Mauritania

Mauritania is officially known as the Islamic Republic of Mauritania, and lies at the western tip of Africa, in the sub-Saharan Maghreb region.

Bordered by the Western Sahara, Algeria, Mali, and Senegal, Mauritania’s history stretches back to the 3rd century, and the civilisation known as the ‘Berber Kingdom of Mauretania’.

Mauritania was colonised by France in the late 19th and early 20th centuries, during which time its largely nomadic civilisations urbanised.

After becoming independent in 1960, Mauritania became a presidential republic but struggled with political and economic turmoil for years in the aftermath.

In recent years, Mauritania has taken steps to reform and modernise and, in 2014, was invited as a non-member guest to the G20 summit in Brisbane.

Almost three quarters of Mauritania is covered by desert, and the country experiences a climate ranging from hot, dry Saharan heat, to extreme cold, wind and rain.

General Information

• Full name: Islamic Republic of Mauritania
• Population: 4.736 million (World Bank, 2022)
• Capital: Nouakchott
• Major Languages: Arabic and French
• Major Religion: Islam
• Monetary Unit: Mauritanian Ouguiya (MRU)
• Main Exports: Iron, fish, oil, gold and copper
• GNI per Capita: $2,080 (World Bank, 2022)
• Internet domain: .mr
• International Dialling Code: +222

How Do I Say in Arabic?

• Hello: مرحبا
• Good morning: صباح الخير
• Good evening: مساء الخير
• Do you speak English?: هل تتحدث الإنجليزية؟
• Good bye: وداعا
• Thank you: شكرا لك
• See you later: أراك لاحقا

Dates

Dates are usually written in the day, month and year sequence. For example: 1st July, 2024 or 1/7/24.

Mauritania, a country with vast natural resources and strategic access to the Atlantic Ocean, offers unique opportunities for businesses looking to invest in West Africa. Despite being less explored by international investors, Mauritania's growing economy, rich in minerals and fisheries, presents a fertile ground for development and investment across various sectors. 

Mauritania’s strategic location along the West African coast provides direct access to international shipping routes, making it an attractive hub for trade and export. The country is endowed with significant natural resources, including iron ore, gold, copper, and vast fishing grounds, which are central to its economy and offer substantial investment opportunities. Additionally, Mauritania’s potential in renewable energy, particularly solar and wind power, is increasingly being recognised.

Mauritania's economy has traditionally been anchored in mining and fisheries, which continue to be the mainstay of its exports. However, recent discoveries of offshore gas fields, expected to come online in the coming years, are set to transform the country's economic landscape, opening up new avenues for investment in energy and related sectors. The government’s efforts to diversify the economy have also seen a focus on agriculture, livestock, and tourism, providing a wide array of opportunities for investment.

Doing business in Mauritania offers a unique opportunity to tap into a market with significant growth potential. The country's rich natural resources, strategic location, and the government's commitment to creating a favourable investment climate make it an attractive destination for businesses looking to expand in West Africa. By leveraging Mauritania's untapped potential and navigating its challenges with informed strategies, investors can unlock significant opportunities in this emerging market.

Mauritania, a country with a blend of vast natural resources and an evolving economic landscape, offers compelling reasons for investment, particularly for those looking to establish a foothold in West Africa. Its strategic location, untapped markets, and government incentives for foreign investment make Mauritania a noteworthy destination for businesses and investors aiming to diversify and tap into new growth avenues. 

Mauritania is rich in natural resources, with significant deposits of iron ore, gold, copper, and gypsum, among others. It is the continent’s second-largest exporter of iron ore, presenting vast opportunities in the mining sector. The recent discovery of significant offshore gas reserves has positioned Mauritania as an emerging player in the oil and gas industry, with production expected to boost the country's economy and offer new investment opportunities.

Mauritania’s rich marine resources and arable land offer untapped opportunities in fisheries, aquaculture, and agriculture. Investments aimed at enhancing value chains, processing facilities, and export capabilities can tap into growing domestic and international demand for food products.

The Mauritanian government is actively seeking to diversify its economy beyond mining and fisheries, focusing on sectors such as agriculture, renewable energy, tourism, and infrastructure development. This commitment is backed by policies aimed at improving the investment climate, including tax incentives, investment protection agreements, and efforts to streamline business registration processes.

Mauritania’s geographical position offers significant potential for solar and wind energy production. The government is keen on developing renewable energy sources to meet domestic needs and support sustainable growth, opening up opportunities for investment in green energy projects.

