MAURITANIAN TAX CODE

Code 1982 Revised in 1991

Updated in 2008

Revised by the Tax Department

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CONTENTS

CATEGORY I: TAXABLE BASE AND SETTLEMENT 16 PART I: GOVERNMENT TAXES 16 TITLE I: INCOME TAXES 16 CHAPTER I: TAXES ON PROFITS DERIVED FROM TRADING, CRAFT, INDUSTRIES AND FARMING 16 Section I: GENERAL PROVISIONS 16 I. Field of Application and Places of Taxation 16 II. Taxable Gains 16 III. Exemptions 17 IV. Taxation Schemes 17 V. Tax Assessment 17 Section II: ACTUAL PROFIT SYSTEM 17 I. Corporate liable to taxation 17 II. Taxation Period 18 III. Determination of the Taxable Profit 18 IV. Taxpayers Obligation 21 V. Tax Computation 23 VI. "IMF - Impôt Minimum Forfaitaire" – Minimum Inclusive Tax 23 Section II BIS: SIMPLIFIED ACTUAL PROFIT SYSTEM 24 I. Corporate liable to taxes 24 II. Taxation Period 24 III. Determination of the Taxable Profit 24 IV. Taxpayers Obligations 25 V. Tax Calculation 25 VI. "IMF - Impôt Minimum Forfaitaire" – Minimum Inclusive Tax 25 Section III: FLAT RATE SYSTEM 25 I. Corporate liable to taxes 25 II. Tax Contributions 25 III. Assessment and Payment of Tax Contributions 26 IV. Carriers 26 CHAPTER II: TAX ON NON-COMMERCIAL PROFITS 28 Section I: TAXABLE PROFITS 28 Section II: PERSON LIABLE TO TAX – PLACE OF TAXATION 28

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Section III: Determination of the Taxable Profit 28 Section IV: TAXPAYERS OBLIGATIONS 29 Section V: TAX CALCULATION 29 Section VI: "IMF" - MINIMUM INCLUSIVE TAX 29 CHAPTER III: PROVISIONS COMMON TO INCOME TAX GENERATED BY INDUSTRIAL, COMMERCIAL AND NON COMMERCIAL CORPORATE. 30 Section I: TAXATION OF TAXPAYERS RECEIVING INCOME FROM INDUSTRIAL, COMMERCIAL AND NON COMMERCIAL ACTIVITIES 30 Section II: DECLARATION OF COMMISSIONS FEES, COPYRIGHT, BROKERAGE FEES, PARTNER RETURNS AND SHARES OF EARNING 30 Section III: TRANSFER OF BUSINESS AND CLIENTELE - SUSPENSION OF OPERATIONS OR PROFESSION - DEATH OF THE TAXPAYER 31 Section IV: MONITORING 31 Section V: AUTOMATIC TAXATION 31 Section VI: PENALTIES 32 Section VII: TAXPAYERS OBLIGATIONS 32 CHAPTER IV: TAX ON PROPERTY INCOME 33 Section I: APPLICATION FIELD 33 Section II: TAXABLE INCOME 33 Section III: PERSON LIABLE TO TAX – PLACE OF TAXATION 33 Section IV: RATE - TAX CALCULATION AND PAYMENT - TAXPAYERS OBLIGATIONS 33 Section V: MONITORING OF DECLARATIONS – AUTOMATIC TAXATION 34 Section VI: PENALTIES 34 CHAPTER V: TAX ON TREATMENTS, WAGES, PENSIONS AND LIFE ANNUITIES 35 Section I: INCOME SUBJECT TO TAX Section II: TAXABLE PERSONS AND TAXABLE BASE 36 Section III: TAX CALCULATION 36 Section IV: TAX COLLECTION 36

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Section V: OBLIGATIONS OF EMPLOYERS AND LIFE-ANNUITY BENEFICIARIES 36 Section VI: PENALTIES 37 CHAPTER VI: TAX INCOME FROM PERSONAL PROPERTIES 38 Section I: GOODS DISTRIBUTED BY LEGAL ENTITIES SUBJECT TO TAXATION ON INDUSTRIAL AND COMMERCIAL PROFITS 38 Section II: INCOME FROM DEBTS, DEPOSITS, GARANTEES AND CURRENT ACCOUNTS 39 Section III: COMMON PROVISIONS 39 I. Rate and Taxable Base on Personal property 39 II. Tax Collection 39 III. Obligations of Taxpayers 40 IV. Penalties 40 CHAPTER VII: GENERAL INCOME TAX 41 Section I: GENERAL PROVISIONS 41 Section II: PLACE OF TAXATION 41 Section III: TAXABLE INCOME 42 Section IV: TAXABLE INCOME OF FOREIGNERS AND PERSONS NOT LIVING IN MAURITANIA 44 Section V: INCOME TAXATION ON THE YEAR OF PURCHASING A HOME OR A RESIDENCE IN MAURITANIA 45 Section VI: INCOME TAXATION ON THE YEAR OF TRANSFER OF RESIDENCE ABROAD OR ABANDONMENT OF ANY RESIDENCE IN MAURITANIA 45 Section VII: PROVISIONS APPLIED IN THE EVENT OF THE TAXPAYERS DEATH 45 Section VIII: HIDDEN REMUNERATIONS 45 Section IX: EMPLOYERS OBLIGATIONS 46 Section X: DECLARATION - MONITORING – AUTOMATIC TAXATION 46 Section XI: TAX CALCULATION 47 Section XII: PENALTIES 48 TITLE 2: VARIOUS TAXES 49 CHAPTER I: TAX ON MOTOR VEHICLES 49 I. Field of Application 49 II. Tax Rate 49

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III. Taxation Period - Payability 50 IV. Tax Payment 50 V. Specific Provision: Carriers 51 VI. Monitoring 51 VII. Penalties 51 CHAPTER II: APPRENTICESHIP TAX 52 I. Persons liable to tax 52 II. Taxable Base 52 III. Taxation Establishment 52 IV. Checking of Declarations - Rate and Tax Calculation 52 V. Complete or Partial Tax Exemptions 53 VI. Penalties 53 Annexe 52-10

CHAPTER II: Taxable Capital Turnover and General Provisions Section I: Imports Section II: Sales Fixed sum Section III. : Rendering of Services I: Field of Application II. Exemptions 55 III. Generating Fact 56 IV. Rate and Base 57 V. Fixed Sum 57 Section IV: COMMON PROVISIONS 57 I. Taxpayers Obligations 57 II. Taxpayers Subject to the Fixed Sum System 58 III. Penalties CHAPTER III. : CONSUMPTION TAXES Section I: Taxes on oil Products Section II: Tax on ALCOHOLIC BEVERAGES 59 Section III: TAX ON TOBACCO PRODUCTS 61 Section IV: TAX ON VARIOUS FOODS PRODUCTS 61 Section V: COMMON PROVISIONS 61 I. Taxable Operations 61 II. Taxpayers Obligations 62 III. Particular Provisions 62 IV. General Provisions 62

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CHAPTER V : OTHER INDIRECT TAXES 63 Section I: CIRCULATION TAX ON MEAT PRODUCTS 63 I. Taxable Products 63 II. Exemptions 63 III. Subject Liable to Tax 63 IV. Various Provisions 63 V. Taxpayers Obligations 64 VI. Temporary Provisions 64 Section II: SPECIAL TAX ON MOVIES PROJECTIONS 64 Section III: COMMON PROVISIONS 65 TITLE 4: REGISTRATION AND STAMP TAX 66 CHAPTER I: REGISTRATION DUTIES 66 Section I: GENERAL 66 I. Fixed and Proportional Duties 66 II. Dependent and Independent Provisions 66 III. Registration of Deeds, Copyright and Patents 67 IV. Minimum Levying 67 V. Payment Method of the Proportional Duty 67 Section II: DEADLINES FOR THE REGISTRATION OF DEEDS AND DECLARATIONS 67 I. Public and Private signed Deeds 67 II. Parties selling Goods 68 III. Other Deeds 68 IV. Oral Transfers 68 V. Declaration of Oral Transfer for leases on Buildings or Businesses 68 VI. Common Provisions Manque 69 69 Section IV: RATES AND APPLICATIONS 69 I. Fixed Duties 69 II. Proportional Duties 69 A. Shares and Interest Shares - Transfers 70 B. Leases 70 C. Swapping of Buildings 71 D. Transfer of Business 71 E. Court Decisions – Tax on Sentences 72 F. Markets 72 G. Inter Vivos Free Transfers 73 H. Sharing 73 I. Companies 73 J. Sales and Other Contracts Transferring Ownership of Fixed Assets via valuable Considerations 75

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Section V: OBLIGATIONS OF OFFICIALS, GOVERNMENT EMPLOYEES AND THIRD PARTIES75 I. Resulting Deeds 75 II. Public Deeds – Deposit Slip 76 III. Private Deeds 76 IV. Good faith Estimate Statements – Amounts of Duties to be paid to Treasury 76 V. Estate and Business Agents – Particular Obligations 76 VI. Directories of Notaries, Bailiffs and Registrars 77 Section VI: PENALTIES 78 I. General Provisions 78 II. Concealment 78 III. Deficiency 79 Section VII: SPECIAL TAX ON INSURANCE 79 I. Taxable Base 79 II. Rate 79 III. Exemptions 79 IV. Tax Waiving 80 V. Tax Settlement and Payment 80 VI. Joint Liability of Taxpayers 80 VII. Obligations of Insurers 80 VIII. Penalties 80 CHAPTER II: STAMP DUTY 81 Section I: GENERAL PROVISIONS 81 I. Collection Methods 81 II. Parties liable to the Duties 81 III. Various Prescriptions and Prohibitions 82 IV. Penalties 82 Section II: SIZE STAMPING 83 I. Deeds Subject to Size Stamping 83 II. Rates 83 Section III: CHEQUES AND WIRING ORDERS 84 Section IV: STAMPS FOR TRANSPORATATION CONTRACTS AND BILLS OF LADING 84 Section V: CRIMINAL RECORDS STAMPS 85 Section VI: STAMPS FOR SPECIAL DEEDS 85 I. General Provisions 85 II. Passports - Visas - Identity cards for non-résidents Aliens - Resident Card 85 A. Passports 85 B. Entry and Residence Visas 86 C. Identity cards for non-résidents Aliens 86 D. Resident Card 86 III. National Identity Card 86

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IV. Road Traffic Taxes 86 A. International certificates for automobiles - International Driver’s License 86 B. Car Inspections 87 C. Driver’s License 87 V. Hunting License 87 CHAPTER III: EXEMPTIONS AND SPECIAL REGIMES FOR MATTERS OF REGISTRATION AND STAMPING 88 1. Work site Accidents 88 2. Administration Acts 88 3. Legal Assistance 88 4. Associations 88 5. Defense Lawyers 88 6. Mauritanian Central Bank 89 7. National Development Fund 89 8. Central Economic Cooperation Fund 89 9. Savings Bank 89 10. Social Security Fund 89 11. Contributions and Taxes 89 12. Gifts between Spouses and Close Relatives 89 13. Bills of Exchanges 89 14. Registrar 89 15. Expropriation for Public Purposes 90 16. Business Pledge 90 17. Civil and Military Allowances 90 18. Family Allowances 90 19. Real Property and Mortgages 90 20. Trade Registry 90 21. Directories 91 22. Business Cooperatives 91 23. Companies Where the Investment is Partly Made of Public Funds 91 24. Benefit Societies 91 25. Workers Unions 91 26. Labor 91 CHAPTER IV: TAX ON REAL ESTATE ADVERTISING 92 Section I: TAX FALLING INTO THE GOVERNMENT’S BUDGET 92 Section II: REMUNERATIONS OF CURATORS AND CLERKS 93 I. Salaries of Curators 93 A. Proportional Salaries 93 B. Fixed Salaries 94 C. Salaries Resulting from Public Consultation of Property Books 94 D. Salary Deductions 94 II. Clerk Wages 95 Section III: COMMON PROVISIONS 95 I. Exemptions 95 II. Additional Provisions 95 PART II: TAX COLLECTED FOR THE BENEFIT OF TERRITORIAL COMMUNITIES 97

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SINGLE TITLE: ADMINISTRATIVE LOCAL TAXES 97 CHAPTER I: REAL ESTATE TAX ON BUILT ESTATES 97 Section I: TAXABLE PROPERTIES 97 Section II: EXEMPTIONS 97 Section III: TAXABLE BASE - DETERMINATION OF RENTAL VALUE 98 Section IV: TAX DEBTOR 98 Section V: TAX RATE 98 Section VI: PARTIAL TAX WAIVING 97 Section VII: PROPERTY TRANSFERS 97 CHAPTER II: PROPERTY TAX ON AGRICULTURAL LAND ASSIGNED TO MARKET GARDENING, CEREAL, FRUIT AND FLORAL CULTIVATIONS 100 CHAPTER III: RESIDENCE TAX 101 Section I: TAXABLE PREMISES 102 Section II: PERSONS LIABLE TO TAX 101 Section III: TAX RATES 102 Section IV: PLACES OF TAXATION 102 Section V: TAX SETTLEMENT 102 Section VI: PAYABILITY 102 Section VII: PAYMENT 102 CHAPTER IV: LOCAL TAX 103 CHAPTER V: LICENSE 104 Section I: PERSONS AND BUSINESSES LIABLE TO TAX 104 Section II: EXEMPTIONS 104 Section III: LICENSE RATES 104 Section IV: PLACES OF TAXATION - TERMS AND CONDITIONS OF TAXATION OF SECONDARY INSTITUTIONS 105 Section V: PERSONS WHO STARTS A BUSINESS OR ACTIVITY IN THE COURSE OF THE CURRENT YEAR 105 Section VI: SETTLEMENT OF TAXATIONS 105

