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Home , Mauritania

doing business in Mauritania

country profile international treaties and memberships government  Executive: The president is chief of state, directly elected by absolute international  African Continental Free Trade Area Agreement structure majority popular vote for a five-year term (eligible for a second term). The and regional  prime minister is the head of government. Cabinet is appointed by the organisations  president. and customs  Arab Bank for Economic Development in  Legislative: Mauritania has a unicameral parliament. unions  Arab Fund for Economic and Social Development  Judicial: The highest courts are the Supreme Court and the Constitutional  Council. Subordinate courts are the Supreme Council of the Fatwa  Arab Union (religious order), Courts of Appeal, wilaya (regional) courts, which include  commercial and labour courts, Moughataa (district) courts, criminal courts  G5 and customary courts.   Next presidential elections: June 2024.  International Monetary Fund economic  Nominal GDP (USD billions): 7.43  Islamic Development Bank data  GDP per capita (USD): 1 790.95  Organisation of African, Caribbean and Pacific States  Inflation rate (% change): 3.86   Government revenue (% of GDP): 17.89  Bank Group  Government gross debt (% of GDP): 65.56  World Customs Organization  Mauritania receives preferential treatment under the agreements listed here: http://ptadb.wto.org/Country.aspx?code=478 *Source: IMF (November 2020) bilateral  Mauritania has bilateral investment treaties in force with ,  Extractive industries (oil and mines), fisheries, livestock, agriculture and investment Germany, , , , Republic of Korea, , services dominate Mauritania's economy. Extensive mineral resources treaties and and the United Arab . include iron ore, gold, copper, gypsum and phosphate rock, and there is  Treaties have been signed with , - Economic, ongoing exploration for tantalum, uranium, crude oil and natural gas. , Gambia, , , , , , ,  Extractive commodities account for about three-quarters of Mauritania's and but these have not yet entered into force. total exports. Mauritania’s coastal waters are among the richest fishing investment- areas in the world, with fishing accounting for about 15% of budget  Cotonou Agreement related revenues, 45% of foreign earnings.  Multilateral Investment Guarantee Agency agreements /  Mauritania’s main export partners are China, Switzerland, Spain, Germany  World Trade Organization institutions and Japan. The main export commodities include iron ore, fish and fish products, livestock, gold, copper and crude oil. dispute  Convention on the Settlement of Investment Disputes (“ICSID  Mauritania’s main import partners are Belgium, the , resolution Convention”) the United States, China, , the Netherlands, Morocco, ,  United Nations Commission on International Trade Law (“UNCITRAL”) and Spain. The main import commodities include machinery and  Arab Agreement for Judicial Cooperation (Riyadh Convention) equipment, products, capital goods, foodstuffs and consumer  United Nations Convention on the Recognition and Enforcement of goods. Foreign Arbitral Awards (New York Convention)

risk ratings  World Economic Forum Global competitiveness index (2019): 134/141 intellectual  A comprehensive list of IP-related treaties signed by Mauritania is  ease of doing business (2020): 152/190 property (“IP”) available at: http://www.wipo.int/wipolex/en/profile.jsp?code=MR  Corruption perception index (2019): 137/180 treaties  See the trade marks section below for further detail.

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doing business in Mauritania