Infrastructure development is a priority for Mauritania, with investments aimed at improving road networks, port facilities, and energy infrastructure. These developments not only facilitate trade and logistics but also create opportunities for businesses involved in construction, transportation, and infrastructure services.

Foreign Direct Investment (FDI) in Mauritania is becoming an increasingly important pillar for the country's economic development, offering a pathway to harness its vast natural resources and strategic geographical advantages. As Mauritania seeks to diversify its economy and stimulate growth, FDI plays a crucial role in bringing in capital, technology, and expertise. 

The Mauritanian government is keen on attracting foreign investment and has implemented reforms to improve the business environment. These include simplifying the process of starting a business, improving the legal framework for investment, and offering tax incentives and exemptions to investors. Special Economic Zones (SEZs) offer additional incentives, including infrastructure support and simplified customs procedures, aimed at enhancing competitiveness and easing the way for foreign businesses.

Incentives for Foreign Investors in Mauritania

The Mauritanian government has implemented several measures to attract and retain FDI:

• Tax Benefits: Tax incentives, including reduced rates and exemptions, are available to foreign investors, particularly in priority sectors and SEZs.
• Customs Exemptions: Import duty exemptions for machinery, equipment, and raw materials for use in production processes.
• Land Access: Facilitated access to land for industrial and agricultural projects, with potential for long-term leases and concessions.
• Investment Protection: Mauritania has entered into bilateral investment treaties to protect foreign investments, ensuring fair treatment and protection against expropriation.
• Streamlined Procedures: Efforts to simplify business registration and licensing procedures to reduce the time and cost of starting and operating a business.

Key Sectors for FDI in Mauritania

• Mining and Minerals: Mauritania’s wealth in minerals, particularly iron ore, gold, and copper, makes the mining sector a primary target for FDI. The country is looking to expand exploration and enhance the value chain in mineral processing.
• Oil and Gas: The discovery of significant offshore gas reserves opens up new opportunities for FDI in exploration, extraction, and infrastructure development, with projects like the Grand Tortue Ahmeyim set to boost the sector.
• Renewable Energy: With abundant solar and wind resources, Mauritania offers investment opportunities in renewable energy projects, aiming to increase the share of renewables in its energy mix.
• Agriculture and Fisheries: Investments in agriculture and fisheries can leverage Mauritania’s arable land and extensive marine resources, focusing on sustainability and export-oriented production.
• Infrastructure: There's a growing demand for investment in infrastructure, including roads, ports, and telecommunications, to support economic diversification and connectivity.

It is not mandatory to make employee salary payments from an in-country bank account, however it is mandatory to make third party authority payments from an in-country bank account.

In terms of the different payment options to the employee and/or authorities, in Mauritania the employees can be paid in cash, by check or bank transfer, while for authorities the payment has to be completed by the 15th of the following month by certified cheque (ITS, CNSS, CNAM) or bank transfer.

The funds can be transferred from a client account to the employee’s bank account in the same day if the accounts are with the same bank or a minimum of 72 hours if they are with different banks (can take up to 10 days for the funds to clear).

For expatriate salaries, the Central Bank considers 60% of the salary as being a normal level of savings to be transferred to the home country. The unspent balance is not treated as such and may create issues.

 Dealing with international transfers in Mauritania is possible but not always easy.

In Mauritania a company must have a legal entity established or be represented by a legally registered third party in order to process payroll.

Any company operating in Mauritania for more than 6 months should register an entity.

In Mauritania, businesses looking to establish operations have several options regarding the type of legal entity they can set up. These are:

Sole Proprietorship (Entreprise Individuelle)

A sole proprietorship is the simplest form of business entity, owned and operated by a single individual. It's suitable for small-scale operations without a need for formal structures. The owner is personally liable for all the business's debts and obligations.

Partnership (Société en Nom Collectif)

Partnerships in Mauritania involve two or more individuals who agree to operate a business together. Partners share profits, losses, and management responsibilities. There are several types of partnerships, including general partnerships where partners have unlimited liability for the debts of the business.

Limited Liability Company (Société à Responsabilité Limitée, SARL)

An SARL is a popular choice for small to medium-sized businesses. It offers limited liability to its owners, meaning their personal assets are protected from business debts beyond their investment in the company. An SARL is relatively straightforward to establish and requires at least one director and one shareholder.