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Section VII: CARRIERS 106 I/ Vehicles exclusively providing transportation within surrounding areas and suburbs other than NOUAKCHOTT and NOUADHIBOU 106 II/ Vehicles exclusively providing transportation within the followings cities; NOUAKCHOTT and NOUADHIBOU 106 III/ Vehicles providing interurban transportation 106 Section VIII: PROOF OF LICENSE PAYMENT (voir definition si justificatif) 107 CHAPTER VI: LICENSE DUTY (voir si droit est paiement ou right) 108 Section I: GENERAL PROVISIONS 108 Section II: RATES 108 CHAPTER VII: ADMINISTRATIVE LOCAL TAXES 109 Section I: FIELD OF APPLICATION 109 Section II: RATE 109 Section III: PLACES OF TAXATION 109 Section IV: TAX SETTLEMENT 109 Section V: TAX PAYMENT 110 Section VI: PROOF OF TAX PAYMENT 110 CHAPTER VIII: TAX ON LIVESTOCK 111 SECOND TITLE: COMMON PROVISIONS 112 CHAPTER I: ADJUSTMENTS AND AUDITING 112 Section I: ADJUSTMENTS 112 Section II: AUDIT OF THE TAXPAYERS 112 CHAPTER II: FISCAL AND CRIMINAL PENALTIES 114 Section I: FISCAL PENALTIES 114 Section II: CRIMINAL PENALTIES 114 CHAPTER III: TAX COLLECTION 116 Section I: DIRECTS TAX AND EQUIVALENT TAXES 116 I. Functions and Taxation Notices 116 II. Payability 117 III. Tax Payment 117

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IV. Third Parties Obligations 117 V. Particular Provisions 118 Section II: TAX ON TURNOVER, TAX ON CONSUMPTION AND OTHER INDIRECT TAXES 119 SPECIFIC PROVISIONS 120 Section III: REGISTRATION – REAL ESTATE ADVERTISING TAX AND STAMP 120 I. Payment of Duties Prior to Registration 120 II. Obligations of Agents 121 III. Obligations on Payment 121 IV. Contribution to Payment 122 CHAPTER IV: GUARANTEES AND PRIVILEGES 123 CHAPTER V: PROCEDURES 125 Section I: COMMON PROVISIONS APPLIED TO THE TAXATIONS WHICH COLLECTION RESTS WITH THE TREASURY’S ACCOUNTANTS 125 I. Prosecutions 125 II. Objections - Claims – Protective Measures 126 III. Prosecution Fees - Accountability 127 IV. Limitation of Administration Action Regarding Tax Collection 128

Section II: TAX ON TURNOVER, TAX ON CONSUMPTION AND OTHER INDIRECT TAXES - STATEMENT OF BREACHES 128 Section III: REGISTRATION AND STAMP 128 CHAPTER VI: LITIGATION COURT 129 Section I: FIELD OF THE LITIGATION COURT 129 Section II: CLAIMS 129 Section III: APPEAL TO THE COUNTY COURT 130 Section IV: PAYMENT PLAN 130 CHAPTER VII: EQUITABLE RELIEF COURT 131 Section I: FIELD OF THE EQUITABLE RELIEF COURT 131 Section II: REQUEST FOR DISCOUNT OR REDUCTION OF DIRECT TAXES 131 Section III: REQUEST FOR DISCOUNT OR REDUCTION OF PENALTIES 131 Section IV: IRRECOVERABLE QUOTAS 132 Section V: RULES OF QUALIFICATION 132

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CHAPTER VIII: LIMITATIONS 133 Section I: SPECIFIC PROVISIONS 133 I. Direct and Equivalent Taxes 133 II. Tax on Turnover - Tax on Consumptions and Other Indirect Taxes 133 III. Registration - Stamp and Real Estate Advertising 133 Section II: COMMON PROVISIONS 133 CHAPTER IX: COMMUNICATION DUTIES 135 Section I: COMMUNICATION DUTY TOWARDS THE PUBLIC INSTITUTIONS 135 Section II: COMMUNICATION DUTY TOWARDS TAXPAYERS - TIMELINE FOR PRESERVATION OF DOCUMENTS 135 CHAPTER X: BUSINESS CONFIDENTIALITY 137 Section I: DIRECT AND EQUIVALENT TAXES 137 Section II: REGISTRATION 137 Section III: COMMON PROVISIONS 137 TITLE 3: INDIRECT TAX 54 CHAPTER I: VALUE ADDED TAX- COMMON PROVISIONS Section I: Field of Application of the Tax 1. Taxable Operations 2. Definition of the liable parties 3. Exemptions Section II: Taxable Base Section III: Tax Event- Payability I.Tax point II.Payability Section IV. : RATE OF THE VALUE ADDED TAX Section V: Deduction System I. Principles II. Exclusion from the right to deduction III. Limitation of the right to deduction IV. Application Methods of the right to deduction

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Section VI: Specific Systems I. Oil Products II. Second-hand goods III. Travel agencies IV. Businesses benefiting from the provisions of the Investment Code Section VII: Taxation System Section VIII: Obligations of the liable parties I: Tax debtors II: Obligations III. Clearing-Recovery Section IX: Monitoring of the Declarations Section X: Penalties Section XI: Litigations and Prescriptions I: Litigation II: Prescription

Manque

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I. Order n°82.060 of May 24TH 1982 Regarding the General Tax Code The Military Committee of the “National Salut” has deliberated and passed; The President of The Military Committee of the “National Salut”, Head of State, promulgates the order with the following content : First Article : The provisions hereafter appended regarding the institution of a General Tax Code shall abrogate and replace those set out in Law n° 70.019 of January 16th 1970 and all other subsequent modifications as well as any additional legislative or statutory provisions opposed to it. Second Article: The present Order shall take effect from January 1st,, 1982. Third Article: The present Order shall be publicized in accordance with the Emergency procedures as well as executed as a State Law.

Made in Nouakchott May 24, 1982. For The Military Committee of the “National Salut”

The President: Lieutenant-Colonel Mohamed Khouna Ould Haidallah

II. Order n°2008-001 of January 2Oth 2008 Regarding the General Tax Code Article Sixteen : The Provisions related to the Real Estate Tax on Built Properties, Tax on agricultural land assigned to market gardening, cereal, fruit and floral as well as Local Tax, License Duty, Tax on Livestock shall, when the General Code of Taxation is next published be transferred as Levies and local Tax from Part I to Part II of Category I in the General Code of Taxation.

Made in Nouakchott February 6th, 1990. For The Military Committee of the “National Salut”

The President: Colonel Maaouya Ould Sid'Ahmed Taya

Manque

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FIRST BOOK

TAXABLE BASE AND SETTLEMENT

FIRST PART

GOVERNMENT TAXES

FIRST TITLE

INCOME TAXES

CHAPTER I

TAXES ON CORPORATE INCOME DERIVED FROM TRADING, CRAFT,

INDUSTRIES AND FARMING.

Section I

GENERAL PROVISIONS

I. Field of Application and Places of Taxation

ART 1. – An annual rate is established on the profits derived from the exercise of an industrial, commercial, crafting, or agricultural profession in Mauritania.

II. Taxable Gains ART 2. – Are liable to taxation: 1. The profits realized by individuals or legal entities who usually perform, on their own account and on a profit-seeking basis, industrial or commercial transactions such as: - Purchase of goods, materials or articles intended for resale as is or after processing

- Acquisitions of movables or real estate intended for leasing - Transportation of persons or goods - Exploitation of establishments intended to supply accommodation, housing, food, personal care or entertainment - Commission or brokerage operations - Bank operations - Insurance operations 2. Profits realized by: - Persons who rent out an industrial or

commercial establishment supplied with the furniture or equipment necessary to its operations, whether or not the rental includes all or part of the intangible components of the business

- Persons who rent furnished premises - Estate agents - Mining agents, exploitation mining

license holders, explorers and holders of exploitation licenses of oil and combustible gas fields

- Operators of quarries and sand pits.

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3. Profits realized by craftsmen and equivalent self-employed who carry out a manual trade and make profits out of their activity.derive their profit mainly from the wages of their own work. 4. Profits made from forestry activities, planters, farmers and cattle-breeders.

III. Exemptions

ART 3. – Are exempted from this duty all profits realized by approved cooperatives companies and organisations in accordance with the provisions of the Law Decree 67-171 of July, 18th 1967.

IV. Taxation Schemes ART 4. – Taxation on business income, craft industry and farming profits is set either according to the Actual Profit System or the Flat Rate Tax System.

V. Taxes Assessment ART 5. - The Tax is fixed in the name of each operator for the whole of his activities instead of the main establishment. Companies whose registered office is located overseas are taxed at the place of their main business in Mauritania according to the earnings of the operations they realized therein, or, for lack of establishment, in Nouakchott. ART 6. - In joint-stock companies, Limited

companies and General partnership counted as investment companies or carrying out industrial or commercial business operations, the tax are establish the name of the company.

- In General partnerships corporates, de

facto companies and joint ownerships, each of the partners or owners is individually liable to tax on the shares equivalent to his rights in the company or the joint ownership.

- In simple joint-stock companies, the tax

is fixed in the name of each of the partners on their respective profit shares and on the surplus in the name of the company. The duties hence included in the Tax Collection Forms in the name of the partners nonetheless remain social debts.

- In joint ventures, the tax is fixed in the name of each of the partners whose identities and shares in the division of participation profits had been informed to the Authorities. Otherwise, the tax is fixed in the name(s) of the manager(s) known to the Authorities.

Section II

ACTUAL PROFIT SYSTEM

I.Corporate liable to taxation ART 7. – The followings must be submitted to the Actual Profit System: 1. Public limited companies, limited partnerships limited by shares and limited liability companies, regardless of their purpose. 2. General partnerships, simple joint-stock companies and joint ventures whose purpose is industrial or commercial activities. 3. General partnership carrying on industrial or commercial operations. 4. Public institutions and government or local authorities’ bodies, on the condition that they are financially autonomous and carry on an industrial or commercial activity or profit-seeking operations. 5. Individual firms carrying on import-export operations, regardless of their annual turnover. 6. Individual firms whose main business is to sell goods, articles, supplies and food to be taken away or consumed on the spot, or to

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accommodation, whose annual turnover, all taxes included, is equal to or more than 6.000.000 UM. 7. Individual firms mainly providers of a service and whose annual turnover, all taxes included, is equal to or more than 3.000.000 UM. 8. Companies, individual firms approved as Customs Agents on Mauritanian soil, regardless of their annual turnover. 9. De facto companies, associations, joint ownerships, business cooperatives and their unions, along with any other legal entities. 10. Deals and business operations carried out on Occasional basis. 11. Travel agencies, and government contractors and suppliers of the Para public sector. ART 8. - Taxpayers who are not eligible to be taxed according to the Actual System can choose this Regime. They must notify their local tax inspector of their preference before February 1st of he current fiscal year. The option once selected is irrevocable.

II. Taxation Period

ART 9. - The tax is deducted each year from the profits of the legal year; in the case where the taxpayers’ accounting records are not consistent with the legal year, the tax is deducted from the profits achieved during the twelve month period whose results were used to determine the most recent balance sheet. If the fiscal year ended covers more or less than a twelve months, the tax is nevertheless fixed based on the results of the said fiscal period. New companies whose activities began in the course of the year can close their first balance sheet at the end of the following year. They are then bound to establish, on

December 31st of the year marking the beginning of their operations, a provisional operating account whose results shall instantly be taxed. This taxation shall be deducted from the one levied on the results of the first closed balance sheet. In the instance where consecutive balance sheets are established in the course of the same year, the results therefore are added up in order to establish the taxable base. III. Determination of the Taxable Profit ART 10. A. The taxable profit is the net profit calculated on the earnings of all operations of any nature carried out by the companies, including in particular the transfer of any element of the assets, either in the process of, or at the end of operations. B. The net profit is made of the difference between the values of the net worth at the closing and opening of the period whose results are to be used in determining the base of taxation, reduced of extra funds, and augmented of the deductions carried out during that period by the operator or partners. The net worth corresponds to the excess of asset values on the total made on the liabilities by third party claims, depreciations and reserves, all accounted for. Stocks must be estimated based on the cost price or the closing price of the year, if the said price is lesser than the cost price. The current works are assessed on their cost price. C. The net profit is determined on deduction of all charges, duly substantiated. Are considered professional charges those that were uncovered during the taxable period, in the interest of the enterprise and not in compensation for an asset value entry or extinction of debt in the liabilities. They mainly include:

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1. General Expenses of all nature. 2. Staff and workforce expenses, direct and indirect remunerations, including indemnities, allowances, fringe benefits and repayments of expenditures, only if that they correspond to actual labor and are not excessive with regards to the significance of the service rendered. 3. The leasing of properties rented by the company.

4. Tangible and intangible assets are subject to depreciations affected by the practice of the professional activity actually carried out by the company. The Depreciations of the tangible assets acquired within a period of 3 years is calculated as followed:

Fixed Assets

Period of Use Depreciation Rate

Settlement Costs Construction for Industrial use Commercial and Residential Building Transport Equipment Operating Equipment Tool Equipment Office Equipment Installations - Arrangements - Development Ships and Fishing Boats: * Second-hand * New Planes and Civil Aircrafts

2 years 20 years 25 years 4 years 5 years 5 years 10 years 10 years 6 years 8 years 20 years

50 % 5 % 4 % 25 % 20 % 20 % 10 % 10 % 16,66 % 12,50 % 5 %

Tangible and intangible assets are subject to depreciations affected by the practice of the professional activity actually carried out by the company. The Depreciations of the tangible assets acquired within a period of 3 years is calculated as followed:

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Fixed Assets

Duration Linear Rate

Coefficient/Ratio

Graded/Tapering Rate

Industrial Building 20 years 5% 2,5 12,5%

Industrial Rolling Stock 4 years 25% 1,5 37,5%

Operating Equipment 5 years 20% 2 40%

Computer Equipment 10 years 10% 2,5 25%

Boats and New Fishing Equipment

8 years 12,5% 2,5 31,25%

Planes and Civil Aircrafts 20 years 5% 2,5 12,5%

Are also considered as professional charges the depreciations that were deferred in the course of preceding deficit-years, on the condition that a special side note was added

off the balance sheet while submitting the statement specified by Article 14.

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5. The reserves estimated so as to face clearly specified losses and charges that current events make likely, provided they were actually recorded in the year’s entries and are present in the Statement of Reserves provided by Article 14. Standard and yearly operating costs, such as personnel costs, taxes, maintenance and repair costs, management operations sundries … cannot lead to the establishment of tax-deductible provisions. Reserves that are partially or entirely affected to a use not in accordance with their initial destination or that become without object in the course of a later year are transferred to the revenues of the said year. If the report is not produce by the company itself, the Administration has the authority to proceed to the required adjustments when it establishes that the reserves have no reason to exist. In that case and if relevant, those reserves are transferred to the results of the earliest year that had been verified. 6. The taxes charged to the company and actually paid during the year, with the exception of the Minimum Inclusive Tax and the Corporate Income Tax. If tax reductions are later on granted on deductible taxes, their sums are transferred into the returns of the year during which the company obtains the refund of the amounts wrongly received. However, the profits subject to taxation, as well as all transactions, fines, confiscations and penalties of any kind chargeable to the offenders of enforced legal provisions are not eligible for deduction. 7. The interests paid to shareholders in return for the deposits they made to the Social Fund, in addition to their capital share, and this regardless of the nature of the company, keeping to limit of those computed on the rates applied by the Mauritanian Bank with regards to loans, increases by two points.

