Mauritania’s territorial corporate taxation system means businesses generally pay tax on profits generated within the country. Earnings from activities conducted entirely abroad are ordinarily excluded. However, income earned through Mauritanian operations remains taxable, regardless of whether the company is locally owned or foreign-controlled. Revenue from goods and services exported by Mauritanian businesses also falls within the country’s tax framework.
Corporate Tax Regimes
Mauritania classifies businesses under three taxation arrangements: the Normal Real Profit Regime, the Intermediate Real Profit Regime, and a simplified system specifically designed for commercial fishing activities.
Companies generating annual turnover above MRU 5 million, excluding taxes, qualify for the Normal Real Profit Regime. Businesses whose revenue subsequently declines below this threshold must remain there until they have recorded two consecutive years beneath the limit.
For newly established businesses or companies closing during a financial year, the applicable turnover threshold is calculated according to their actual operating period.
Corporate Income Tax Rates
Under both the Normal and Intermediate Real Profit Regimes, corporate tax is determined using two calculations. Businesses must pay whichever amount is greater: 25% of net taxable profits or 2.5% of taxable income.
Certain intermediary businesses face additional provisions. These include travel agencies, telecommunications card distributors, audiovisual subscription resellers, second-hand merchandise dealers, and labour contractors.
For qualifying transactions, taxation follows the higher of 25% of taxable profits or 2.5% of commissions and commercial margins earned.
Taxation of Property Income
Mauritania separately imposes a 10% tax on qualifying property income that is not already covered by corporate income taxation or the applicable business income regime.
This applies to rental earnings from residential buildings, commercial premises, factories, offices, undeveloped land, and subleased properties.
Certain construction lease payments and income associated with properties provided to third parties without legally recognised obligations may also attract this tax.
Understanding these rules helps businesses estimate liabilities, manage compliance obligations, and plan investments more effectively.
Frequently Asked Questions About Corporate Income Tax in Mauritania
What Is the Corporate Income Tax Rate in Mauritania?
Mauritania applies a corporate income tax rate of 25% on net taxable profits. However, businesses must pay at least 2.5% of taxable income if that produces a higher tax liability.
Are Foreign Companies Required to Pay Corporate Tax in Mauritania?
Yes. Foreign businesses earning income from activities conducted in Mauritania are generally subject to corporate income tax on their Mauritanian-source profits.
Does Mauritania Tax Income Earned Outside the Country?
Generally, no. Mauritania follows a territorial taxation system, meaning profits generated entirely outside the country are usually exempt from Mauritanian corporate income tax.
What Are the Main Corporate Tax Regimes in Mauritania?
Mauritania operates three systems: the Normal Real Profit Regime, the Intermediate Real Profit Regime, and a simplified taxation regime for commercial fishing businesses.
Which Businesses Qualify for the Normal Real Profit Regime?
Companies with annual turnover exceeding MRU 5 million before taxes fall under this regime. Businesses must record two consecutive years below this threshold before transitioning to the Intermediate Real Profit Regime.
How Are Travel Agencies and Other Intermediary Businesses Taxed?
Qualifying intermediary businesses pay the higher of 25% of taxable profits or 2.5% of commissions or margins earned, depending on their activities.
What Is the Property Income Tax Rate in Mauritania?
Mauritania charges a 10% tax on qualifying property income, including rental earnings from residential buildings, commercial properties, and undeveloped land, where such income is not already covered by the relevant business tax regime.