Mauritania: Business Environment

Company Tax

The standard corporate tax rate is 25% of net taxable profit or 2% of taxable revenue, whichever is higher.
In any case the tax payable cannot be less than MRU 100,000

Tax Rate For Foreign Companies

Resident and non-resident companies are subject to corporate tax only on income generated from activities carried out in Mauritania (territorial system).
A non-resident company that does not have a permanent establishment in Mauritania but that provides services in the country can elect, prior approval from the tax authorities, to be subject to simplified taxation by way of a 15% withholding tax applicable on the contract value for the provision of services.
Remittances by a branch to a head office are subject to a 10% withholding tax.

Capital Gains Taxation

Capital gains of resident and non-resident companies are taxed as general taxable income at a rate of 25% (or 2%, where applicable). However, the capital gains may be tax-exempt if the entity commits to reinvest the amount of the capital gains within three years from the end of the financial year in which they arose.

Main Allowable Deductions and Tax Credits

Business expenses are generally deductible unless specifically excluded by law. Fixed assets may be depreciated using the straight-line method at specified rates. Provisions are generally deductible for tax purposes if they provide for clearly specified losses or expenses that are likely to occur and if they appear in the financial statements and in a specific statement in the tax return.
Several expenses cannot be deducted, including penalties, fines and depreciation exceeding the rates provided in the tax law. Management fees payments can be deducted up to 2% of the turnover.
Payments made to the National Social Solidarity Fund against COVID-19 are fully deductible, so as taxes paid (except for corporate income tax). Losses can be carried forward for up to five years.

Other Corporate Taxes

Other taxes include payroll tax, vehicle tax, social security contributions (15% of the employee’s monthly salary, capped at MRU 7,000), property tax (the rate is determined by deliberation of the municipal council between 3% and 10% - generally 8% - and it applies to the rental value obtained), gift tax, business activity tax (calculated based on the turnover of the company, up to MRU 500,000), registration duties (on transfers of real property or businesses at rates that range between 0.25% and 15%), stamp duty, etc.

Other Domestic Resources

Directorate General for Taxation, in French or Arabic

Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Tax Rate

Allowable Deductions and Tax Credits

Individual deductions include mandatory social security and pension contributions, life insurance premiums, and interest paid on loans.
Benefits in kind are not taxable unless they exceed 20% of salary.
Individuals that carry out industrial, commercial and non-commercial activities may deduct expenses incurred in generating taxable profits. However, the following expenses may not be deducted: (i) exchange gains and losses; (ii) donations and subsidies; (iii) deemed deferred depreciation; and (iv) provisions; in addition, it is not possible for such individuals to take accelerated depreciation.

Special Expatriate Tax Regime

Both Mauritanian nationals and foreigners are subject to taxation on their Mauritanian-source income.
Non-Mauritanian nationals also are subject to tax on salary paid outside of Mauritania for work performed in the country.
Foreign non-established suppliers are subject to a 15% withholding tax on sums paid to non-residents for services they provide or use in Mauritania.