A SARL (Limited Liability Company) can be operational within 1 week to 10 days. In order to register standard Articles of Association must be established and be signed by someone with a power of attorney from the foreign company (if sole shareholder) or from the different partners in the case of multiple shareholders.

Joint Stock Company (Société Anonyme, SA)

An SA is suited for larger businesses, capable of raising capital by issuing shares to the public. This type of entity requires a minimum of three shareholders and is governed by a board of directors. Shareholders have limited liability, restricted to the amount they have invested in the company.

Branch Office

Foreign companies may opt to establish a branch office in Mauritania to carry out business activities. A branch office is not considered a separate legal entity from the parent company, meaning the parent company is fully liable for the actions and obligations of the branch.

For registering a Branch, it is necessary to have legalised and authenticated copies of the Articles of Association from the company, certified by the Embassies/Ministry of Foreign Affairs. Registering a branch usually is a longer process.

Representative Office

A representative office is established by a foreign company to conduct marketing and research activities in Mauritania. However, it is not allowed to engage in commercial or revenue-generating activities. It serves as a non-trading presence in the country for the parent company.

Free Zone Company

Mauritania offers special economic zones (SEZs) with various incentives for businesses, including tax benefits and customs duty exemptions. Companies set up in these zones are engaged in export-oriented activities and benefit from streamlined procedures.

Company registrations

All types of companies (SARL, SA, ETS) as well as Branches are required to register with the tax and social security authorities if they are looking to process payroll in this country.

It is estimated that once all registrations are in place, the actual payroll implementation process will take between three and five days.

If the business is already processing a payroll in-country using another provider, legally no other specific registrations and documents have to be completed to transfer the payroll to a new provider. However, in practice the following documents are needed:

•  Statement of the holidays acquired per employee to know what are the accumulated basis and the number of days as per the date of transfer;
• Statement of the accumulated salaries since the beginning of the year for the annual declaration of salaries;
• Statement of the accumulated payments to CNSS (Employees/Employer);
• Statement of the accumulated payments to CNAM, if any (Employees/Employer)
• CNSS numbers as employer;
• Statement of information on employees (internal numeration; CNSS number; name; salary structure)
• Any statement that will enable the collection of the information necessary to ensure the continuity of the payroll process and information for the client

In Mauritania, catering to the global workforce and business professionals, there are various visa categories which include specifically designed visas for those coming into the country for work-related purposes. 

Types of Business Visas and Work Permits in Mauritania

• Business Visas: Specifically designed for individuals who are planning to enter Mauritania for business-related activities such as meetings, conferences, or setting up business operations. This visa category facilitates short-term visits that are purely business-oriented.
• Work Visas: For foreign nationals who intend to take up employment in Mauritania, obtaining a work visa is essential. This category is suitable for those who have already secured employment in Mauritania and are relocating to start their position.
• Work Permits: Aside from the visa, foreign nationals intending to work in Mauritania for a duration exceeding 60 days are required to obtain a work permit. The validity length of the work permit typically aligns with the contract length but generally, the A license is considered valid for two years. This permit is vital for legal employment within the country.

The form for the visa is available online and the entry visas are issued for a maximum period of twelve months.

The following documents are required when applying for a visa in Mauritania:

• Valid passport
• Copies of the airplane ticket round trip
• A reason for the trip: invitation letter (government, businesses, associations.) that can be confirmed by a Mauritanian authority or in certain cases by official services from the country where the visa has been requested
• Means of subsistence: equivalent resources of a minimum of 1,500 dollars per month
• A recent photograph
• A pre-paid return envelope
• Stamp Rights: the amounts depends on the type and lengths of the required visa

If you have the intention to live or to remain in Mauritania for more than 12 months, a visa acceptance for a longer stay is necessary.

A one-month visa can also be obtained on arrival.

To request a work permit for an expat new start in Mauritania, the following is required:

• Three ID photos
• CV
• Signed contract
• Copy of passport
• Residence Permit

Officially, the Work Permit has to be issued before starting the work. Practically, expats will start working on a “Mission Letter” basis.

In Mauritania the Tax Year runs from 1st January to 31st December.

The key legislative authorities for tax and payroll purposes in Mauritania are the Tax Department, Ministry of Employment and Professional Training, Caisse National de Securite Sociale (CNSS) and Caisse Nationale d’Assurance Maladie (CNAM).

Income Tax in Mauritania 

ITS (Tax on Salaries) is based on the gross salary after the deduction of social security contributions, CNSS and CNAM.

Tax Rates in Mauritania 2024 

Other than the monthly income tax contribution, an apprenticeship tax of 0.6% of the annual payroll costs has to be paid annually.

The tax contributions must be made to the authorities by the 15th of the following month.

The typical penalty awarded for the late submission and payment of ITS is 10% of the amount due.

Calculation Example

The applicable currency for the example below is MRU

Income Tax on Salaries (ITS)

Employer Contributions

In Mauritania, both the employee and employer make monthly contributions to CNSS and CNAM.

CNSS (Caisse National de Securite Sociale): The employee contributes 1% of his monthly salary and the employer contributes 13% to Social and 2% to Medical. The maximum monthly earnings for contribution calculation purposes are 15,000 ouguiyas.

CNAM (Caisse Nationale d’Assurance Maladie): The employee will contribute 4% of the monthly salary and the employer will contribute 5%. The basis is the gross salary and employees are to be under open term contracts.

The social security payments must be made to the authorities:

• Quarterly - Before 15th of next month (for less than 20 employees)
• Monthly - Before 15th of next month (for more than 20 employees)

The typical penalty awarded for the late submission and payment of social security contributions is 10% of the amount due to CNSS.

Government Pension Scheme in Mauritania

Old-age pension qualifying conditions: Age 63 for both men and women (amended in 2021 from 60 to 63. For women it was changed from 55 to 60 in 2016) with 20 years of insurance and 60 months of contributions in the last 10 years (including those made under the previous non-public program). The pensionable age is reduced by 5 years if prematurely aged.

Retirement from gainful employment is necessary and the pension is payable abroad if there is a reciprocal agreement.

Monthly

Declaration – 3 sets:

1. ITS
2. CNSS (if more than 20 employees)
3. CNAM

The documents should be submitted to the Tax Department/CNSS/CNAM at the latest by 15th of next month.

Information required for completing the above mentioned forms: the employees names/salaries/date of start/end.

Quarterly

Declaration – CNSS (if less than 20 employees)

Annually

• Annual Salary Declaration
• Apprenticeship tax

The documents can be submitted by the payroll provider, however only after they’ve been signed and sealed by the client or by a representative with a relevant PoA.

New employees must be registered with the local authorities when the employment contract is signed and the employer must declare them to social security.

Registration is required for ITS and CNSS payments and is usually done within the first payment to be made on behalf of the new employee.

To set up a new employee the following are required:

• Two ID Photos
• A copy of ID Card (new ID card for Mauritanians)
• Birth Certificate
• Copy of first page of the CNSS book (if already registered)
• Criminal Record
• CV
• Copies of Diploma
• Copies of experience certificates
• Certificate stating the new employee is free from any employment contract with anyone and allowed to engage with the company
• Wedding certificates
• Copies of the family members ID cards / Birth certificates for minors

Expat new starts need a work permit to be issued before starting work.

Officially, the work permit has to be issued before starting work, however it’s common practice for an expat to start working on a “Mission Letter” basis.

There are no legislative specifications regarding the timescale for an employee’s final payment, however it is usually no later than the eighth of the following month, which is the limit date stated by the law for monthly salary payment.

Notifications must be made to the local authorities when there is a leaver: When a local employee leaves the company declarations must be made to CNSS & CNAM or for expat employees their work permit must be returned and declaration to CNSS & CNAM must be made.

Additionally, an annual declaration of leavers to Tax Department through the Annual Declaration of Salaries is mandatory.

It is not legally acceptable in Mauritania to provide employees with online payslips.

The payroll provider does not need any specific licensing to make the tax and/or social security filing on behalf of the client.

Reports

Payroll reports must be kept for at least 10 years.

Payslip Example in Mauritania (in Old Ouguiya – MRO)

Local language (French) example:

English language  example:

In Mauritania, there is a mixed legal system of Islamic and French civil law. There is also the Labour law and its related documents (Decrees) which is the central law for employment.

Holiday Accrual and Calculations in Mauritania

Mauritania has a clear and enabling legislation governing holiday accrual. Employees are entitled to 2.5 days of leave for each month of service after a qualifying employment period. This includes both Mauritania's public holidays and the employee’s annual leave.

In Mauritania, holiday pay is generally calculated based on an employee's average daily wage. This takes into account their monthly salary and the number of days worked.

The holiday payment entitlement in Mauritania is one-month average salary after 12 months of service.