legal regime months to one year imprisonment, and/or a fine ranging from MRO50 000 to MRO800 000,1 subject to a limit of 5% of the turnover achieved in applicable legal  Mauritania’s legal system is based on a combination of Sharia (Islamic Mauritania by the undertaking concerned during the last financial year. regime law), which governs personal law, most civil law, and some property issues, and French civil law, which governs some civil law and all employment commercial issues. requirements dispute  Disputes between the government and individuals or legal entities related immigration  The Investment Code permits companies to employ expatriates in key resolution to the Investment Code (Law 2012-052, amended by Law 2016-12) are positions up to 10% of the supervisory staff, in accordance with current settled by arbitration in terms of the Arbitration Code, as amended in 2019, labour laws. The recruitment of expatriates is subject to obtaining an the ICSID Convention and the New York Convention. Ad-hoc arbitration authorisation and a work permit from the competent administration, which courts be set up after rules laid down by UNCITRAL. would be issued in cases where equivalent national skills are not available  The government accepts binding international arbitration of investment for vacancies. disputes, and courts or traditional mediation mechanisms provide for the  Mauritania has two types of work permits, which can be renewed for a settlement of domestic disputes. maximum period of two years and one or more successive renewals is permitted: land  In terms of the Investment Code, the state may make concessions for the  Permit A: authorises its holder to hold a specific job in the service of acquisition, purchase of property by national and foreign investors for professional a specific employer for a maximum period of two years on condition planning and purposes, subject to the land provisions in force. that the job for which the permit is requested cannot be filled by a use  Investors must apply to the Ministry of Finance through the Land Registry Mauritanian worker. Agency (Direction Générale des Domaines et du Patrimoine de l’État).  Permit B: authorises its holder to take up paid employment in the service of any established employer, for a maximum period of four competition years. It is issued, on the basis of reciprocity, to any worker who is a merger control  To the best of our knowledge, merger control has been introduced in national of a state which has signed agreements, treaties or Mauritania but is not yet operational. conventions in the matter with Mauritania.  The implementing Decree meant to set the financial threshold has not been adopted yet, to the best of our knowledge. fixed-term  Fixed-term contracts are allowed in terms of the Labour Code, 2004 (as contracts amended in 2009). prohibited  The Mauritanian Code of Commerce, as amended by Law No. 2015-032,  The Labour Code provides that generally no contract can be concluded for practices prohibits – unless authorised by regulation – agreements between a fixed period exceeding two years including renewal. However, for foreign undertakings, decisions by associations of undertakings or concerted workers who do not have their usual residence in Mauritania, the duration practices which have the object or effect of preventing, restricting or cannot, except granted under conditions provided for by decree, exceed distorting competition on a particular market, in particular those which: 30 months for the first stay and 20 months for subsequent stays.  limit access to the market or the free exercise of competition by other companies; payment in local  Remuneration must be paid in local currency.  prevent the free setting of prices by free competition, by artificially currency encouraging the increase or reduction of prices or by preventing the reduction of cost price, selling prices or resale prices;  limit or control production, markets, investment or development; or  share markets or sources of supply.  The Mauritanian Code of Commerce prohibits abuses of dominance.  In terms of article 1237, any person who has taken a personal and crucial part in a cartel or abuse of a dominant position shall be subject to two

1 The former currency (MRO) and value, as indicated, has not been converted to the new currency (MRU) as the relevant legislation or legal document has not been formally amended and republished by the relevant authorities. In practice, transactions should be concluded with the new currency.

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doing business in Mauritania

foreign investment regime fishing, industrial and manufacturing units, renewable energy investment  The Investment Code governs foreign investment in Mauritania. production, hotel or tourism industries. regime  The Guichet Unique des Investissements (“Guichet Unique”) has been exchange  The Mauritanian currency is the Ouguiya (MRU), which replaced the old established as an administrative one-stop-shop to guide, inform and assist control Ouguiya (MRO) on 1 January 2018 at a rate of 10 to 1. investors. regulation  Mauritania does not impose any exchange control restrictions. registration /  Investors are required to file the single form (Formulaire Unique) with the  Offshore accounts must be declared to the Central Bank. licensing Guichet Unique. The form contains all the information required by the types of  Public company (or joint-stock company); requirements relevant agencies with which registration is required, including: entities  Limited liability company;  the Registry of Commerce; available for  Partnerships;  the Directorate General for Taxation (Direction Générale des Impôts, foreign  Joint venture company; and (“DGI”); and investment  Public-private ventures.  the Social Security Authority (Caisse Nationale de Securité, (“CNSS”)). private limited liability company minimum non-industry  A minimum of one shareholder is required and the maximum allowed is  The following general non-industry specific registration / licences may also number of specific 50. be required: shareholders registrations /  The Commercial Code requires more than half of the shares to be held by licences Mauritanian nationals. DGI  All taxpayers must register with the DGI, within 20 days of the company’s minimum share  The minimum statutory share capital for a private company is MRO1- constitution or commencement of activities in Mauritania. capital million, divided into equal shares of a value of at least MRO5 000.3  The DGI will issue a taxpayer identification number (un numéro d’identification fiscale). directors  A private company must have a minimum of one director.