8. Donations, subsidies and liberalities limited to 0,50 % of the taxable profit. ART 11. – As an exception to the provisions laid out in Article 10/Paragraph A, the capital gains proceeding from the transfer of elements of the capital assets in the course of the exploitation are not included in the taxable profit of the fiscal year during which they were realized if, in the statement of results of the said year, the operator commits himself to reinvest in the immobilizations of his companies in Mauritania, by an amount equal to the amount of these gains added to the cost price of transferred elements, and this before expiration of a three-year deadline beginning from the closing of the fiscal year. In execution of the above provisions, the values forming the portfolio are considered to be part of the capital assets if they were adjoined to the company’s patrimony at least five years prior to the date of transfer. Moreover, are assimilated to the capital assets, share acquisitions effecting in the operator’s guarantee of full ownership of at least 30% of a third party’s capital. If the re-use is carried out within the deadline mentioned above, the capital gains separated from the taxable profit are deducted from the cost price of new assets, either for the computation of depreciations if it concerns depreciable capital assets, or for the computation of capital gains realized at a later date. If not, they are reported to the taxable profit of the fiscal year during which the above deadline expired. However, in the case where the operator stop his profession or turns over his business in the course of the three-year period, the capital gains to be reinvested shall be immediately taxed as set by the terms of Article 44.

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ART 11.Bis. - As an exception to the provisions of article 10, income from the leasing of real estate property listed in the assets of the balance sheet and which are subject to tax on income from real estate property are not to be included in the taxable income. However any other expenses of any nature related to such real estate property are included in the taxable profits, except for the tax on services payable according to the provisions of article 202 of the C.G.I. [appears to be the abbreviation for the General Code of Taxation] ART 12. – Regarding the limited liability companies, remuneration allocated to the main share holders and managing partners included recorded against costs and expenses may be deducted from the gains of the company for the purpose of tax computation provided that such remuneration is for work actually carried out and is submitted to their name to the tax on industrial and commercial In the Application of the following provision, the managers who do not hold any shares are considered partners if their spouse or children under age have the ability to be partner In this case or if the manager is a shareholder the shares, the property or usufruct of the spouse or minor children of the manager are treated as his property. ART 13. – In the event of a loss, the excess deficit is considered as an expense and is eventually carried over to the following fiscal period where it will then be deducted from the profit of that same fiscal period. If the profit is not sufficient for the deduction, the loss will be successively carried over to the following fiscal periods up until the fifth fiscal period following the fiscal period of the loss.

IV. Taxpayers Obligations

ART 14. Taxpayers are ought to keep clear and understanding accounting records according to the Mauritanian general accounting plan. Regarding the imports a special accounting book must be provided for each operation, in addition to the value as defined in article 191, the number of declaration for consumption. Accounting documents and relevant papers, especially authorizations of transfers of funds, customs declarations, invoices of purchase and sale, pay-stubs receipt for expenses, must be kept for at least six years following the year of importation, purchase, sale or services rendered were recorded by accounting. - The taxpayers must file the detailled

Financial expenses statement using a standard format provided by the Tax Department., or a penalty of a non-deduction of 25% of the expenses not filed will be applied.

The following information and declaration must be provided to the Tax Department within the legal period set for the declaration of profits: Detailed and complete identification including number in the National Directory of Taxpayers of the company, the operating party and managers, partners or: - The terms of application and management

of the National Directory of Taxpayers shall be set by order of the finance minister.

- name, address and number in the National Directory of Taxpayers of the certified public accountant (CPA), of the accountant or the adviser who participated in the preparation of the accounting documentation and the tax filing.

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The individuals who simultaneously operate within different institutions, premises or offices must keep a different and distinct accounting record for each location. In addition to the declaration of consolidated profits for all establishments operating in Mauritania a declaration of the profit for each institution shall be attached as well. ART 15. - Businesses whose registered headquarter is located outside of Mauritania must keep a different and distinct accounting record for their activities in Mauritania. The concerned businesses must attach a declaration of the profits for each institutions. ART 16. – If the accounting records are kept in a language other than the official local language a certified translation should be provided to the tax department if requested.. ART 17. – Individuals and legal entities referred to in the article 7 must provide to the general director of the Tax Department a declaration of existence within twenty days of the beginning of their activities in Mauritania using a standard application format including : 1. The business purpose, the main activity, legal form, duration, the company location as well as the headquarters location. 2. The date of the charter, a copy of the charter on a non-stamped paper publicly certified attached to the declaration. 3. First, last name and address of the concerned managers, for legal entities of which the asset is not divided into shares and as well as the first, last name and address of the concerned partners. 4. The nature and value of all Real Estate and Personal properties evaluated for the capital contributions.

5. The quantity, the format and the amount : a) of negotiable securities issued , making the difference between shares and debentures and confirming for the first ones the sum paid out for each security and for the second the duration of the depreciation and the interest rate. b) capital shares not represented by negotiable security. c) Any other right granted to partners in the fair distributions of profits or assets of the company, whether or not such rights are recognised by a security. 6. For legal entities whose registered address is overseas, the declaration shall state in addition in detail the nature of their activities in Mauritania as well as the last name, first name, number in the National Directory of Taxpayers and address of their representative in Mauritania. ART 18. – In the event of any changes made to the name, juridical form, object, duration, registered address of the legal entity, its principal place of business, increase in, reduction or depreciation of the capital, partial or total paiement of company’s shares, any issuing, reimbursement or depreciation of loans represented by negotiable securities, replacement of one or several directors or managers, or for legal entities whose capital is not divided into shares, of one or more partners, the above legal entities must report the fact within a period of one month, and provide at the same time a duly certified copy on non-stamped paper of the concerned modification act. ART 19. - Legal entities with a registered office outside of Mauritania and carry out an activity there which renders them liable to income tax on industrial and commercial profits must indicate, in addition, in the statement issued pursuant to article 14, their principal place of business as well as

Revised 2007 23

the names, last names, number in the National Directory of Taxpayers and address of their representative in Mauritania. In the event of a replacement of such representative, or of change of address of the concerned company, the said legal entities shall report the matter in accordance with the conditions set out in article 18. ART 20. - Any breach of the provisions of articles 17 and 18 is liable to a fine of 10 000 UM. ART 21. - The inspector automaticaly establish the taxable base of taxpayers who have failed to make a statement within the given period set out in article 14. ART 22. - For the calculation of the taxable income for the industrial and commercial profit owed by businesses which are under the control of or have the control of businesses located outside of Mauritania, the profits indirectly transferred to the concerned party, either through the increase or decrease of purchase prices or sales prices, or by any other means, are included into the income shown in the accounting records. In the absence of detailed information to carry out the adjustments provided in the previous paragraph, the taxable income is determined by comparing them with similar businesses operating on the market.

V. Tax Calculation

ART 23. - The tax rate for industrial and commercial income is set at 25%. In order to calculate the tax rate, the net taxable income gain is rounded down to the nearest hundred ouiguiyas.

Taxpayers must determine and pay without notice, at the latest within 30 days of the date of expiration of filing of the statement of their profits required under article 14, the the amount of tax due based on their statement. The payment to the local official of the Treasury of which the taxpayer is accountable for is made by a statement on a standard printed format. Paragraph 4: abrogated (law 94.009 of 24 January 1994)

VI. Minimum Inclusive Tax ART 24. –the minimum inclusive tax is applied to individuals and legal entities under the regime of actual profit gains applied on industrial and commercial profits. This tax is due on a particular year at the rate of 3% of the turnover of the last ended fiscal period with a minimum payment of 240 000 UM. Individuals and Legal Entities starting a new business and seeking a grant of an import-export permit to participate in public business announcement or seeking a registration number must pay immediately in advance a deposit of 240 000 UM which constitutes the minimum tax payment ART 25. - Individuals or legal entities liable to the minimum inclusive income tax must calculate and pay without notice, by means of a standard prescribed form of statement provided to the local tax office of which they come under, two down payments, which shall be paid at the latest as follows: the first on 31 of March, the second on 30 of June. ART 25.Bis. - Individuals and legal entities liable to the minimum inclusive tax on estimated income who carry out the importation of goods of any nature must pay

Revised 2007 24

to the Customs Department down payment amounting to 3% of the customs value of the products and goods, plus all duties and taxes payable upon importation, except the value added tax or customs exemptions. The goods used for the purpose of the business activity cannot be used towards the 3% down payment mentioned in the previous statement above. Down payments made during a calendar year are deducted from the amount of the minimum inclusive tax on estimated income which must be paid before March 31st of the following year. When the down payment exceed the amount of the payable minimum inclusive, the excess payment noted is deducted from the contributions towards the tax on industrial and commercial profits. When such deduction cannot be made or is only partly made in part, the unused excess payment constitutes a tax credit deductible from the minimum inclusive tax or the contributions towards the tax on industrial and commercial profits of the following fiscal years. Receipts given at the time of payment of any part payments must be enclosed with the annual declaration of profits. Receipts received from any down payment must be enclosed with the annual declaration of profits. ART 25.Ter. - Individuals and legal entities liable to the minimum inclusive tax on estimated income who carry out the exportation activities must pay to the Customs Department down payment amounting to 3% of the customs value of the products and goods, plus all duties and taxes payable upon exportation, except the value added tax (lf-2008-001)

Down payments made during a calendar year are deducted from the amount of the minimum inclusive tax on estimated income which must be paid before March 31st of the following year. Receipts received from any down payment must be enclosed with the annual declaration of profits. ART 25.Quater. - As an exception to the provisions laid out in articles 24, 25 bis and 25 ter, the turnover from fishing products is not subject to the minimum inclusive tax on estimated income, except for the turnover coming from the production of pelagic fishing using charter liable to a 2% inclusive minimum tax. ART 26 (nouveau). - The amount of the minimum inclusive tax pursuant to article 24, except for the increase in duties provided for by article 478, come to be totaly deducted from contribution tax on industrial and commercial profits to the extent of one quarter of its amount, from the contribution payable on the account of the tax on commercial and industrial profits. The deductable part of the IMF exceeding the total of the taxable income on commercial and industrial profits will definatly remain for the Treasury Department. ART 27. - The provisions of this article are repealed (Law No 94.009 of January 24st, 1994 overhauling the changes made in the General Tax Code). ART 27.Bis. - Taxpayers who do not comply with their obligation towards the Customs Department to use on a long-term basis as a work tool on any imported goods are liable to a fine equaling to 80% of the amount of the down payment of which they wrongly exempted from.

Revised 2007 25

ART 27.Ter. - The down payments of the minimum inclusive income tax are recorded by the Customs Department on a specific registrar opened for that purpose on the same conditions as customs duties and taxes. The Customs Department provides to the Tax Department at the end of each month a summary statement per importer and per declaration, or alternatively if necessary, with a written agreement to assign the imported goods on a long-term basis to be used for production purposes. Such goods constitute, for the business, assets not intended to be re-sold.

Section II BIS.

SIMPLIFIED ACTUAL PROFIT SYSTEM

I. Corporate liable to taxes

ART 28. - The provisions of this article are repealed (Law No 94.010 of January 24st, 1994 amending the changes of the General Tax Code).

II. Taxation Period

ART 28.Bis. - The provisions of this article are repealed (Law No 94.010 of January 24st, 1994 amending the changes of the General Tax Code). III. Determination of the Taxable Profit ART 28.Ter. - The provisions of this article are repealed (Law No 94.010 of January 24st, 1994 amending the changes of the General Tax Code).

IV. Taxpayers Obligations ART 28.Quater. - The provisions of this article are repealed (Law No 94.010 of January 24st, 1994 amending the changes of the General Tax Code).

V. Tax Calculation ART 28.Quinquiès. - The provisions of this article are repealed (Law No 94.010 of January 24st, 1994 amending the changes of the General Tax Code).

VI. Minimum Inclusive Tax

ART 28.Sexiès. - The provisions of this article are repealed (Law No 94.010 of January 24st, 1994 amending the changes of the General Tax Code). ART 28.Septiès. – Individuals carring out the retail sale of petroleum products are liable to pay a minimum inclusive tax at the rate of 4% of the commission received, without there being a minimum amount payable. The above mentionned minimum inclusive tax, execpt for the increase in duties provided for in article 27, is deducted from the contribution payable on the account of the tax on commercial and industrial profits .Cet impôt minimum forfaitaire, à l'exclusion de la majoration de droits prévue à l'article 27, vient en déduction du montant de la cotisation due au titre de l'impôt sur les bénéfices industriels et commerciaux. If the concerned contribution is less than the amount of the minimum inclusive tax, the following remain the property of the treasury.

Section III

FLAT RATE SYSTEM

I. Corporate liable to taxes ART 29. - Subject to the provisions of articles 7 and 28, the flat rate system is applicable. 1. To sole proprietorship whose main activity is the retail of goods, objects, supplies or food products to be taken away or consumed on the spot, or to provide accommodation, whose annual turnover, inclusive of all taxes, is less than 6 000 000 UM. 2. To sole proprietorship who essentially provide services whose annual turnover, including all taxes, is less than 3 000 000 UM.

Revised 2007 26

II. Tax Contributions

ART 29 Bis. - The amount of the tax is fixed by estimate or by scale (forfaitairement) by the Tax Department in accordance with the following scales:

1. To sole proprietorship whose main activity is the retail of goods, objects, supplies or food products to be taken away or consumed on the spot, or to provide accommodation :

TURNOVER TAX Less Than 500.000 20.000 de 500.000 à 1.000.000 50.000 de 1.000.000 à 2.000.000 75.000 de 2.000.000 à 4.000.000 150.000 de 4.000.000 à 6.000.000 240.000 2. To sole proprietorship who essentially provide services : TURNOVER TAX Less Than 200.000 20.000 de 200.000 à 500.000 35.000 de 500.000 à 1.000.000 75.000 de 1.000.000 à 2.000.000 150.000 de 2.000.000 à 3.000.000 240.000 ART 29 Ter. 1. Taxpayers who sell in stands placed in streets and common area objects of small value, and hawkers, are liable for an annual tax of 4 000 UM in the areas of Nouakchott, Nouadhibou and Rosso, and 2 000 UM in other towns. 2. Taxpayers who run small grocery shops, retailing basic food product and small cleaning items, whose average daily taking cannot exceed 500 UM, are liable for an annual contribution of 8 000 UM in the areas of Nouakchott, Nouadhibou and Rosso and 4 000 UM in other towns. 3. The service providers and artisans who do not have the assistance of any family member and have not hire any apprentice, labourer or employee, and whose average daily taking cannot exceed 500 UM, are liable for an annual contribution of 6000 UM in the areas of Nouakchott, Nouadhibou and Rosso and 3000 UM in other areas.

III. Assessment and Payment of Tax

Contributions ART 29 Quater. - When a taxpayer operates simultaneously, in the same area or in different areas, several establishments, shops, stores, workshops, building sites and other places where an activity is carried out, each of them is considered to be a separate or distinct operation which is subject in all cases to separate taxation, so long as the total turnover realised does not exceed the limits set out in article 29. ART 30. - In case of disagreement on the tax amount imposed, the taxpayer may seek through judicial means, in the conditions and within the time period set out in articles 560 and 561, a reduction of his taxation He must provide for that matter all accounting records or other documents necessary to calculate the amount of turnover he has realised during the taxable period.

Revised 2007 27

ART 31. Taxpayers subject to the flat rate tax must comply with their obligations ome regime are under an obligation, whatever the amount of their turnover, to pay their tax contribution on industrial and commercial profit immediately at the time of the census. - Taxpayers who do not immediately pay,

upon delivery of the invoice the tax of which there are accountable for, may be prosecuted in accordance with article 527 and the following articles of this code.

IV. Carriers ART 31 Bis. –As an exception to the preceding provisions individuals or legal entities carrying out transportation by land of individuals, goods or rental cars activities, are subjected to annual flat rate on income tax, at a different rate for each of the vehicles they own, in accordance with the following scale: The years of the vehicle is counted from January 1st of the year of taxation.

Revised 2007 28

TYPE OF VEHICULE TAX PAYMENT

1/-Vehicles of any type, carrying less than 9 passengers providing inbound and outbound transportation: AGE : Less or equal to 5 years : between 5 and 10 years old: older than 10 years old: 2/- Vehicles of any type, carrying more than 9 passengers providing inbound and outbound transportation: AGE : Less or equal to 5 years : between 5 and 10 years old: inférieur ou older than 10 years old: 3/-Commercial vehicle with a loading capacity less or equal to 8 tons : AGE : Less or equal to 5 years : between 5 and 10 years old: older than 10 years old: 4/- Commercial vehicle with a loading capacity between 8 and 12 tons AGE : Less or equal to 5 years : between 5 and 10 years old: older than 10 years old: 5/- Commercial vehicle with a loading capacity exceeding twelve tons. AGE : Less or equal to 5 years : between 5 and 10 years old: older than 10 years old:

12.000 UM 9.000 UM 6.000 UM

20.000 UM 15.000 UM 10.000 UM

35.000 UM 25.000 UM 15.000 UM

45.000 UM 35.000 UM 20.000 UM

75.000 UM 50.000 UM 30.000 UM

Commercial vehicle with a loading capacity exceeding two tons, reguardless of the activity carried out by the registration cardholder, is liable to tax under the same conditions as the vehicles belonging to individuals and legal entities carrying out transporation by land of goods. ART 31.Ter. – the payment of the annual flat rate income tax pursuant article 31 of

the General Tax Code must occur before February 1st of each year using a payment title provided by the Tax Department. by means of an immediate payment title provided by the Tax Department.

Revised 2007 29

CHAPTER II

TAX ON NON-COMMERCIAL PROFITS

Section I

TAXABLE PROFITS ART 32. - An annual tax is established on profits made from any non commercial profession or activity in Mauritania.

Section II

INDIVIDUALS LIABLE TO TAX–PLACES OF TAXATION

ART 33. - The tax is imposed in the name of the beneficiaries of the taxable income in the work place or if need to be of the principal establishment

Section III

DETERMINATION OF THE TAXABLE PROFIT

ART 34. - The tax is calculated each year on the profits made the previous year. The tax base is made up from the excess of gross income over the expenses made necessary by the exercise of the business or activity. The tax base is made up of the excess of gross receipts over the expenses made necessary by the exercise of the profession or activity. It takes into account gains or losses made from the realisation of assets and sums or compensation received in exchange of the cease of the business, occupation, activity or the cease of goodwill or customers Deductible expenses also include : 1. The rent of professional premises; if the taxpayer is the owner of the premises used for the exercise of his profession or activity, no deduction can be made 2. The depreciation made according to the applicable rules related to the tax on industrial and commercial profits;

3. Staff and labor expenses in the conditions set out in paragraph C-2 of article 10. 4. As a general rule, duly justified expenses and charges of any nature made necessary by the exercise of the profession or activity; however, the tax on non commercial profit cannot be deducted from the taxable income. ART 35. - In the event of a loss recorded during a year, the loss is deductible on the profit made the following year. If the profit the following year is not sufficient to allow the deduction to be made in whole, the excess loss is successively brought forward to the following years, up until the third year following the year of the loss.

Section IV

TAXPAYERS OBLIGATIONS ART 36. - Any individual liable to the tax on non-commercial profits must comply to the following: - to provide to the General director of

Taxation within twenty days of the beginning of their activities in Mauritania a declaration of existence to be made on a standard printed form as a proof of their registration;

- to provide for the first three months of each year his income on a standard printed form.

- Such declaration shall be delivered to the Tax Inspector appointed in the the place of exercise of the profession or of the principal place of business.

In addition to the declaration a statement by the client of declared revenue shall be enclosed subject to the provisions of the last paragraph of article 37.

Revised 2007 30

ART 37. - Taxpayers subjected to the tax on non commercial profits must keep and present before March 31st to the Tax Department the accounting records which enable the exact calculation of the profits or loss made during the previous year. They are also under an obligation to keep a logbook, assessed and initialled [by the General Director of Taxation. Such document must state on a daily basis without blanks or erasures, the detail of revenues. Statements of accounts for the total operations are made at the end of each month. For the carrier field subjected to confidentiality rules, the logbook only shows under the date the detail of the amounts received. ART 38. - Taxpayers concerned by this chapter shall provide to their customers a numbered receipt taken from a counterfoil book. The receipt and the corresponding counterfoil must specifically state: - First names, last names, profession and

Number of National Taxpayers Directory of the individual issuing them;

- The date and amount of revenue received;

- First names and last names of the client subjected to the provisions of the last paragraph of article 37.

Section V

TAX CALCULATION

ART 39. - The tax rate on non-commercial profits is set at 35%. For the calculation of the tax, the tax base is rounded down to the nearest hundred ouguiyas.

Section VI

Minimum Inclusive Tax

ART 40. - Taxpayers subjected to the income tax on non-commercial activities are liable to a minimum inclusive tax set at the rate of 3% of the total income perceived during the last fiscal period with a minimum of 120 000 ouguiyas gross income. The paiments option and deductions for the minimum inclusive tax are similar to those established on articles 25 and 26. The government, the public institutions, economically mixed company, private companies subjected to the actual profit system shall retain a 4% rate on any commissions, brokerage, rebate, vacancy, fees occasionally or not, bonuses and other wages and shall make payment at the latest every 15th of the month when their receive their headquarters fund from the Treasury.

Revised 2007 31

CHAPTER III

PROVISIONS COMMON TO INCOME TAX GENERATED BY INDUSTRIAL, COMMERCIAL AND NON-COMMERCIAL PROFITS

Section I

TAXATION OF TAXPAYERS WHOSE INCOME DERIVED FROM INDUSTRIAL, COMMERCIAL AND NON COMMERCIAL

ACTIVITIES

ART 41. - When a taxpayer is liable to the tax on industrial and commercial profits extends his activity to operations subjected to the tax on non commercial profits, the revenue from such operations is calculated in accordance with the rules applicable to the tax on industrial and commercial profits and must be taken into consideration in the said taxbase.

Section II

DECLARATION OF COMMISSIONS FEES, COPYRIGHT, BROKERAGE FEES, PARTNER RETURNS AND EARNING

SHARES. ART 42. – Individuals or legal entities who, in the course of their work activity pay to third parties other than their employees, any commissions, brokerage fees, rebates, fees, vacancies, whether occasional or not, bonuses and other remunerations, must declare such sums, whatever the amount is, during the month of January of each year to the Tax Department. The duplicated declarations must show for each of the persons paid during the previous year the following information: -First name, Last names or legal status, company name and Number in the National Directory of Taxpayers. Businesses, companies or associations that carry out the receipt and payment of copyrights and license duties must declare

in the same conditions the sums they pay to their members or to their principals. Omissions or unconformities found in the declaration give rise to a fiscal fine of 10 000 UM per oversight or error. The late submission of the declaration is punishable: - with a fiscal fine of 10 000 UM, if the

delay does not exceed two months. - with a non deductibility of the amounts

paid if the delay exceeds two months. ART 43. - Companies and associations participating or concerned must provide to the Tax officer at the same time with the annual declaration pursuant articles 14 et 36 the following informations : The first name, last names, Number in the National Directory of Taxpayers, profession and address of partners, managing partners, and co-participants as well as the amount of shares that they hold: The conditions on which their gains are shared or have been distributed as remuneration for their duties or their capital contributions between the partners, managing partners, co-participants or members of the board of directors

Revised 2007 32

Section III

TRANSFER OF BUSINESS AND GOODWILL - SUSPENSION OF

OPERATIONS OR PROFESSION - DEATH OF THE TAXPAYER

ART 44. - 1. In thé event of transfer in whole or in part of a business or a goodwill, or the ceasion of operations or a profession, the income taxable base not yet taxed is automaticaly established. 2. Taxpayers must within a period of thirty days inform the Tax Officer of the transfer or of the ceasion and inform him of the date it became or will become effective, as well as, if applicable, of the first names, last names, number on the National Directory of Taxpayers and address of the transferee. 3. The assessment established in the conditions set out in paragraph 1 above is immediately due and payable in full. ART 45. - In the event of the death of the taxpayer, the information necessary to established the tax must be produced by the beneficiaries of the deceased within six months from the date of death.

Section IV

MONITORING ART 46. - The declaring party must present at the request of the agent in charge of the taxable base calculation, all accounting documents, inventories, copies of letters, receipt and expense documents, of any nature in order to justify the results indicated in his declaration. When the taxpayer has refused to reply to a verbal request or when the response to the request is considered by the Tax Officer to be equivalent to a refusal to reply with respect to all or some of the points to be clarified, the Inspector shall renew his request in writing.

All written requests shall indicate specifically the points on which the Tax Department thinks it necessary to obtain clarification or justifications and shall grant to the taxpayer a period of 8 days to provide his response. ART 47. - The Administration may amend the declarations in compliance with the procedure set out in article 474. The declared profits may be rectified automatically in the event of the following cases: 1. In the event of failure to show the accounts or the special imports accounting logbook; 2. When serious and repeated errors, omissions or inaccuracies are found in the accounts of the operations conducted 3. When the lack of supporting documents deprives the accounts of any conclusive value.

Section V

AUTOMATIC TAXATION ART 48. - The followings are automatically taxed : 1. Any taxpayer who has not submitted

within the prescribed periods the declarations required by articles 14, 25, and 36

2. Any taxpayer who has not complied with the period set out in paragraph 2 of article 44.

3. Any taxpayer who cannot provide in support of his declaration or cannot produce at the request of the Tax Department the documents with the content or result mandatory in articles 14 and 37 or who presents documents which do not enable the exact calculation of the profits for the the taxable period.

Revised 2007 33

4. Any taxpayer who has kept themselves

from responding to the requests of the Tax Officer for justifications or clarifications.

ART 49. - The taxpayer who is taxed automatically or is the subject of an automatic amendment procedures does not have judicial recourse to obtain the cancellation or reduction of the tax imposed upon him except if he has proof of being overcharged

Section VI

PENALTIES

ART 50. - 1. The failure to accounting records documents gives rise to a fiscal fine of 120 000 UM per document. The failure to provide accounting records within the prescribed periods gives rise to a fiscal fine of 20 000 UM per missing document. 3. The omissions or inaccuracies found, either in documents which are required to be filed up, or in written information supplied in support of the declaration, give rise to a fiscal fine of 10 000 UM per omission or inaccuracy. ART 51. - The provisions of this article are repealed are replaced by the provisions in article 478 Law n° 2000 – of January 10th, 2000 pursuant law of finances for 2000)

Section VII

TAXPAYERS OBLIGATIONS ART 51 Bis. - Purchases and services carried out with suppliers settled in Mauritania are not deductible from the base

of the Industrial and Commercial Profits and the Taxes on the Turnover only if the concerned suppliers are identified or registered in the National Directory or Taxpayers.

Revised 2007 34

CHAPTER IV

TAX ON PROPERTY INCOME

Section I

APPLICATION FIELD ART 52. - – An annual tax is imposed on income from real estate property. The following are included in the category of income from real estate property, when they are not included in the profit made by an industrial, commercial or craft business: - income from built properties, such as,

houses, factories, shops or offices; - income from any real estate property

not yet built.

Section II

TAXABLE INCOME ART 53. - Tax is established each year on the income from real estate property of the previous year. The taxable income is constituted by the total amount of rent, whether or not they were received. However, taxpayers whose annual rental income, exclusive of any other income, is equal to or less than 60 000 UM, shall be exempt from the tax

Section III

INDIVIDUALS LIABLE TO TAX – PLACES OF TAXATION

ART 54. - The tax is imposed to the name of the beneficiary of the taxable income. If the taxpayer has only one dwelling place in Mauritania, tax is incurred in that place. If the taxpayer has several dwelling places, he is liable to tax using his known official

dwelling place. This last one may be chosen automatically by the Administration in the event of the failure by the taxpayer.

Section IV

RATE - TAX CALCULATION AND PAYMENT - TAXPAYERS OBLIGATIONS

ART 55. - The Tax rate on real estate property is set at 6%. For the calculation of the tax, the taxable income determined in the conditions set out in article 53 is rounded down to the nearest hundred ouguiyas. Parties liable for tax on income from real estate must calculate the payable tax and pay it to the Treasury, without prior notice, before February 1st of each year. A certificate of payment delivered by the Treasury shall be enclosed with the declaration required under article 56. ART 56. - All taxpayer liable to the tax on income from real estate must submit before March 1st of each year a declaration of all the collected rents during the course of the previous year, mentionning : - his first name, last names, usual address

and Number in the National Directory of Taxpayers.

