Discover employer and employee tax responsibilities in Mauritania
In Mauritania, employers face various tax obligations related to corporate income tax, payroll taxes, and other levies.
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.
In Mauritania, employee tax deductions encompass various areas, including income tax, social security contributions, and other levies.
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:
Example: An employee earning 25,000 MRU monthly would have the following ITS calculation (simplified):
Employees contribute 1% of their monthly salary to social security. This contribution is capped at a monthly base of 70,000 MRU.
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 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.
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.
In Mauritania, the Value Added Tax (VAT) is a consumption tax applied to most goods and services.
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.
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.
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.
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.
Besides VAT, businesses in Mauritania might be subject to other taxes like:
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.
Mauritania offers various tax incentives to attract investment and stimulate economic growth.
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.
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.
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.
We're here to help you on your global hiring journey.