On 18 October 2026, the Government of Mauritania officially published the Draft Finance Law for Fiscal Year 2027 (Projet de Loi de Finances 2027) on the Ministry of Finance portal, initiating the legislative process for the next fiscal year’s tax and budget framework. The draft law, prepared under the authority of the Minister of Finance and aligned with the Public Finance Reform Master Plan 2025-2030 (Schéma Directeur de la Réforme des Finances Publiques), proposes a comprehensive set of amendments to the General Tax Code (Code Général des Impôts), the Customs Code, and sector-specific tax regimes. The proposed measures are scheduled to enter into force on 1 January 2027, subject to parliamentary debate, adoption by the National Assembly, and promulgation by the President of the Republic. The draft reflects the administration’s continued commitment to fiscal consolidation, revenue diversification, and the modernization of tax administration, consistent with the policy recommendations of the International Monetary Fund (IMF) under the current Extended Credit Facility arrangement.
Key Takeaways
- Broadening of the VAT Base and Rate Harmonization: The draft law proposes the extension of Value Added Tax (VAT) to a range of previously exempt services, including digital services supplied by non-resident providers, certain financial intermediation services, and professional consulting activities. Additionally, the standard VAT rate of 16% is maintained, but reduced rates on essential goods are rationalized to align with the West African Economic and Monetary Union (WAEMU) directives, aiming to reduce tax expenditure and improve neutrality. The measure includes a transition period for affected businesses to update their invoicing systems, with mandatory electronic invoicing (e-invoicing) for taxpayers exceeding an annual turnover threshold of 50 million MRU effective from the date of enactment.
- Targeted Corporate Tax Incentives for Strategic Sectors: To stimulate private investment in priority areas identified in the National Development Strategy, the draft introduces a new regime of tax credits and accelerated depreciation for capital expenditures in agriculture, fisheries, renewable energy, and digital infrastructure. Eligible investments will benefit from a 30% tax credit on qualifying equipment, claimable over three fiscal years, and an accelerated depreciation allowance of 40% in the first year. These incentives are conditional on the investor obtaining a certification from the Investment Promotion Agency (APIM) and maintaining the investment for a minimum of five years.
- Strengthening Tax Compliance and Digital Enforcement: The draft law significantly enhances the powers of the General Directorate of Taxes (DGI) to conduct remote audits and cross-check taxpayer data with customs and banking records. It mandates the generalization of electronic filing for all tax declarations and payments for medium and large enterprises, with a phased rollout for small taxpayers by 2028. Penalties for late filing, inaccurate returns, and failure to adopt certified e-invoicing solutions are increased substantially, including the introduction of a daily penalty for persistent non-compliance. The DGI is also authorized to publish a list of non-compliant taxpayers, reinforcing naming-and-shaming mechanisms.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement