Capital Gains Taxation in Mauritania
Definition of Capital Gains
In Mauritania, capital gains are defined as profits or gains derived from the disposal of capital assets. These assets include:
- Real estate properties
- Stocks and shares
- Bonds and other financial instruments
- Business assets
Calculation of Taxable Capital Gains
Taxable capital gains are calculated as the difference between the selling price of the asset and its acquisition cost. The formula is:
Capital Gain = Selling Price - Acquisition Cost - Expenses
Adjustments or deductions may be allowed in the calculation of the gain, such as expenses related to the sale (e.g., brokerage fees, legal fees) and improvements made to the asset during ownership.
Tax Rates
Capital gains in Mauritania are taxed at a flat rate of 20%. However, certain exemptions or preferential tax treatment may apply under specific provisions of the tax law.
Legal Framework
The taxation of capital gains in Mauritania is governed by the following legal provisions:
- Tax Code of Mauritania, Article 10: Defines capital gains and outlines the general tax treatment.
- Tax Code of Mauritania, Article 11: Specifies the calculation of taxable capital gains.
- Tax Code of Mauritania, Article 12: Outlines the tax rates applicable to capital gains.
Policy Objectives
The capital gains tax system in Mauritania aims to:
- Ensure that individuals and businesses contribute their fair share of tax on profits realized from investments and asset disposals.
- Promote investment and economic growth by providing incentives for capital formation.
- Generate revenue for the government to fund public services and infrastructure.
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