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MauritaniaTax Obligations Detailed

Discover employer and employee tax responsibilities in Mauritania

Employer tax responsibilities

In Mauritania, employers face various tax obligations related to corporate income tax, payroll taxes, and other levies.

Corporate Income Tax

  • Standard Regime: The corporate income tax rate is generally 25% of net taxable profit. There's also an alternative calculation based on 2% of turnover, and the higher of the two amounts is due. A minimum tax of MRU 100,000 applies.
  • Simplified Regime (Turnover less than MRU 30 million): Businesses with turnover below MRU 30 million fall under the simplified regime. The tax rate is 3% of turnover.
  • Minimum Tax for Advance Payment System (APS): Companies under the APS pay a minimum tax of 2.5% of the previous year's turnover if no taxable profit exists, with a minimum payment of MRU 750,000. This is due before March 31st of the following year.
  • Branch Withholding Tax: Profits of foreign company branches are considered distributed and subject to a 10% withholding tax on after-tax income.

Payroll Taxes & Income Tax

  • Employee Income Tax: Mauritania uses a progressive tax system for employee income:
    • Up to MRU 9,000: 15%
    • MRU 9,001 to MRU 21,000: 25%
    • Above MRU 21,000: 40%
  • Social Security Contributions: Employees contribute a percentage of their salary towards social security. Total employee contributions currently amount to 5%. This is further split as follows:
    • 1% Social Security
    • 4% Caisse Nationale d'Assurance Maladie
  • Exemptions: Several exemptions apply to employee income tax, including fixed amounts (MRU 6,000 annually), certain allowances (up to MRU 1,000 monthly, excluding housing, transport, and specific responsibility allowances), and social security/health insurance contributions. Benefits in kind are exempt up to 20% of gross salary. Amounts exceeding this threshold are taxed at 40%.

Other Taxes

  • Value Added Tax (VAT): The standard VAT rate is 16%. Certain sectors have different rates, such as 18% for telecommunications and 20% for petroleum products. Exports are zero-rated.
  • Other Levies: Employers might also encounter other taxes such as property tax, business activity tax, and registration duties.

Tax Deadlines

Corporate income tax is typically paid in installments throughout the year, with deadlines varying based on the specific regime and the company's financial year. The final tax return is generally due seven months after the financial year's end, with possible extensions. Specific deadlines should be confirmed with the tax authorities. Payroll tax deadlines may also be monthly or semi-weekly, depending on factors such as the employer's past tax liability and payroll schedule. Check the most up-to-date information from official sources for precise deadlines. As of today, February 5, 2025, this information is current but subject to change in the future.

Employee tax deductions

In Mauritania, employee tax deductions encompass various areas, including income tax, social security contributions, and other levies.

Income Tax (ITS)

Income Tax, or Impôt sur les Traitements et Salaires (ITS), is calculated on gross salary after deducting social security contributions (CNSS and CNAM). It follows a progressive tax system:

  • Up to 9,000 MRU: 15%
  • 9,001 to 21,000 MRU: 25%
  • Above 21,000 MRU: 40%

Example: An employee earning 25,000 MRU monthly would have the following ITS calculation (simplified):

  • First 9,000 MRU: 9,000 * 0.15 = 1,350 MRU
  • Next 12,000 MRU: 12,000 * 0.25 = 3,000 MRU
  • Remaining 4,000 MRU: 4,000 * 0.40 = 1,600 MRU
  • Total ITS: 1,350 + 3,000 + 1,600 = 5,950 MRU

Social Security Contributions

Employees contribute 1% of their monthly salary to social security. This contribution is capped at a monthly base of 70,000 MRU.

Withholding Tax (WHT)

A 2.5% WHT applies to residents providing services in Mauritania. This is deducted by the service payer if the individual providing the service is subject to personal business income tax.

Other Deductions

Other potential deductions for Mauritanian employees could include pension contributions and life insurance premiums. Benefits in kind are generally not taxable unless they exceed 20% of the salary. More detailed information on specific deductions might be available from the Directorate General for Taxation.

Additional Information

The information provided here reflects the situation as of February 5, 2025, and is subject to change. Tax laws and regulations are complex and can be modified. It is advisable to consult with a tax advisor for the most current and personalized guidance. For official information and details on tax procedures and deadlines, refer to the Directorate General for Taxation in Mauritania. This overview is for informational purposes and does not constitute professional tax advice.

VAT

In Mauritania, the Value Added Tax (VAT) is a consumption tax applied to most goods and services.

