Individual - Foreign tax relief and tax treaties

Last reviewed - 11 March 2024

Foreign tax relief

Foreign taxes paid may be deducted as an expense from taxable income.

The specific process to enforce foreign tax credits either in Mauritania or abroad (depending on the payments directions) is stipulated within the specific DTT with the relevant country. Nonetheless, as far Mauritania is concerned, the practice consisting of enforcing foreign tax credits locally is very rare.

Tax treaties

Mauritania has entered into DTTs with France, Senegal, and states of the Arab Maghreb Union (Algeria, Libya, Morocco, and Tunisia).

The treaties generally provide the following relief:

  • The treaties with France and Senegal provide that royalties and remuneration paid to a non-resident for services rendered in Mauritania are taxable in the state of residence of the beneficiary of the sums paid.
  • Profits are taxable in the treaty country where a foreign firm performs its activities through a permanent establishment (PE).
  • Interest is taxable in the state of residence of the beneficiary, but the state of source may withhold tax if provided by its domestic law.
  • Employment income is taxed in the treaty country where the activity is performed, except in the case of a short assignment.