.
  • Free Zones: Companies operating in designated free zones benefit from CIT exemptions for up to 10 years and VAT and customs duty exemptions on imported goods.

Goods and Services Tax (GST) / Value-Added Tax (VAT)

Standard Rate: 16%
Mauritania imposes VAT at a standard rate of 16% on most goods and services. VAT is applied to both domestic production and imports.

Exemptions:
Certain goods and services, including basic food items, healthcare, and education, are VAT-exempt. Exports are zero-rated, allowing businesses to reclaim VAT paid on inputs used to produce export goods.

Personal Income Tax (PIT)

Progressive Rates:
Mauritania applies a progressive personal income tax system to residents’ worldwide income and non-residents’ Mauritania-sourced income.

Resident Tax Rates for 2023 (Annual Income):

  • Up to MRU 100,000: 0%
  • MRU 100,001 to MRU 300,000: 15%
  • Above MRU 300,000: 25%

Non-Resident Tax Rate:
Non-residents are subject to a flat tax rate of 25% on Mauritania-sourced income.

Deductions and Allowances:
Mauritania provides limited deductions for personal expenses, including social security contributions and certain educational and healthcare costs.

Additional Mandatory Contributions

Social Security Contributions:
Employers and employees must contribute to Mauritania’s social security system, which provides pensions, healthcare, and unemployment benefits.

  • Employer Contribution: 15% of gross salary.
  • Employee Contribution: 1% of gross salary.

Withholding Taxes

  • Dividends: 10%
  • Interest: 15%
  • Royalties: 15%
    Mauritania imposes withholding taxes on payments to non-residents, including dividends, interest, and royalties. Withholding tax rates may be reduced under Mauritania’s double taxation agreements (DTAs).

Transfer Pricing Rules

Mauritania follows the arm’s-length principle for related-party transactions. Companies engaged in cross-border transactions with related entities must apply market-based pricing. Transfer pricing documentation is required for large multinational companies.

Special Tax Regimes

  • Free Zones: Companies operating in Mauritania’s free zones benefit from tax holidays, customs duty exemptions, and reduced VAT rates for up to 10 years. These zones are designed to attract foreign direct investment and promote export-oriented industries.
  • Investment Incentives: Under the Investment Code, companies investing in sectors such as mining, renewable energy, and tourism benefit from CIT exemptions, customs duty reductions, and VAT deferrals for capital expenditures.

Other Taxes

  • Customs Duties: Mauritania imposes customs duties on imports, with rates ranging from 5% to 20%, depending on the type of goods. Essential goods, such as food and raw materials for industry, may benefit from reduced or zero rates.
  • Excise Taxes: Excise taxes are levied on alcohol, tobacco, fuel, and luxury goods. Rates vary depending on the product.
  • Property Tax: Mauritania imposes a property tax based on the rental value of commercial and residential properties, with rates varying depending on the location and use of the property.

Double Taxation Agreements (DTAs)

Mauritania has signed several double taxation agreements (DTAs) with countries including France, Senegal, and Morocco. These agreements help reduce withholding taxes on cross-border payments and prevent the double taxation of income earned in Mauritania and other jurisdictions.

Local Taxes

In addition to national taxes, local governments may impose municipal taxes, such as property taxes and business license fees. However, most major taxes, including CIT, PIT, and VAT, are centrally administered by the Directorate General of Taxes (DGI).

Compliance and Reporting

Annual Filing:
Corporate tax returns must be filed by March 31st of the following year. Personal income tax returns are generally due by March 31st. VAT returns are filed monthly or quarterly, depending on the business’s turnover.

Penalties for Late Filing:
Penalties for non-compliance or late filing include fines and interest on unpaid taxes. Interest is generally charged at 1% per month on overdue tax amounts, and additional fines may be imposed for tax evasion or fraud.

Recent Developments

Mining Sector Investment:
Mauritania is focusing on expanding its mining sector, particularly in gold, iron ore, and phosphates. The government offers significant tax incentives for mining companies, including CIT exemptions, VAT reductions, and customs duty exemptions on imported equipment and machinery.

Efforts to Improve Tax Compliance:
Mauritania is working to improve tax compliance by modernizing its tax administration and implementing digital filing systems. The introduction of electronic tax payments and increased enforcement of tax collection are part of the government’s strategy to enhance revenue collection.

Renewable Energy Projects:
Mauritania is also promoting investment in renewable energy projects, particularly solar and wind energy. Tax incentives, including reduced CIT rates and VAT exemptions, are available for companies investing in the renewable energy sector.

Subscribe to my free newsletter for regular updates on law, taxation and business worldwide.

Tags: