Mauritania, as a member of the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS), has committed to implementing the minimum standards under Action 13, which includes the Country-by-Country Reporting (CbCR) framework. However, the development and enforcement of detailed local rules for CbCR remain in early stages.

This guide provides a summary of the current status of CbCR in Mauritania, along with practical considerations for MNEs with operations or subsidiaries in the country.

Legal and Regulatory Status

• Membership in the OECD Inclusive Framework: Yes
• CbCR Legislation Enacted: As of now, no comprehensive CbCR domestic legislation is publicly available.
• International Agreements:
  • Mauritania is a signatory to the Inclusive Framework but has not signed the OECD’s Multilateral Competent Authority Agreement (MCAA) on the exchange of CbC reports.
  • No confirmed participation in automatic exchange of CbC reports as of the latest OECD publication.

Filing Obligations for MNEs

• No specific CbCR filing or notification obligation has been officially published for resident entities in Mauritania.
• However, MNEs operating through entities in Mauritania may be subject to surrogate or secondary filing requirements in other jurisdictions if their UPE is located in Mauritania and Mauritania fails to meet CbCR standards.

Practical Recommendations

• MNEs with a Ultimate Parent Entity (UPE) in Mauritania should:
  • Monitor developments in local tax law to determine when CbCR requirements are introduced.
  • Prepare to comply with CbCR in other jurisdictions where constituent entities operate.
• Mauritanian subsidiaries of foreign MNEs should:
  • Confirm whether their group is subject to CbCR in another jurisdiction.
  • Provide appropriate information to their head office for inclusion in the group’s CbC report.

Penalties for Non-Compliance

• No formal penalties have yet been established for non-compliance with CbCR obligations, as no formal obligation exists.
• Nonetheless, failure to align with OECD standards may create reputational risks or lead to scrutiny under transfer pricing audits or information exchange agreements in other jurisdictions.

Key Considerations for MNEs

• Voluntary Alignment with OECD Standards: MNEs headquartered in Mauritania are encouraged to voluntarily adopt OECD-compliant CbCR practices to prepare for future legislative requirements and ensure smooth operations across jurisdictions.
• Transfer Pricing Context: While no detailed transfer pricing legislation is in place in Mauritania, general anti-avoidance and tax base erosion measures may apply under the country’s corporate tax regime.
• Audit Risk: In the absence of specific CbCR rules, multinational groups should be cautious of inconsistencies between local entity financials and group-level transfer pricing documentation.

Useful Resources

• Ministère des Finances de la Mauritanie:
  http://www.finances.gov.mr
• OECD CbCR Portal:
  https://www.oecd.org/tax/beps/country-by-country-reporting.htm