Maternity Leave in Mauritania

Maternity leave in Mauritania is designed to provide protection and support to working women during the period around childbirth. 

To be eligible for maternity leave in Mauritania, a woman must be an employee who has been working for her employer for 54 days in the last 3 months and 12 months of insurance being paid. This condition ensures that only those with proven service records can claim this benefit.

In accordance with labor laws of Mauritania, the standard entitlement to maternity leave is 14 weeks (3 months 10 days). This duration includes 8 weeks of postnatal leave, implying that an employee can start her maternity leave up to 6 weeks before the expected date of childbirth.

The maternity benefit of 100% of earnings is payable for up to 14 weeks, including 8 weeks following the date of childbirth.

The maternity benefits in Mauritania are paid by the National Social Security Fund (CNSS). The mother is entitled to 100% of her average daily earnings for the duration of the leave provided that she stops working during this period

Paternity Leave in Mauritania 

There is no statutory paternity leave for fathers in Mauritania.

Sick Leave in Mauritania 

 The worker whose employment contract is suspended due to illness or accident receives a grant in the amount specified in the following conditions.

During the First Year of Service

• Full Pay for One Month: Initially, an employee is entitled to their full salary for up to one month if their work contract is suspended due to illness or an accident. It's important to note, this duration will not be shorter than the employee's notice period, ensuring a base level of financial stability during health-related absences.
• Half Salary for Three Months: Following the first month, the employee is eligible to receive half of their salary for three additional months. This stepped approach provides continued support as the employee recovers.

From the Second to the Fifth Year of Service

• Full Salary for Two Months: Employees with a tenure ranging from two to five years are eligible for two months of full salary, with the provision that this period should not fall below twice the length of their notice period. This enhanced support acknowledges their increased commitment to the company.

• Half Salary for Six Months: Beyond the initial two months, the support extends to half salary compensation for up to six months, offering substantial coverage to recover from longer-term health issues.

Over Five Years of Service

• Full Salary for Three Months: For employees whose tenure exceeds five years, the policy provides full salary benefits for three months. This duration, importantly, will not be shorter than twice their notice period, reflecting an increased level of support for long-standing team members.
• Half Salary for Six Months: After the full pay period, employees continue to receive half of their salary for an additional six months, ensuring prolonged assistance during extended periods of illness.

National Service in Mauritania 

 There is no mandatory national military service in Mauritania.

Mauritania's minimum wage rate is 30,000 Mauritanian ouguiya per month for all adult workers.

Mauritania observes a Sunday as the weekend and the working week is therefore Monday to Friday. Saturday is worked in some companies but not in government and banks.

The standard working hours for government departments are 8.00am to 5.00pm from Monday to Thursday and 8.00am to 12.00pm on Friday.

Private entities can structure their working hours differently and, to avoid working 9 hours a day from Monday to Thursday, they can work on Friday afternoon and on Saturdays.

There are multiple statutory holiday schedules within Mauritania. Below are the statutory national holidays in Mauritania for 2024.

There are no specific benefits offered locally.

13th and 14th Month Payments

With regards to the 13th and 14th month payments, there is no legal basis for these payments in Mauritania and consequently, it is the company who defines if, and when, these are paid.

For Mauritania in 2024, key regulation and legislation changes in personal income tax, social security, and employment law include:

Personal Income Tax Rates in Mauritania 

 There are progressive tax rates for employment income and pensions. The tax rates are 15% for income from 6,000 to 9,000 MRU, 25% for income between 9,000 and 21,000 MRU, and 40% for income exceeding 21,000 MRU.

Withholding Tax (WHT) on Remuneration in Mauritania 

A 2.5% withholding tax must be deducted by Mauritanian services debtors for remuneration paid to individuals resident in Mauritania. This is applicable when the service is provided by an individual liable for tax under the personal business income tax.

Withholding Tax (WHT) on services provided by non residents in Mauritania 

A 15% withholding tax must be deducted by Mauritanian services debtors for remuneration paid for services provided by a company or individual with no tax resident in Mauritania. This is applicable only on services when goods and services are invoiced separately.

These changes reflect the tax structure in Mauritania for the year 2024 and provide a framework for taxation of income and remuneration within the country.

Please note that this document gives general guidance only and should not be regarded as an authoritative or complete statement of the law, regulations or tax position in any country. You should always seek specific advice for each specific situation. This document should not be relied upon as professional advice and activpayroll accepts no liability for reliance on its contents.