Corporate Income Tax System in Mauritania
Mauritania's corporate income tax system is designed to generate revenue for the government while fostering economic growth and investment. The tax system is governed by the General Tax Code (Code Général des Impôts), which outlines the calculation methods, applicable tax rates, definitions of taxable income, exemptions, and legal framework for corporate income taxation.
Calculation of Corporate Income Tax
The corporate income tax liability is calculated based on the net income of a company, which is determined by deducting allowable expenses from its gross income. The net income is then subject to the applicable tax rate to determine the tax liability.
Applicable Tax Rates
Mauritania has a flat corporate income tax rate of 25%. This rate applies to all companies, regardless of their size or industry.
Taxable Income
Taxable income for corporations in Mauritania includes all income derived from business activities, including:
- Profits from the sale of goods or services
- Interest income
- Dividend income
- Rental income
- Royalties
- Capital gains
Exemptions
Certain types of income are exempt from corporate income tax in Mauritania, including:
- Dividends received from other Mauritanian companies
- Interest income from government bonds
- Capital gains from the sale of fixed assets held for more than two years
Legal Framework
The legal framework for corporate income taxation in Mauritania is primarily governed by the General Tax Code (Code Général des Impôts). Specific articles relevant to corporate income tax include:
- Article 10: Defines the scope of corporate income tax
- Article 11: Specifies the applicable tax rate
- Article 12: Outlines the calculation of taxable income
- Article 13: Lists the exemptions from corporate income tax
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