CNSS  Every employer who employs one or more employees must register with company  A private company is not required to appoint a company secretary. the CNSS within eight days of commencement of operations. secretary auditor  A private company must appoint a statutory auditor who must be industry-  Industry-specific licences may also be required. previously registered on a list established for this purpose. specific licences registered  Every company must have a registered office in Mauritania to which all incentives  Incentives include: address communications and notices may be addressed and which must constitute  those under the Investment Code available to: the address for service of legal proceedings on the company.  small and medium-sized enterprises (SMEs) investing registration  Companies are registered with the Registry of Commerce and it takes between MRU5-milion and MRU20-milion; process approximately one week to complete registration once all the required  investors operating in qualifying economic zones, who invest documents have been submitted. more than MRU50-million, create at least 50 new permanent jobs in the export processing zone and allocate a minimum of 80% of their production to exportation; and  investors in areas other than the capital who invest at least MRO50-million,2 recruit at least 10 permanent employees in Mauritania and start a new industrial, agricultural or manufacturing activity in the agriculture, animal farming,

2 The former currency (MRO) and value, as indicated, has not been converted to the new currency (MRU) as the 3 The former currency (MRO) and value, as indicated, has not been converted to the new currency (MRU) as the relevant legislation or legal document has not been formally amended and republished by the relevant authorities. In relevant legislation or legal document has not been formally amended and republished by the relevant authorities. In practice, transactions should be concluded with the new currency. practice, transactions should be concluded with the new currency.

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tax transfer pricing  In terms of Mauritania’s transfer pricing rules, transactions entered into tax system  Mauritania has a source-based tax system, in terms of which both between related parties must be entered into on an arm’s length basis. residents and non-residents are subject to tax on income earned from a  Companies are deemed to be related when: source in Mauritania.  one holds directly or through an intermediary the majority of the capital of the other or in substance exercises decision-making corporate  A company is resident in Mauritania if it has its head office or place of power; or residence effective management in Mauritania.  they are both under the control of the same company or the same corporate tax  Companies with an annual turnover exceeding MRU5-million are subject person. rate to the normal real profit regime (régime du bénéfice réel normal, (“BRN”)), limitations on  There are no thin capitalisation rules applicable in Mauritania. Interest on whereas companies with an annual turnover of up to MRU5-million are interest shareholder loans are deductible where: subject to the intermediate real profit regime (régime du bénéfice réel deductibility  the interest rate charged does not exceed the normal rate charged by intermédiaire (“BRI”)). the Central Bank of Mauritania plus two percentage points; and  Resident companies and permanent establishments of foreign companies  the total amount of interest for the year does not exceed 25% of subject to the BRN regime are subject to corporate income tax at the rate EBITDA (15% of EBITDA if the company belongs to a group of of 25% or 2% on specified income. A minimum tax of MRU100 000 companies with annual turnover exceeding MRU10-billion in one of applies. the three preceding years), unless the company provides proof that the net interest expense ratio of the group to which it belongs is capital gains  Capital gains are included in ordinary taxable income and subject to greater than its own net expense ratio. tax (“CGT”) corporate income tax at the standard rate of 25%.  Capital gains arising from the disposal of business assets by resident employee taxes The income tax rates applicable to resident individuals are: companies are regarded as ordinary income and are subject to the tax on industrial, commercial, artisan and agricultural profits at the standard rate. monthly chargeable income (MRU) tax rate up to 9 000 15% withholding tax WHT rate (“WHT”) rates 9 001 – 21 000 25% payment to residents non-residents above 21 000 40% branch profits N/A 10% social security  Both employees and employers must make monthly social security dividends 10% 10% contributions contributions to the CNSS. interest 10% 10%  Contributions are calculated on total wages and salaries, capped at a royalties N/A N/A monthly remuneration ceiling of MRU7 000.  The employer contribution rates are: management, N/A 15%  social security: 13%; and consulting and  occupational medicine: 2% technical service fees  The employee contribution rate for social security is 1%. double tax  DTAs are in force with the (including Algeria, , agreements Morocco and Tunisia), France and . payroll taxes  A payroll tax applies to income from public and private salaries, wages, (“DTAs”) related allowances and 40% of benefits in kind when their value exceeds 20% of the beneficiary’s gross salary at the following rates: losses  Losses may be carried forward for a period of five years.  monthly taxable remuneration less than or equal to MRU9 000: 15%;  Deferred depreciation incurred in loss-making years may be carried  monthly taxable remuneration greater than MRU9 000 and less than forward indefinitely. or equal to MRU21 000: 25%; and  monthly taxable remuneration in excess of MRU21 000: 40%.  An apprenticeship tax (taxe d'apprentissage) is payable by any person subject to the BNR regime at a rate of 0.6% of the total amount of salaries, wages and any compensation or remuneration, including benefits in kind.

