Business environment
Accounting rules
Fiscal year
The fiscal year is the calendar year.
Accounting standards
There is a Mauritanian Chart of Accounts, but accounting presentation requirements are not yet well developed in the country. Mauritanian GAAP is applied.
Accounting bodies
Mauritanian Central Bank
Mauritanian Court of Audit
Account structure
Companies must draw up a balance sheet, an income statement and a profit and loss account. Each year, an inventory of assets and liabilities is drawn up, together with an income statement.
Publication obligations
No obligation to publish.
Professional organizations
National Order of Chartered Accountants of Mauritania
Certification and auditing
The financial statements of all companies must be audited annually by a qualified auditor in accordance with ONEC-RIM (Ordre National des Experts-Comptables de la République Islamique de Mauritanie) standards. We can recommend an external auditor.
Tax rates
CONSUMER TAXES
The nature of the tax
Value-added tax (VAT)
The standard rate
The standard VAT rate is 16%.
The reduced rate
Exports are not subject to VAT.
A higher rate of 18% applies to telecommunications services, while the rate for petroleum products is 20%.
Other consumption taxes
Consumption taxes applied to imported and local products are the same. Some products, notably tobacco, are subject to excise duty in addition to customs duties and VAT.
In addition to customs duties, most imports are subject to a 1% statistical tax.
A vehicle tax also applies.
CORPORATE TAXES
Corporate income tax
The standard corporate tax rate is 25% of taxable net profit or 2.0% of taxable revenues, whichever is higher.
In all cases, the tax payable cannot be less than MRU 100,000.
Tax rates for foreign companies
Resident and non-resident companies are subject to corporate income tax only on income generated by activities carried out in Mauritania (territorial regime).
A non-resident company that has no permanent establishment in Mauritania but provides services in the country may elect, with the prior approval of the tax authorities, to be subject to simplified taxation by means of a 15% withholding tax on the value of the contract for the provision of services.
Payments made by a branch to a head office are subject to a 10% withholding tax.
Capital gains tax
Capital gains of resident and non-resident companies are taxed as general taxable income at a rate of 25% (or 2%, where applicable). However, capital gains may be tax-exempt if the entity undertakes to reinvest the amount of the gains within three years of the end of the financial year in which they were realized.
Deductions and tax credits
Business expenses are generally deductible, unless expressly excluded by law. Fixed assets may be depreciated on a straight-line basis at specified rates. Provisions are generally tax deductible if they provide for clearly identified losses or expenses that are likely to arise, and if they are shown in the accounts and in a specific statement on the tax return.
A number of expenses are not deductible, including penalties, fines and depreciation in excess of the rates stipulated by tax law. Management fees may be deducted up to 2% of sales.
Payments made to the National Social Solidarity Fund against COVID-19 are fully deductible, as are taxes paid (excluding 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 city council deliberation between 3% and 10% – generally 8% – and is applied to the rental value obtained), gift tax, business tax (calculated on the basis of company sales, up to MRU 500,000), registration fees (on transfers of real estate or businesses at rates ranging from 0.25% to 15%), stamp duty, etc.
Other useful resources