- the detailed location of the rented buildings: town, number of housing lot and block, name of street if applicable;

- the tenants fisrt name, last names and occupation.

- The amount of collected rents .

Revised 2007 35

Such declaration made on a special printed form supplied by the Tax Department, shall be dated, signed and provided to the Tax Officer of the official dwelling place of the taxpayer.

Section V

MONITORING OF DECLARATIONS – AUTOMATIC TAXATION

ART 57. - The Tax Inspector checks the declarations. He may request from the taxpayer any justifications or clarifications, verbally or in writing. When the taxpayer has refused to reply to a verbal request or when the response to the request is considered by the Tax Officer to be equivalent to a refusal to reply with respect to all or some of the points to be clarified, the Inspector shall renew his request in writing. All written requests shall indicate specifically the points on which the Tax Department thinks it necessary to obtain clarification or justifications and shall grant to the taxpayer a period of 8 days to provide his response. ART 58. - The Inspector is able if necessary to rectify the declarations in compliance with the procedure set out in article 474. ART 59. - Are automatically taxed: 1. Taxpayer who has not submitted a declaration of his real estate property income in accordance with article 56 2. Any taxpayer who has failed to reply to the requests of the Inspector for justifications or clarification.

ART 60. – In the event of a automaEn cas de tic taxation, the taxable base is determine by annual rental value of rented building according to article 430 The taxpayer who is automatically taxed does not have legal option to obtain a discount of the tax imposed upon him except if he has proof of being overcharged.

Section VI

PENALTIES ART 61. - . The provisions of this article are repealed are replaced by the provisions in article 478 Law n° 2000 – of January 10th, 2000 pursuant law of finances for 2000)

Revised 2007 36

CHAPTER V

TAX ON PAYROLL, WAGES, PENSIONS AND LIFE ANNUITIES

Section I

INCOME SUBJECT TO TAX ART 62. - 1 An amount of ten thousands ouguiya per month of remunaration. 2. The same tax is applicable to public or private pensions and to life annuity a) when the beneficiary dwelling place is in

Mauritania b) when the beneficiary dwelling place is

located outside of Mauritania and only if the detor is in Mauritania.

Regarding public pensions, the debtor is the assigned accountant ART 63. - 1. For the application of the provisions of paragraph 1 of article 62, the following are exempt from the tax: a) allowances for government expenses

and for the use of selected locations b) within the cumulated limit of 10 000

UM per month, allowances other than rent assistance, transport, accountability and occupation.

c) An amount of twenty one thousands (30 000) ouguiya per month for remunaration. (LF/2008 -001)

Allowances likely to be exempt are allowances for professional expenses not considered as bonus on salary. 2. For the application of paragraph 2 of article 62, the followings are exempt from the tax: a) war injured pensions b) Pensions allowed to war injured and

their legal beneficiaries c) Income from a life annuity granted to

injured victims on a work place d) Veteran’s retirement.

3. Family allowances or assistance, increases in minimum wages, allowances or pensions granted after consideration of the family income status or family expenses, are in all cases exempt from the tax. 4. Benefits in all kind valued at their actual value which do not exceed 20% of the remuneration received are exempt from the tax. If they exceed 20%, they are reserved for the taxable base up to 40% of their total amount. Wages received is considered as gross income without any type of benefits. In accordance with the provisions of article 62 and the following articles, it corresponds to the gross income plus all premiums, allowances and bonuses, or other extra elements of any nature, considered as extra salary.

Section II

TAXABLE INDIVIDUALS AND TAXABLE BASE

ART 64. - The tax is payable by the beneficiaries of the taxable income received ART 65. - The taxable income is determined by deducting from the total income received, increased by any benefits in kind estimated at their actual value: 1. compulsory deductions made towards the pensions, retirement payments and social security contributions; 2. amounts exempt from the tax pursuant to the provisions of article 63. However, shall be included in the taxable base the portion of salary that certain expatriates foreign nationals receive directly in their country of origin on the basis of their activity in Mauritania.

Revised 2007 37

Section III

TAX COMPUTATION

ART 66. - 1. The tax rates applicable to taxable income as defined in article 65 are fixed as follows: Monthly taxable income less than or equal to 40.000 UM : 15% Monthly taxable income exceeding 40.000UM : 30%. The amount of the simple dutie is calculated by using one of the following formulas according to the taxable income. - Monthly taxable income less than or

equal to 40.000 UM : I= (R.I x o, 15) - Monthly taxable income exceeding

40.000 UM : I= {(R.I. x 0.30) -6.000.} (LF/2008 -001)

2. For the calculation of the tax, the taxable base is rounded down to the nearest hundred ouguiyas. 3. Wages adjustement must be included in the income of the monthly period which it relates to. 4. . Public or private pensions and income from life annuity of which the payment is not made on a monthly basis , for the application of the rates referred to in paragraph 1 above, brought back to the month. 5. The payment of wages, salaries, pensions and income from life annuity represente source of taxation.

Section IV

TAX COLLECTION ART 67. - Tax is collected by means of withholding in favour of the Treasury by the employer or the taxpayer at the time of each payment.

Section V

OBLIGATIONS OF EMPLOYERS AND

RECIPIENTS

ART 68. - Any individuals or legal entity who pays taxed amounts must withhold tax for the benefit of the Treasury. Individuals subjected to the flat rate tax system pay an annual inclusive tax on income paid out to their employees. It must, for each beneficiary, record in a book, file or any other document intended for the registration of the payment: the date, nature and amount of the payment, the amount withheld, the reference to the pay slip required pursuant to paragraph 2 of article 69. The documents on which the payments made and amounts withheld are recorded, as well as the stubs of the pay slips, shall be kept until the end of the third year following the year of which the amounts were withheld. They shall be communicated, upon request, to the officer of the Tax Department; failure to do so gives rise to the penalties provided for in article 586. ART 69. - 1. The amounts withheld in regards to the payments made during a particular month shall be paid at the latest on the 25th of the following month, to the cashier of the Treasury of the individual dwelling place or registered address of the legal entity who withheld them. - 2. Each payment is made with a declaration which shall be made on a standard printed form dated and signed by the paying party indicating the period during which the amounts were withheld, establishment of the address, carreer field and number in the National Directory of Taxpayers of the individual or legal entity who withheld the amounts, as well as the total of the amounts withheld.

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Such declaration shall resume the various remunerations, allowances and reimbursements of expenses paid and benefits in kind granted during the course of the ending month - 3. A copy of the declaration is kept by the accountant as temporary recovery receipt. - 4. The copy intended for the taxable base service is forwarded by the Treasury’s assigned accountant to the Tax Inspector periodically and at the latest within the first ten days of the month for the payments of the previous month ART 69 bis. - Any employer or payer must provide to the Tax Department within the first fifteen days of february of each year, a declaration including for each legal beneficiaries first name, last name, title, gross income, allowances bonuses, extra wage, reimbursements of expenses paid and benefits in kind granted, withholdings for social security and ITS in the course of the ending year. Each missing element or inaccuracy found in the declaration gives rise to a fiscal fine of 5 000 UM. The late submission of the declaration gives rise to a fiscal fine of 2 000 UM. ART 69 Ter. - The provisions of this article are repealed are replaced by the provisions in article 478 Order 2000 – of January 10th, 2000 pursuant law of finances for 2000)

Section VI

PENALTIES ART 70. - Each missing element, deficiency and delays are punished in the conditions set out in article 61 of this code.

ART 71. - The provisions of this article are repealed are replaced by the provisions in article 478 Order 2000 – of January 10th, 2000 pursuant law of finances for 2000) ART 72. – Are evaluated and paid on a monthly basis or by an single recovery act the duties in the following cases: - signed declarations ; - failure to provide a declaration - declaration subjected to an automatic

error adjustement.

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CHAPTER VI

TAX ON INCOME FROM MOVABLE ASSETS

ART 73. -- A tax is imposed on income from movable capital property applicable to : - to products distributed by companies and other organisations which are liable to tax on industrial and commercial profits - to income from debts, deposits, guarantees, current accounts (compte courant).

Section I

GOODS DISTRIBUTED BY LEGAL ENTITIES SUBJECT TO TAXATION ON INDUSTRIAL AND

COMMERCIAL PROFITS

ART 74. - The followings are subject to the tax: 1. . Income from shares and partnership shares, eventually: - dividends, interest, arrears and other income

from shares of any nature and from founder's shares distributed by private companies and limited partnership;

- income from shares in limited companies - income from shares of partners in limited

partnership; - income from shares distributed by General

partnership companies whose purpose is commercial.

2. Down deposits when they directly available to the partners by individuals or a third party company. However, the tax may be reduced if the partner shows proof that the sums taxed were actually refunded to the company. 3. Reimbursements and depreciation in total or partially made by companies towards the total amount of shares, interests or partenership interests before their winding up or liquidation. 4. Remuneration or distributions to undisclosed recipients

5. Directors' percentages of profits, director's fees and any other remuneration paid on behalf of any account to the members of the board of directors or of the supervisory board of private companies. 6. Interest, arrears and other income of any nature of duties and other negociable loans, as well as the reimbursement bonus paid out the shareholder. 7 (nouveau) : Interest paid out by Treasury vouchers regardless of the due date and the legal beneficiary’s activity ART 74.bis. - nouveau : Dividends paid out to the head office by the branches are exempte from the income tax of the IRCM, as long as the 10% deducted from the dividend has been already transferd by the branches. ART 75. - The tax is payable whether or not the amounts or values distributed are taken from profits. ART 76. - When a company has its headquarters outside of Mauritania and carries out its activities in Mauritania, it is subjected to the payment of the income tax from movable capital in proportion to the profits said to be made in Mauritania. The distribution is carried out for each fiscal period based on the ratio between the profits made in Mauritania and the total accounting profit made by the company.

Section II

INCOME FROM DEBTS, DEPOSITS, GARANTEES AND CURRENT ACCOUNTS

ART 77. – Are subjected to income tax on movable capital when they are not included in the income of industrial, commercial or artisanal business or the ones in that obtained from the carrying out of a non commercial profession the followings :

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The interest, arrears of interest and all other income from the following are subject to the tax on income from movable capital, when they are not included in the income of an industrial, commercial or artisanal business, or in that obtained from the carrying out of a non commercial profession: 1. loans on mortgages, preferential debts and unsecured debts, except any commercial operation without the legal aspect of a loan. 2. deposits of sums or with a fixed due date. 3. cash guarantees 4. current accounts except excess interest from the current accounts of partners ART 78. – Are exempt from tax the interest of the sums registrered in the Saving notebook - interest of the sums registrered in the Saving

notebook - The interests issued on accounts opened with

the bank when the legal beneficiaries are families or mauritanians workers living outside of Mauritania and when the amount of the sums do not exceed one million ouguiya per year.

ART 79. - The tax is only due for the single reason of interest payment or upon its recording in the debits or credits of an account.

Section III

COMMON PROVISIONS

I. Rate and Taxable Base on Movable Assets

ART 80. The tax rate is 10%. It is applicable to gross income allocated or cash in by the legal beneficiary.

II. Tax Collection

ART 81. - The tax is collected by withholdings made on behalf of the Treasury at the time of each payment, by the individual or legal entity paying the income, interest, arrears of interest or any other sums referred to in articles 74 and 77.

It is paid to the cashier of the Treasury of the place of the headquarters or dwelling place of the individual who withheld it, within the first fifteen days of the months of January, April, July and October for income to be paid during the previous quarter. Each payment is attached with a certified copy of a notice on a standard printed form removed from a dated and signed notebook by the party paying including : - the period during which the withholdings were

made - the title, address, profession, dwelling place or

registered address and the Number in the National Directory of Taxpayers of the individual or legal entity who made the withholdings;

- the taxable base according to the nature of the income

- the total amount of withholdings The Treasury accountant keeps the first copy of the declaration and forwards the second to the concerned Tax service, at the latest on the 10th of the following month for the payments of the previous month.

III.Taxpayers Obligations

ART 82. - 1. Companies paying the income referred to in article 73 must provide to the General Director of the Tax Department, before April 1st of each year, the reports and briefings of meetings of the board of directors or shareholder meetings and failing such meetings, will require a certificate showing the profits or income actually distributed during the previous year. - 2. The companies referred to in paragraph 1 in the above, bankers, public officers and any individuals or legal entity usually receiving deposits of financial securities must provide to the General Director of the Tax Department, before April 1st of each year, a statement on a standard printed form issued by the authorities indicating for each income beneficiary subject to the tax on movable capital: - its first name, last names or company name, profession or activity, address or headquarters address and Number in the National Directory of Taxpayers;

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- the nature and amounts of income or revenue received during the previous year 3. Books, papers and documents of a nature enabling the checking and monitoring of the tax shall be filed in order to make it available, if necessary, to the Taxation officers up until the end of the third financial year following the year during which the payments were made.

IV. Penalties

ART 83. - The provisions of this article are repealed are replaced by the provisions in article 478 Order 2000 – of January 10th, 2000 pursuant law of finances for 2000)

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CHAPTER VII

GENERAL INCOME TAX

Section I

GENERAL INCOME TAX

ART 84. - A general tax is imposed on the annual global income of individuals having a dwelling place in Mauritania The following are considered to have a a dwelling place in Mauritania 1. Indivuduals who have at their disposal property as an owner or tenant 2. Individuals without a dwelling place in Mauritania in the conditions set out in the previous paragraph, nevertheless have in Mauritania their official place of living, or if they have bot establish a living there , carry out the main part of their activities there. 3. Individuals who, during their vacation outside of Mauritania, continue to be paid by their employers in Mauritania. ART 85. - 1. The general tax on income is imposed on all of the household income in the name of the head of the family. The household may be limited to one person if the concerned are singles, widows, divorcees or without any dependants. Every head of household is taxable, both on his personal income and that of his wife or wives and his children considered as his dependents according to article 110. 2. Nevertheless, the taxpayer may claim separate taxation for his minor children when they receive an income from their own work or from wealth other than his own. 3. A married woman may always, at her request, file taxes separately from her husband when she has her source of income distinct from that of her husband.

The calculation of her general income tax is then done on the basis of one taxable base only, which is deducted from the number of taxable base the husband may be entitled to pursuant to the provisions of article 108. ART 86. – individuals whose taxable income, divided by the number of tax units corresponding to their family status as set out in article 108, does not exceed the sum of 250 000 UM 2. Ambassadors and diplomatic agents, consuls and consular agents of foreign nationality, to the extent that the countries they represent grant similar advantages to Mauritanian diplomatic and consular agents.