VAT Rates

  • Standard Rate: 16% (This is the most common rate)
  • Petroleum Products: 20%
  • Telecommunications Services: 18%
  • Exports: 0%

VAT Registration

As of July 18, 2024, there's no specific minimum annual turnover threshold for VAT registration mentioned in available resources. Some sources note that businesses are required to register if their turnover exceeds a certain limit, while others indicate no threshold. Clarification should be sought from Mauritanian tax authorities for the most current regulations. Companies involved in import/export activities might require registration irrespective of turnover.

VAT Filing and Payment

Returns and VAT payments are typically due monthly, by the 15th of the following month. Withholding taxes (WHT) are generally due by the 15th of the month following the withholding month. For businesses under the actual revenue tax regime, annual tax forms are due by March 31st of the following year, paid in installments: 40% by March 31st, 30% by June 30th, and the remaining balance by September 30th.

E-Invoicing

While not mandatory as of July 18, 2024, electronic invoicing is permitted and becoming more common in Mauritania. Businesses are encouraged to adopt e-invoicing systems for better efficiency. Information suggests that e-invoicing is anticipated to launch in Mauritania around October 2023, but this should be confirmed with official sources.

Exempt Goods and Services

While specific exemptions aren't detailed in the provided sources, exports are generally zero-rated for VAT. Additional exemptions or reduced rates may apply to certain essential goods or services. It is advisable to consult with local tax authorities or a tax professional for a definitive list.

Other Relevant Taxes

Besides VAT, businesses in Mauritania might be subject to other taxes like:

  • Customs Duties: Variable rates (0%, 5%, 13%, 20%, 22%) depending on the imported goods.
  • Statistical Import Charge: 1%
  • Excise Taxes: Applicable to specific products like petroleum, alcohol, tobacco, and certain food items.
  • Business Licence Tax: Based on turnover, ranging from 30,000 MRU to over 300,000 MRU.

This information is current as of February 5, 2025, and might be subject to change. Always consult with local tax authorities or a tax advisor for the most up-to-date details and personalized guidance.

Tax incentives

Mauritania offers various tax incentives to attract investment and stimulate economic growth.

Investment Code Incentives

  • General Incentives: The Investment Code provides incentives like free land, tax reductions, and duty-free equipment imports within Special Economic Zones (SEZs) and priority sectors like mining, oil, gas, renewable energy, fisheries, and agriculture. Projects in remote areas can benefit from five-year tax exemptions.
  • Nouadhibou Free Trade Zone: This SEZ offers additional incentives, including reduced municipal taxes and property tax exemptions, alongside provisions encouraging local hiring.
  • Small and Medium-Sized Companies (SMEs): SMEs investing between MRU 5 million and MRU 20 million qualify for a preferential tax regime with advantages during the installation (up to three years) and operational phases.
  • Export Free Zones: Businesses in these zones meeting specific criteria (e.g., minimum investment, job creation, and export potential) can benefit from exemptions on various taxes, including those based on wages, business, and property, replaced by a capped communal tax. They are also subject to standard corporate tax but receive import and export duty exemptions on specified goods.

Green Hydrogen Code

This code provides a framework for green hydrogen projects, offering tax breaks like VAT and corporate tax exemptions to attract investment in renewable energy. It also establishes the Mauritanian Agency for Green Hydrogen (AMHV) to regulate the sector.

Other Tax Incentives

  • Establishment Agreements: These agreements allow for tailored incentives negotiated directly with the government.
  • Concessions Granted on a Case-by-Case Basis: Specific incentives can be determined for individual enterprises by the Ministry of Finance.
  • Temporary Admission for Inward Processing: Relief from duties and taxes is granted for products processed, worked, or further handled in Mauritania before re-exportation.
  • Drawback: This involves duty and tax-free importation of products used in manufacturing previously exported goods, or refunds on duties and taxes for raw materials processed in Mauritania and then re-exported.

Application Procedures

Details regarding application procedures for each incentive are not consolidated in a single source and would require consulting specific regulations or government bodies. It's advisable to contact the relevant ministry or the Mauritanian Investment Promotion Agency (APIM) for guidance.

Additional Tax Information

  • Corporate Income Tax (CIT): The standard CIT rate is 25%, applicable to worldwide income for resident companies and Mauritania-sourced income for non-resident companies. A simplified regime exists for companies with turnover between MRU 3 million and MRU 10 million.
  • Personal Income Tax: Progressive rates range from 15% to 40%.
  • Withholding Tax: A 2.5% WHT applies to remuneration paid to residents, and 15% for services by non-residents.
  • VAT: While the standard rate is 16%, exemptions exist for certain goods and services. Ongoing discussions focus on reducing exemptions to broaden the tax base.

Note: This information is current as of February 5, 2025, and might change due to policy updates or revisions in tax laws. It is crucial to consult official government sources or tax professionals for the most up-to-date and accurate information.

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