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doing business in Mauritania

stamp duty  A registration duty (droits d’enregistrement) is levied on official documents classification  The international classification of goods and services applies. A single at rates of between MRO200 and MRO30 000.4 application may cover any number of class, however, goods and services  A transfer duty at rates of between 1% and 3% is payable on the transfer may not be included in the same application. of shares, bonds and immovable property. categories of  Provision is made for: value added tax trade marks  collective marks; (“VAT”)  geographical indications; and taxable supplies  VAT is levied on the supply of goods and services in Mauritania and on  service marks. the importation of goods and services. filing  Certified copy of the priority document (if applicable); VAT rate  16% requirements  electronic copy of the trade mark;  20% (petroleum products)  full particulars of the applicant; and  18% (telecommunication services)  Power of attorney, in French or English, simply signed.

registration  Any person who independently carries on, on a regular or occasional procedure  An application is filed at the OAPI office in Mauritania. An application is threshold basis, taxable transactions falling within the scope of VAT and has an examined to determine if it complies with formal requirements and in annual business turnover exceeding MRU3-million, must register for VAT respect of prior conflicting trade marks. If accepted, the registration purposes. certificate will be issued and the trade mark registration published for opposition purposes. reverse VAT on  Services rendered by non-residents are not subject to VAT, provided that imported they are subject to withholding tax. oppositions  Opposition may be lodged within six months following the date of services  Non-residents engaged in business activities in Mauritania must appoint a advertisement of the registration. No extensions are allowed. representative domiciled in Mauritania who will be subject to the same tax duration and  A trade mark registration is effective for an initial period of 10 years and, obligations as taxpayers carrying on their activities in Mauritania. renewal thereafter, renewable for further periods of 10 years.  Where an agent fails to pay the VAT due, the tax and any relevant fines may be recovered from the local recipient of the goods and services.

trade marks

international  Madrid Protocol For more information or assistance please contact: conventions,  Nice Agreement treaties and  Paris Convention Celia Becker arrangements  Trade Mark Law Treaty Executive | Africa regulatory and business intelligence  World Intellectual Property Organization [email protected]  World Trade Organization cell: +27 82 886 8744

*Note This document contains general information and no information provided herein may in any way be construed as legal advice from ENSafrica, any of its personnel and/or its correspondent firms. Professional advice must be sought from ENSafrica before any action is taken based on the information Mauritania is a member of Organisation Africaine de la Propriété Intellectuelle provided herein. This document is the property of ENSafrica and consent must be obtained from (“OAPI”). An OAPI application automatically covers all member countries, as ENSafrica before the information provided herein is reproduced and/or distributed in any way. the member states had to renounce their national IP laws in order to become members. It is therefore not possible to file individual national applications in LAST UPDATED NOVEMBER 2020 any of the OAPI member states.

4 The former currency (MRO) and value, as indicated, has not been converted to the new currency (MRU) as the relevant legislation or legal document has not been formally amended and republished by the relevant authorities. In practice, transactions should be concluded with the new currency.

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