Section II

PLACE OF TAXATION ART 87. - The tax is imposed at the dwelling place or at the principal establishment of the taxpayer in Mauritania. Failing to have a fixed dwelling place or establishment, the taxpayer is taxed at Nouakchott.

Section III

TAXABLE INCOME ART 88. - I. I. The tax applies to the total amount of gross annual income, including benefits in kind, which the taxpayer had at his disposal less deduction of the charges mentioned in paragraph II below. In relation to the employees of the public sector, the estimation of benefits in kind is determined by order of the Finance Minister. The annual gross income is constituted by the total amount of net income received from various sources defined as followed: 1. Income from industrial, commercial and artisanal activity as well as income from non commercial activities and other in the same category.

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Are considered, the income used for a taxable base for the taxation on industrial, commercial and artisanal profits as well as the profits made on non commercial and other similar Regarding to the taxpayers subjtected to flat rate rate tax system, net income on industrial and commercial profits to be deducted are fixed according to the following scales: a) Taxpayers whose main activity is to sell goods, objects, supplies and food products to be taken home or consumed on the spot, or to supply accommodation: Category Amount of Taxable Profit 1st category 100.000 UM. 2nd 150.000 UM. 3 rd 200.000 UM 4 th 300.000 UM. 5 th 400.000 UM. 6 th 500.000 UM. 7 th 600.000 UM. b) Taxpayers exclusively proving services Category Amount of Taxable profit. 1st category 100.000 UM. 2nd 200.000 UM. 3 rd 300.000 UM. 4 th 400.000 UM. 5 th 500.000 UM. 6 th 600.000 UM.

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c) Carriers and owners of utility vehicles with a load bearing capacity exceeding two tonnes:

Income per vehicle as from January 1st,1986 1°. Tourism vehicles providing inbound and outbound transportation and city taxi of the surrounding areas other than Nouakchott 30.000 UM. 2°. Tourism vehicles providing inbound transportation in the area of Nouakchott 50.000 UM. 3°. Utility vehicles with a load bearing capacity equal to or less than eight tonnes 100.000 UM. 4°. Utility vehicles with a load bearing capacity from eight to twelve tonnes 160.000 UM. 5°. Utility vehicles with a load bearing capacity exceeding twelve tonnes 400.000 UM. 2. Income from real estate property The taxable income is constituted by the annual income rent from all the rented properties which is used as the base for the calculation of the tax on real estate property. The concerned annual rental value shall be witheld, even when the rental period is less than the year of taxation. 3. Wages, salaries, pensions and income from life annuity. Wages, salaries, pensions and income from life annuity which have not been submitted to the tax on wages, salaries, pensions and annuities provided for in article 62, are liable to tax. 4. Income from movable capital 5-The concerned sources of income are referred to in articles 74 and 77 and shall be taken into account in the global annual income. However, the followings are exempt from the general tax on income a) reimbursements and depreciation, in part or in whole, by companies towards the amount of their shares, interest share of a general partnership, before their winding up or liquidation;

b) the distributions of reserves in the form of the increase of capital or the merger of companies, the free allocation of shares, partnership shares, shares in the capital of a company or debentures or any capital gains resulting from such allocation. 5) capital gain capital gain withdrwan from the transfer of movable capital, real estate property or share made by individuals not subjected to tax on industrial and commercial profit as well as non commercial profits. II. The expenses listed below are deductible from the global income when they are in compliance with the followings conditions: - they have not already been taken into account for

the determination or evaluation of net income for the various categories;

- they have actually been paid by the taxpayer

during the course of the year for which the general income tax is calculated;

- they are justified by conclusive documents

attached to the declaration of income, such as receipts of payment, copies of loan documents, copies of court orders, testimonials of the beneficiaries as to the sums paid and so forth...

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1. Interest on loans of which the taxpayer is accountable for, taken to acquire or build a property in Mauritania for the purpose of his personal accommodation as a principal residence. 2. Pensions for wich the amount is set by court order. 3. Scheduled taxes related to income subjected to the general income tax (tax on industrial and commercial profits, tax on non commercial profits, tax on wages and salaries, tax on income from real estate property, tax on income from movable capital) and the Zakat fixed at a rate of 2,5% towards income provided that the declaration issued by the authorities is attached . 4. Voluntary payments for the constitution of pensions or retirement payments up to 6% of the net professional income 5. Bonus related to insurance contracts for which the performance depends on the length of the human lifetime or guarantee in the event of a death the payment of sums to the spouse, ancestors or descendants up to 6% of the net professional income. 6. Food allowance paid to the ascendants up to a cumulated amount of 48.000 UM per year. 7. Sponsorship in the benefits of the public community and charity organisation fixed at the rate of 1% on revenue if a statement from the concerned administration is provided along. ART 89. - When during the course of a year a taxpayer has realised an exceptional income, such as the capital gains of a business, and that the amount of this exceptional income exceeds the average of the net income on which the taxpayer has been imposed a general taxation for the past three years, the concerned taxpayer can require the taxable base to be spread out over the year of the productivity and the previous years not covered by the prescription. This provision is also applicable to the taxation of capital gains on a business following the death of the business operator.

The same facility is granted to taxpayers who, due to circumstances independent from their will, have, during the course of the same year, received income according to its normal maturity terms, would correspond to a period of several years.

Section IV

TAXABLE INCOME OF FOREIGNERS AND INDIVIDUALS NOT LIVING IN MAURITANIA

ART 90. - Taxpayers of foreign nationality who have a dwelling place in Mauritania are taxed in according to the rules set out in articles 85 to 89. However, the income from foreign sources for which the taxpayers in question show proof of payment of a personal tax on global income in the country from which they originate, are excluded from the taxable income. ART 91. - 1. Individuals with foreign nationality or Mauritanian nationality who do not have their dwelling place in Mauritania are taxable on the profits or income received or realised by them in Mauritania. 2. Public officers and agents of the Mauritanian government carrying out their functions, or travelling on an official trip in a foreign country and exempt from personal income tax on the whole of their income in such country, are taxable according to the same rules that apply to taxpayers living in Mauritania. ART 92. - In addition any income the taxation of which is attributed to Mauritania by an international convention relating to double taxation, is subject in Mauritania to the general tax on income.

Section V

INCOME TAXATION ON THE YEAR OF PURCHASING A HOME OR ARESIDENCE IN

MAURITANIA

ART 93. - The provisions of this article are repealed. (Order n° 86.006 of 01/13/1986 pursuant law of finance for 1986).

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Section VI

INCOME TAXATION ON THE YEAR OF TRANSFER OF RESIDENCE ABROAD OR ABANDONMENT OF ANY RESIDENCE IN

MAURITANIA ART 94. - 1. The taxpayer living in Mauritania who transfer his dwelling place to a foreign country is liable to the general income tax he received during the year of his departure up until the date of such departure, on the industrial, commercial or craft profits and on non commercial profits he has made since the end of the last taxed fiscal period, as well as any income produced but not available to him prior to his departure. 2. A temporary declaration of taxable income pursuant to paragraph 1 above is made during the ten days preceding the date of the departure. It is subject to the rules and penalties which apply to annual declarations. 3. The contributions due are calculated upon receipt of the temporary declaration. They are payable immediately and collected in advance.

Section VII

PROVISIONS APPLIED IN THE EVENT OF THE TAXPAYERS DEATH

ART 95. - The income received by the taxpayer during the year of his death and industrial, commercial or artisanal profit, non commercial gains that he has realised since the end of the last taxed fiscal period, are taxed according to the laws applicable as of January 1st of the year of the death. The filing for the tax on income is produced by legal beneficiaries of the deceased within six months of the death’s date. It is subject to the rules and penalties applicable to the annual declarations. Requests for justification and proof as well as the notifications provided for in articles 101, 102 and 103 may be validly sent to any of the legal beneficiaries.

Section VIII

HIDDEN REMUNERATIONS ART 96. - Joint stock companies, limited liability companies, general partnerships and private companies which, directly or indirectly, pay to individuals whose identity are not revealed any commissions, brokerage fees, commercial or non commercial discounts, bonuses, allowances and any other remuneration or distribution, are subject to the general income tax on the total paid out amount. The taxation is carried out on one assessment and each year is assessed on the amounts paid during the period chosen as the taxable base for the tax on industrial and commercial gains payable for the same year. The declaration of the taxable amounts is made at the same time as the declaration related to the tax on industrial and commercial profits made in accordance with the provisions of article 14. The highest rate applicable to the general tax on income is applied to the total amount so declared, without any tax allowance. The contribution is increased by 80% for hidden profits and gains not declared to the authorities within the conditions set out in this article. The contributions due as well as the amounts paid or distributed are excluded from the deductible charges for the assesment of income submitted to the tax on industrial and commercial profits.

Section IX

EMPLOYERS OBLIGATIONS

ART 97. - Repealed (order no. 87.003 of 07.01.1987 – Pertaining to Finance law of 1987). ART 98. – Repealed (order no. 87.003 of 07.01.1987 – Pertaining to Finance law of 1987). ART 99. - Repealed (order no. 87.003 of 07.01.1987 – Pertaining to Finance law of 1987). ART 99 bis. - Repealed (order no. 87.003 of 07.01.1987 – Pertaining to Finance law of 1987).

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Section X

DECLARATION - MONITORING – AUTOMATIC

TAXATION

ART 100. - All taxpayers must file, every year, before March 1st, a declaration of the income they have received the previous year, indicating by source of income the elements which the income is composed of. The declaration must also include a detailed listing of lifestyle’s elements. The allowed time period mentioned in the previous paragraph is nevertheless postponed to April 1st for taxpayers who are subject to the regime of actual gain, to industrial and commercial profits as well as the tax on non commercial profits. Such declaration, made on a standard prescribed printed format made available to the interested parties by the Taxation Department shall be dated, signed and provided to the Inspector of the place of taxation. ART 101. The Tax Inspector checks the declarations; he can request from the taxpayer any clarifications and justifications: a) On his status and family expenses. b) In regard to the expenses deducted from total income pursuant to the provisions of article 88. The Tax Inspector can also request explanations when he has gather information which enables him to establish that the taxpayer has reduced the amount of total income declared.

ART 102. - The clarifications, justifications or explanations mentionned in the previous chapter may be requested verbally or in writing. If the taxpayer has refused to answer a verbal request or when the answer to such request is considered by the Inspector to be equivalent to a refusal to respond to all or some of the points to be clarified the Inspector shall renew his request in writing. All written requests shall indicate specifically the points on which the Tax Department thinks it necessary to obtain clarification or justifications and shall grant to the taxpayer a period of 8 days to provide his response. ART 103. - The Tax Inspector may make some adjustments to the declarations in accordance with the procedure set out in article 474. ART 104. - The following are automatically sbject to taxation : 1. Any taxpayer who has not signed a declaration of his income as provided in article 100. 2. Any taxpayer who has failed to answer and provide any clarification, justification or explanation of the Inspector. ART 105. For the purpose of application of the provisions of article 104 above, the taxable income cannot be less than an estimated sum calculated by applying to certain elements of the taxpayer's lifestyle the following scales:

Elements included in lifestyle Corresponding estimated Income

- Dwelling place and secondary home - Domestique - vehicles

- Twice the annual rental value of each building - 50 000 UM per servant - Three quarters of the value of each car (new car value) with a rebate of 20% after one year of use and of an additional 10% per year for the following four years.

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Furthermore any open or evident personal expense exposed by the taxpayer are also taken into account in the determination of the taxable income. ART 106. - The taxpayer who is subjected to automatic taxation does not have judicial recourse to obtain the cancellation or reduction of the taxation he is liable to except if he has proof of being overcharged.

Section XI

TAX COMPUTATION ART 107. - For the calculation of tax, the taxable income rounded down to the nearest one hundred ouguiyas is divided into a specific number of units according to article 108 considering the family status and expenses of the taxpayer; income corresponding to an entire unit is taxed by application of a progressive scale. The tax due by the taxpayer is equal to the result of the contribution obtained in that manner by the number of units. ART 108. - The number of units to take into consideration for the division of taxable income as set out in the previous chapter is as follows: - Single, divorced or widowed without dependants ... 1 - Married without dependants ... 2 - Single or divorced with one dependent child .. . 2 - Married or widowed with one dependent child 2,5 - Single or divorced with two dependent children 2,5 - Married or widowed with two dependent children .. 3 - Single or divorced with three dependent children .. . 3 - Married or widowed with three dependent children 3,5

- Single or divorced with four dependent children . 3,5 and so forth, increasing by half a unit per child dependent upon the taxpayer Disabled children over minor age count for one whole unit. In the event the taxpayer has several spouses, each spouse counts for one unit. A widow who has one or several dependent children not born from the marriage with the deceased spouse is treated as a single person with the same number of dependants. Finally, the number of units to be considered shall not, in any case, exceed five. ART 109. - As an exception to the preceding provisions, the taxable income of single, divorced or widowed taxpayers who do not have a dependent child is divided by 1.5 when such taxpayers: a) have adopted a child. b) are entitled to either a work accident, or war invalid pension, or a pension of widow of war, of at least 40%. ART 110. - The taxpayer's legitimate under age or disabled children or children less than 25 years old who are studying are considered to be dependent upon the taxpayer. ART 111. - For the purpose of applying articles 108 and 110, the situation to be retained is that existing as at December 31st of the year of receipt of the income. However, in the event of departure or death of the taxpayer, the situation taken into account is the one at the date of departure or death.

