Mauritania

Depreciation and amortisation

Depreciation must be calculated using the straight-line method on the basis of cost price. The normal period of use of the assets and the depreciation rates shall be definitively fixed at the time of acquisition of the assets in accordance with the following table:

Payments to directors

Directors' fees and other similar remuneration decided by the ordinary general meetings and received as a member of the board of directors or supervisory board of a company, except those paid by a Mauritanian public company, are not deducted from the CIT calculation.

Fines and penalties

The amounts of transactions, fines, confiscations, penalties, and surcharges of any kind imposed on offenders in contravention of tax, customs, and social legislation, price, circulation, or consumption regulations, and, in general, the laws and regulations of the state shall not be deducted from the profits subject to tax.

Taxes

Taxes payable by the company during the fiscal year, with the exception of CIT, are deductible.

If relief is subsequently granted on deductible taxes, the amount of such relief is included in the income for the financial year in which the company is notified of such relief.

Net operating losses

The deficit recognised in a fiscal year is considered as a charge against taxable income in the following fiscal year.

If there is no profit, or if there is insufficient profit to allow the deduction to be made in whole or in part, the deficit or the remaining deficit may be deducted from taxable profits of the following accounting periods until the fifth period following the period in which the deficit occurred.

Payments to foreign affiliates

Payments to foreign affiliates are subject to 15% WHT if they correspond to services provided. The management fees payments can be deducted up to a maximum of 2% of the turnover.