Tax Residency in Mauritania
1. Criteria for Determining Tax Residency
According to Article 1 of Mauritania's General Tax Code (GTC), an individual is considered a tax resident if they meet any of the following criteria:
- Physical presence in Mauritania for more than 183 days in a calendar year.
- Establishment of a habitual residence in Mauritania.
- Exercise of a professional activity in Mauritania.
For companies, tax residency is determined based on their registered office or place of effective management.
2. Impact of International Tax Treaties
Mauritania has entered into several double taxation agreements (DTAs) with other countries. These DTAs may modify or provide exceptions to the standard criteria for tax residency.
Key Provisions in DTAs
- Article 4 of the Mauritania-France DTA: Defines tax residency based on the individual's permanent home, center of vital interests, or habitual abode.
- Article 4 of the Mauritania-Morocco DTA: Considers an individual a resident of Mauritania if they have a permanent home or habitual abode in the country.
- Article 4 of the Mauritania-Senegal DTA: Establishes tax residency based on the individual's habitual residence or center of vital interests.
Rationale for Treaty Modifications
These treaty provisions aim to prevent double taxation and ensure that individuals are taxed only in the country where they have a substantial economic presence. They also provide clarity and certainty for taxpayers engaged in cross-border activities.
If navigating the complexities of Mauritania's tax residency rules seems daunting, consider seeking professional guidance. Heavnn's team of experts can help you optimize your tax planning and ensure compliance with both domestic and international tax laws.
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