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ART 112. - The rates applicable to the taxable income corresponding to a unit are, for each income bracket, determined as follows: - Over 250 000 to 750 000 : 5% - Over 750 000 to 1.500 000: 15% - Over 1.500 000 to 2.500 000 : 25% - Over 2.500 000 : 33%

Section XII

PENALTIES

ART 113. - The provisions of this article are repealed are replaced by the provisions in article 478 Order 2000 – of January 10th, 2000 pertaining to law of finances for 2000)

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TITLE 2

VARIOUS TAXES

Articles 114 to 154 : Reserved

CHAPTER I

TAX ON MOTOR VEHICLES

I. Application Field ART 155. A tax is imposed on motor vehicles registered in Mauritania ART 156. - The following are exempt from the tax: 1. Vehicles belonging to the State and to territorial communities 2. Vehicles specially customed to be used by injured and the disabled 3. Heavy vehicles or machines considered to be public work tools, except trucks;

4. New vehicles intended for sale, imported by licensed automobile dealers; 5. Unusable vehicles 6. Vehicles owned by individuals entitled diplomatic privileges

II. Tax Rates ART 157. - The tax rate depends on the use of the vehicle and on its fiscal power. Tax rates are fixed as follows: a) Tourism vehicles:

Power (HP) Rate (UM)

Less than or equal to 4 hp : 10 800 UM from 5 to 7 hp : 15.000 UM from 8 to 11 hp : 19 800 UM from 12 to 16 hp : 27.000 UM Superior to 17 hp : 46 800 UM

b) Vehicles assigned to the public transport of people or goods :

PUISSANCE TARIF (UM) TARIF Inférieur ou égal à 7 CV : 6.900 UM De 8 à 11 CV : 9.000 UM De 12 à 16 CV : 12.000 UM Supérieure à 17 CV: 18 000 UM

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III. Taxation Period - Payability

ART 158. - The taxation period is from January 1st to December 1st The whole year tax is due on all non-exempt vehicle by owners. It is payable on January 1st. However, for a new or used vehicles put on the roads during the course of the year, the tax is payable during the month the vehicle is first put on the road in the Mauritanian territory. The tax is not applicable to the mentioned above vehicle when they are put on the road after Octobre 1st. ART 159. - No tax reduction is granted during the course of the year in event of a sale, destruction, theft, ceasing of use of the vehicle or accident causing the vehicle to be unusable.

IV. Tax Payment

ART 160. The tax payment must occur before February 1st of each year or within thirty days of the first putting onto the road in the Mauritanian territory when the vehicle is put on the roads during the course of the year. ART 160. Bis- As an exception to the preceding provisions, for individuals or entities working in the field of transport of persons or goods , the payment of the Tax must occur before April 1st of each year, or within thirty days of the first putting onto the road in the Mauritanian territory when the vehicle is put onto the road during the course of the year. ART 161. - The tax is paid upon the mandatory presentation of the vehicle registration :

- In Nouakchott, by the Registration

Office; - in the towns, by the Tax Inspector for

the area. A standard declaration form is provided in duplicate to the taxpayer by the Taxation Department to enable him to immediately pay the amount of the tax to the cashier of the Treasury accountant. The sticker proving the payment of the tax on motor vehicles is provided by the Taxation Department upon presentation of the receipt provided by the Treasury. The agent in charge of delivering the sticker states on the back of the receipt: - the vehicle registration number - the fiscal power; - the date of first putting on the road in

the Mauritanian territory; - the number, category and value of the

sticker. He confirms the accuracy of such information by affixing the stamp of the distributing office. The payment receipt is kept by the driver of the vehicle to be presented at the request of the agents designated pursuant to article 165 of this code. The sticker, in the form of an adhesive stamp, shall be directly fixed to the bottom right corner of the windscreen of the automobile, so that it can be read from outside the vehicle. A copy of the declaration is kept by the accountant as a recovery document The copy intended for the relevant tax office is sent to it periodically and at the latest within the first ten days of the month for the payments of the previous month. ART 162. - The provisions of article 162 are repealed. (order no. 89-010 of 18/01/1989 pertaining to the finance law of 1989)

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ART 163. - In the event of sale of the vehicle during the course of the taxation period, the successive assignees are jointly liable for the payment of the tax.

V. Specific Provision: Carriers

ART 164. - The delivery of stickers to transport providers and to the owners of utility vehicles with a load bearing capacity exceeding two tonnes is subject to the payment of the Tax on vehicles and on licences on commercial and industrial profits that must have been previously paid according to article 160-bis mentionned above.

VI. Monitoring ART 165. - The payment receipt shall be presented at the request of any duly commissioned tax officer and of any other officer empowered to give fines related to road traffic matters.

VII. Penalties ART 166. – The provisions of this article are repealed are replaced by the provisions in article 478 Order 2000 – of January 10th, 2000 pertaining to law of finances for 2000) ART 166.Bis. – Failing to affix the stamp according to article 161 is liable to a fine of 2000 UM. ART 167. - Vehicles for which tax payment is not proven, or the license of the transporter as well as all taxes and duties, is liable to be impounded at the owners expenses. ART 168. - Whoever knowingly uses or operates fake sticker or a sticker not corresponding to the vehicle for which it was issued, is punishable by the penalties set out in article 479.

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CHAPTER II

APPRENTICESHIP TAX

I. Individuals liable to tax ART 169. - An apprenticeship tax is payable in regards to any individuals or legal entity liable for the tax on industrial and commercial profits, on the basis of the remuneration it pays to its employed staff.

II. Taxable Base ART 170. - The tax is payable each year on the total amount of wages, salaries, allowances and remuneration of any kind, including benefits in kind, paid by the head of the business during the period for which the income is witheld as the taxable base on industrial and commercial profits.

III. Taxation Establishment ART 171. - The tax is fixed in the name of each party liable to taxation for all of the businesses operated in Mauritania, at the registered address of the businesses, or failing to do so , at the headquarters address . ART 172. - Every CEO of a business liable to taxation must submit each year, before February 1st, to the Tax Inspector, a declaration mentioning the followings : 1. his first name and last names, the name of his business, its registered address, and if needed the principal place of business, the Number on the National Directory of Taxpayers 2. the total amount of wages, salaries and remuneration of any kind paid during the taxable period, specifying : a) sums of money. b) sort of payment made

ART 173. In the case of transfer or cease of business as well as in the case of the death of the operator, the declaration to be made pursuant to article 172 shall be produced within 30 days following the transfer, cease or death.- The tax calculated on the total amount of the remuneration paid to the employees of the business, since January 1st, is payable immediately. IV. Checking of Declarations - Rate and

Tax Calculation ART 174. - The Inspector checks the declarations and may rectify them in accordance with the amendment procedures set out in article 474 The tax rate is estimated at 0,60 %. For its calculation, the tax base is rounded down to the nearest hundred ouguiyas. ART 174.Bis. - Taxpayers must calculate on their own and pay the amount of the tax due, at the latest on the last day of the deadline to provide a declaration according to article 172. The payment made to the assigned accountant of the Treasury is made with two copies of a payment receipt taken out from a book of forms provided by the authorities. A failure to pay in whole or in part in accordance to the previously mentionned conditions is punishable by a 60% increase and the defaulting taxpayers are listed on a collective or individual list.

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V. Complete or Partial Tax Exemptions

ART 175. - 1. At the request of taxpayers submited each year to the General Director of Tax department before February 1st, partial or total exemptions may be granted considering the effort made by them for the purpose of developing technical education and apprenticeships, either directly, or through the Chamber of Commerce or any association volontarely offering its resources to that purpose. 2. Taxpayers subject to the apprenticeship tax may be entitled to a rebate of the said tax equal to 400 UM per apprentice whose presence in their business as for January 1st of the year of taxation is legally proven, and with whom an apprenticeship contract in due form has been signed. Such rebate cannot exceed 50% of the payable tax due to the fact of the total remunerations paid to all their personnel.

VI. Penalties ART 176. The provisions of this article are repealed are replaced by the provisions in article 478 Order 2000 – of January 10th, 2000 pertaining to law of finances for 2000)

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LIVESTOCK TAX

ART 177. Repealed ART 184 : Reserved

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CHAPTER II

TURNOVER TAX - GENERAL PROVISIONS

ART 185. - The tax on turnover applies to the operations defined in article 186. ART 186. - The operations set out in article 177B which do not fall within the field of application of the value added tax, shall be subject to the tax on turnover. ART 187. - The provisions of this article are repealed (order No 94.010 of January 24 ft, 1994 – amending the changes on General Tax Code) ART 188. – Are considered liable to tax on turnover all individuals carrying out the operations referred to in article 177B in an independent manner, either on a regular or occasional basis, and who do not fall within the field of application of the value added tax.

Section I

IMPORTS ART 189. - The provisions of this article are repealed (order No 94.010 of January 24 ft, 1994 – amending the changes on General Tax Code) ART 190. - The provisions of this article are repealed (order No 94.010 of January 24 ft, 1994 – amending the changes on General Tax Code) ART 191. - The provisions of this article are repealed (order No 94.010 of January 24 ft, 1994 – amending the changes on General Tax Code)

ART 192. - The provisions of this article are repealed (order No 94.010 of January 24 ft, 1994 – amending the changes on General Tax Code) ART 193. - The provisions of this article are repealed (order No 94.010 of January 24 ft, 1994 – amending the changes on General Tax Code) ART 194. - The provisions of this article are repealed (order No 94.010 of January 24 ft, 1994 – amending the changes on General Tax Code)

Section II

SALES ART 195. - The provisions of this article are repealed (order No 94.010 of January 24 ft, 1994 – amending the changes on General Tax Code) ART 196. - The provisions of this article are repealed (order No 94.010 of January 24 ft, 1994 – amending the changes on General Tax Code) ART 197. The provisions of this article are repealed (order No 94.010 of January 24 ft, 1994 – amending the changes on General Tax Code) ART 198. The provisions of this article are repealed (order No 94.010 of January 24 ft, 1994 –amending the changes on General Tax Code)

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ART 200. - The provisions of this article are repealed (order No 94.010 of January 24 ft, 1994 – amending the changes on General Tax Code)

FIXED SUM

ART 201. - The taxpayers liable for the tax on turnover who are subject to the regime of estimated tax on industrial and commercial profits are subject to this tax on a fixed sum basis according to their turnover according to the following scale:

Tunrover Taxes < 500.000 10.000 from 500.000 to 1.000.000 20.000 from 1.000.000 to 2.000.000 30.000 from 2.000.000 to 4.000.000 50.000 from 4.000.000 to 6.000.000 90.000

Section III

RENDERING OF SERVICES

I. Field of Application ART 202. – Are liable to tax on tunrover all the individuals or legal entities carrying out in an independent manner, either on a regular or occasional basis : - banking operations, - financial operations, - credit operations. Are also subjected to the tax on turnover all service providers liable to the flat rate tax system in relation to the BIC who are not subjected to the value added tax.

II. Exemptions

ART 203. - The following are exempt from the tax: agios related to the capital gathering by means of rediscounting, pensions, of public or private securities included in banks portefolio, financial corporations, or public or semi-public organisations able to carry out discount operations.

III. Generating Fact ART 204. - For customers other than the State, the completion of the services provided represent the tax point. For services provided to the State, the tax point is made of cashing of the deposit, of the amount of remuneration.

IV. Rate and Base

ART 205. - The tax rate is set at 16% of the service price, all expenses and taxes included, excluding the tax on turnover itself. ART 206. – The tax on Added Value and the tax on service provided which have burdened the price elements of a taxable operation are not deductible from the tax on services provided applicable to such operation. The taxable base is made up by all the sums, values, goods or services received or to be received by the service provider for his services, excluding the tax on services provided itself.

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For the application of this article, small supplies shall be included in the taxable base. ART 207. The provisions of this article are repealed are replaced by the provisions in article 478 (Order No 94.010 of January 24 ft, 1994 – amending the changes on General Tax Code)

FIXED SUM ART 208. - Service providers liable to the tax on turnover and subjected to the estimated tax system with respect to the tax on industrial and commercial profits are subject to the tax on a fixed sum basis according to their turnover, following the scale below:

Tunrover Taxes Less than 200.000 15.000 from 200.000 to 500.000 30.000 from 500.000 to 1.000.000 45.000 From 1.000.000 to 2.000.000 60.000 From 2.000.000 to 3.000.000 90.000

Section IV

COMMON PROVISIONS

I. Taxpayers Obligations ART 209. – Any individual subjected to the tax on services provided shall sign a declaration of existence within twenty days of the commencement of his or her operations or opening of his or her business. The declaration of existence is provided to the General Director of the tax department. It shall state, in specifically, the name or business name, the field or line of work and address of the taxpayer. Any changes related to the declaration must be notified to the General Director of the tax department within twenty days. Are exempts from the above mentionned rules,

the companies filing within deadlines prescribed in articles 14 and 17. ART 210. - Those liable for the tax on services provided shall keep detailed accounts records according to the provisions of the Mauritanian general accounting plan. The accounts shall distinguish between matters subject to the tax at various rates and those that are exempt. Accounting documents and supporting documents, in particular the authorisations of transfers of currencies, customs declarations, sale and purchase invoices, documents showing assets received and expenses, shall be kept for at least six years following the year during which the imports, purchases, sales or services, were recorded in the accounting records. The autorities can make adjustment to the declaration according to the 474.

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The elements used for the calculation of the tax on services provided may be adjusted automatically in the following cases: - 1. . In the event of the failure to produce the accounts or the special imports accounts book; - 2. If serious and repeated errors, omissions or inaccuracies are found in the accounting of the activities carried out; - 3. . If the absence of supporting documents deprives the accouting department of any accountability. The taxpayer who is automatically taxed, or who is subjected to an automatic adjustment procedure, cannot obtain through the judicial process the discharge or rebate of the taxes of which he is liable to, except if he has proof of being overcharged. ART 211. - Taxpayers liable to the tax on services provided, except for those who are subjected to the estimated tax regime, must hand out to the accountant of the Treasury of the registered address of their business, at the latest on the 15th of each month, a declaration complying with the form prescribed by the authorities and in regards to the activities carried out the previous month.- The payment and recovery of such tax are carried out in the conditions set out in articles 184 Septiès, Octiès, Noniès et décès ART 211 Bis. - are automatically taxed : 1. Any taxpayer who has not subscribed to the declaration provided for in article 211 within the prescribed deadlines; 2. Any taxpayer who has failed to answer the requests for justification or clarification of the Inspector. ART 212. - Those taxpayers subjected to the the tax on services must calculate themselves and pay, not later than the 15th of each month, to the cashier of the assigned accountant for the registered

address of their business, the amount of tax due on taxable operations carried out the previous month. Each payment is submitted with the declaration referred to in article 211. ART 213. - Taxpayers supplying goverment agencies carry out the payment of the tax according to the conditions stated in article 212, except for the amount of the tax already witheld pursuant to the provisions of article 508. They must distinguish in the declaration provided for in article 211 between the amount of services provided to the government agencies, and the amount of other services provided. II. Taxpayers Subject to the Fixed Sum

System ART 214. - The taxpayers subjected to the estimated tax system must make an automatic the tax payment during the anual inventory. In regards to such matter the money drawn up as the immediate payment is authorised to recover payable duties in exchange for a payment receipt taken from an accounting notebook. However, beside the number and the date of the payment receipt has to be added the title representing officialy the recovery. Taxpayers who cease their activity during the course of the year may obtain a rebate of their estimated fixed sum prorata from the time in between the first day of the month following that of the ceasion and December 31st. ART 215. - In the event of disagreement on the amount estimated by the Tax Officer the taxpayer may request through judicial procedure according to the conditions set out in articles 560 and 561, a rebate of his taxation.

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He shall provide in order to support his claim all accounting elements of any nature to enable the understanding of the amount of turnover actually made.

III. Penalties ART 216. - The provisions of this article are repealed are replaced by the provisions in article 478 Order 2000 – of January 10th, 2000 pertaining to law of finances for 2000) ART 217. - The provisions of this article are repealed are replaced by the provisions in article 478 Order 2000 – of January 10th, 2000 pertaining to law of finances for 2000) ART 218. - The provisions of this article are repealed are replaced by the provisions in article 478 Order 2000 – of January 10th, 2000 pertaining to law of finances for 2000) ART 219. - The provisions of this article are repealed are replaced by the provisions in article 478 Order 2000 – of January 10th, 2000 pertaining to law of finances for 2000)

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CHAPTER III

TAX ON COMMODITIES

Section I

TAX ON OIL PRODUCTS

ART 220. - 1. Are liable to tax on oil products, Liquid hydrocarbons other than crude oils (super fuel, ordinary automobile fuel, paraffin oil, gasoline, diesel oil, heavy fuel, light fuel), except for fuel oils meant to be used in aviation (plane fuel, jet fuel). 2. Ordinary and super auto fuels are subjected to the specific tax known as as the "Company Margin Tax". ART 221. - – However, products delivered to high seas vessels and to fishing ships for consumption on sea or to a commercial aircraft, are exempt from taxation. ART 222. - 1. The rates applicable to the tax on oil products are according to the folowing : - 25 UM per litre for super fuel - 24 UM per litre for ordinary auto fuel (except for reloading for craft fishing) -0.86 UM par litre pour le pétrole lampant ; - 5.5 UM per litre for paraffin oil (gas-oil); - 4.5 UM per litre for diesel oil and light fuel (fuel-oil) ; - 4.5 UM per litre for heavy fuel (fuel-oil) - 4.2 UM per kilogram for greasing oils and lubricants; - 1.04 UM per kilogram for liquefied gaseous hydrocarbons (butane, propane). 2. The Tax Rate on the gross margin for companies selling oil products is fixed as the followings below: - ordinary fuel: 300 UM per hectolitre -super: 300 UM per hectolitre - gas-oil: 120 UM per hectolitre.

Section II TAX ON ALCOHOLIC BEVERAGES

ART 223. - A tax is mandated on alcoholic beverages that are meant to be consummed in Mauritania. ART 224. – Are exempt from taxes any imports, ceasion, and similar transactions associated with the following products: 1. Medication products containing alcohol, except alcohol mint 2. Alcoholic beverages produced from already taxed alcohol product 3. Alcoholic beverages intended to be exported from Mauritania 4. Brut alcohols intended for research and study laboratories of scientific and educational establishments. ART 225. - The tax rate on alcoholic beverages, which applies to the customs value inclusive of all taxes, excluding the tax on alcoholic beverages itself, is set at: - beer : 195 % - ordinary wines : 209 % - sparkling wines and champagne 229 % - whisky, vodka, rum, gin, brandy :294 %

Section III

TAX ON TOBACCO PRODUCTS ART 226. - The provisions of this article are repealed. Law n°2006 – 01 pertaining to law of finance for 2006)

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ART 227. - The provisions of this article are repealed. Law n°2006 – 01 pertaining to law of finance for 2006)

Section IV

TAX ON VARIOUS FOODS PRODUCTS

ART 228. It is established a consumption tax on sugar at the rate of 7,5% of the value. ART 229. - The provisions of this article are repealed. Law n°2006 – 01 pertaining to law of finance for 2006)

Section V

COMMON PROVISIONS

I. Taxable Operations ART 230. - The following are liable to the consumption tax set out in this chapter : - In regards to imported products,

including those originating from any country member of the CEAO and of the CEDEAO, all release for consumption on the Mauritanian territory according to the customs terms.

- Are also considered imports, the entry of goods coming from any country a member of the CEAO and of the CEDEAO.

- In regards to the goods produced in Mauritania, any transfer made whether for payment or for free, and carried out lawfully or in fact in the legal delivery condition on the Mauritanian territory.

ART 231. – Are eventually liable to tax : - imports carried out by cooperatives and

buying groups - products taken by manufacturers or

producers for their own needs;

- Personal or family consumption or use for

individuals, when the use is affecting imported goods from abroad.

II. Taxpayers Obligations

ART 232 - The tax is paid: - For goods originating from abroad, by

the importing party or the first real consignee in Mauritania;

- For goods produced or manufactured in Mauritania, by the producer or the manufacturer.

ART 233. - Any taxpayer liable to consumption tax must keep a logbook which shows by nature, quantity and quality: 1. For imports and entries of goods wherever they originated from, including from a country member of the CEAO or the CDEAO: - the dates of import declarations or the

dates of receipt; - the quantities imported or received; - the dates and numbers of receipts

relating to the payments. The logbook must be assessed and initialled by the General Director of Customs or his representative. 2. For goods produced or manufactured in Mauritania: - the stocks as at January 1st of each

year; - the production recorded on a daily basis; - the exits also recorded on a daily basis The logbook must be assessed and initialled by the General Director of Customs or his representative.

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ART 234. - For goods produced or manufactured in Mauritania, taxpayers liable to consumption tax provide to the General Director of Tax Departement before the 15th of each month a declaration indicating the quantities sold or taken during the course of the previous month. ART 235. - Taxpayers discharge and pay the taxes to the Treasury before the 15th of each month, for taxable operations carried out on the previous month.

III. Particular Provision ART 236. Consumption taxes on imported goods are discharged, at the time of importation, by the Customs Department, in the same conditions as customs duties and taxes.

IV. General Provision

ART 237. - The rules relating to the tax on turnover which are not inconsistent with the provisions of this chapter are applicable to the consumption tax.

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CHAPTER IV

OTHER INDIRECT TAXES

Section I

TRAFFIC TAX ON MEAT PRODUCTS ART 238. - A tax is fixed meat trafficking It is one time fee payable, before the departure of the goods from individual slaughterhouse shops or from commercial slaughterhouses or before made available for consumption in the case of imported meats.

I. Taxable Products ART 239. – Are subjected to the tax on meat trafficking meat from slaughterhouses intended for sale and the following animals listed below: - Bovids: oxen, bulls, cows, calfs, bullocks

and bull-calfs, heifers - Ovids: rams, sheep, ewes and lambs; - Caprines: billy goats, goats and kids; - Camelides: camels, she-camels and their

young.

II. Exemptions ART 240. - The following are exempt from the tax on meat trafficking 1. Exported meats; 2. Meats seized by health control services.

III. Subject Liable to Tax ART 241. – Are liable to tax on meat any individuals or legal entities, as well as public establishments entitled to slaughter livestock for the marketing of the meat, or who import meats listed in in article 239.

IV. Various Provisions ART 242. -- 1. Local production meats. The taxable base, the receipt rules and the rate of the meat trafficking tax are determined by order of the local Councils. 2. Imported meats. The weight to be retained for the tax base is the weight of the animal once slaughtered and skinned. The head, hoofs, and the organs contained in the ribcage and in the abdominal cavity give rise at the time of payment of the tax, to a right to a rebate equal to 10% of the weight of the meat. The rate is fixed uniformly at 50 UM per kilo.

V. Taxpayers Obligations ART 243. - Only those individuals or legal entities which hold a professional license card delivered by the authorities in the conditions set by decree, may exercise the profession of butcher.- Meat importers shall sign a declaration of existence with the representative of the administrative authority of their area (Governor or Prefect) and shall keep a logbook assessed and initialled by such authority, mentionning : 1. the date of declaration of importation; 2. the nature, weight and quality of the imported meats. The taxpayers discharge their liability and pay the tax to the Treasury as the operations referred to in article 238, 2nd paragraph, progress.

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VI. Temporary Provision

ART 244. - The product of the local meat trafficking tax is assigned to the budget of the territorial community within which the tax was received.

Section II

SPECIAL TAX ON MOVIES PROJECTIONS

ART 245. –It is established a special tax on on movie projections. ART 246. – The tax affects revenue made by companies carrying out movie production activities and other sources such as :. 1- revenue from movie ticket sales 2. 2-revenue from Renting movies to theather owners or individuals. ART 247. – The tax rate is set at 1,50%. The taxable base is assessed with the gross income and taxes. ART 248. - It is established a another tax in addition to the regular tax on on movie projections of wich the rate is set at 5 UM per sold ticket. ART 249. – The taxpayers liable to the tax on on movie projections and the additional tax must themselves and pay, not later than the 15th of each month, , to the cashier of the assigned accountant for the registered address of their business, the amount of tax due based on the revenue made from movie ticket sales during the previous month. The payment shall be made with two copies of a delivery note for which the format is provided by the authorities.

ART 249.Bis. –The Tax Department Inspectors have access to the movie theathers if needed for verifications. They can also proceed with the verification of the cashier stand and the material inventory if needed. ART 249.Ter. (nouveau). - An airport tax is mandated for each commercial filght.The tax is based on the number of passengers boarding from Nouakchott, it is set at 6000 UM per passenger traveling abroad. For children under the age of 2 years old the tax is set at 2000 UM. Airline companies are responsible for collecting and paying such tax. Airline companies must provide declaration no later than the 15th of each month, using a standard form provided by the Tax authorities including the number of passenger who travelled overseas from Mauritania. Such declaration along with the tax payment is made out the Tax treasury. Failure to provide such declaration within the prescribed deadlines, an automatic taxation will be assessed based on the number of seats the airline companie offer according to their airplane capacity. The above mentioned tax is subjected to penalties pursuing to article 478 of the present code.

Section III

COMMON PROVISIONS

ART 250. - The rules relating to the tax on turnover which are not inconsistent with the provisions of this chapter apply to the indirect taxes referred to in articles 238 to 249.

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TITLE 3

REGISTRATION AND STAMP DUTIES

CHAPTER I

REGISTRATION FEES

Section I

GENERALITIES

I. Fixed Duties and Proportional Duties

ART 251. - Registration taxes are either fixed or proportional, depending on the nature of the actes and deeds concerned ART 252. - The receipt of the duties is set according to the external form of the act or the content of their provisions, without any concern to their validity, or to the causes of their subsequent cancellation or annulment, except where otherwise provided by this code. ART 253.-Unless otherwise provided in the specific provisions, the fixed tax applies to those acts which do not record either a transfer of property, usufruct or of rights of possession of movable or real property, nor an allocation of contract nor order to pay costs or orders as to value, nor contribution to a company, nor division of movable or real property, and, generally, applies to any other acts, even those exempt from registration, which are voluntarily presented for the paper work. ART 254. - Subject to the exception referred to in the previous article, the proportional tax applies to transfers inter vivos of property, usufruct or rights of possession of movable or immovable property, orders to pay costs or orders as

to value, as well as acts recording a contribution to a company, a division of movable or real property, a contract. Such taxes are calculated on the price or stated value ART 255. - Amendments and agreements to which a condition precedent applies are registered at the fixed rate of 200 UM. When the condition precedent is satisfied, the applicable fiscal regime and the taxable values are determined as at the date of such satisfaction. However, the fixed rate paid on the original acts cannot be deducted from the taxes finally payable.

II. Dependent and Independent Provisions

ART 256. - When an acts relates to two transactions is taxed differently, but which, by reason of their correlation are not of a nature to allow the plurality of taxes. The provision which is used for the calculation of tax is the one that gives rise to the highest rate ART 257. - Nevertheless, when in a particular inst acts , either civil, judicial or extra-judicial, there are several independent provisions or provisions not necessarily deriving from one another, for each of them, and according to their nature, a specific tax is payable.

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The amount is determined by the article of this code in which the provision is classified, or which it relates to. 258. - Are exempt from the plurality referred in the previous article provisions which, in civil, judicial or extra-judicial acts, are independent and only give rise to fixed taxes. Only the highest fixed tax is to be paid. When an act contains several independent provisions which give rise to proportional taxes and others to fixed taxes, no tax is payable on this last one provisions, except the highest fixed rate as the minimum amount payable, if the amount of proportional taxes payable is lower. III. Registration of Deeds, Copyright and

Patents ART 259. - Civil and extra-judicial acts are registered on the minutes, patents or originals. ART 260. - All judicial acts related to civil matters are also submitted for registration on the minutes or originals. ART 261. - No registration taxes are payable for certificates, copies or the sending of acts to be registered on the minutes or originals.

IV. Minimum Levying ART 262. - Subject to the provisions of article 263, the minimum proportional payable tax is set at 200 UM. ART 263. - The minimum tax payable for judgments and orders is determined in accordance with articles 278 and 279 ART 264. - In addition, the minimum tax payable is set at 200 UM.

V. Payment Method of the Proportional

Duty ART 265. - For the payment of proportional taxes, the tax base is rounded down to the nearest hundred ouguiyas. ART 266. - When the payment of amounts received by the Registration Department shows fractions of ouguiyas, the amounts resulting from such payment are rounded up or down to the nearest ouguiya. When the payment relates to several accounts, lines, items, or headings open in the accounts where the registration is received, the rounding up or down to the nearest ouguiya applies to each amount being the subject of a separate imputation.

Section II

DEADLINES FOR THE REGISTRATION OF DEEDS AND DECLARATIONS

I. Public and Private signed Deeds

ART 267. - The following shall be registered within one month of their date 1. notaries acts 2. Settlements by arbitration in the case of the enforcement of an award, summary order as well as judgments and court orders, of first and last resort, in civil matters, commercial or administrative matters, issued by the jurisdictions of modern law and containing provisions which are legally binding in all matters. 3. Writs and any other acts bailiffs; 4. Acts in regards to a transfer of property of usufruct of immovable property, a business, or goodwill, or a transfer of rights to a lease or a promise of lease related to all or part of a property; 5. acts related to a mortgage; 6. Acts of shares transfers, founder's shares or partnership shares or transfers of interests of partners in companies whose capital is not divided into shares. 7. acts affecting changes or transfer of the use of movable and real property;

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8. Any acts recording the formation, extension, modification or dissolution of a company, the increase, depreciation or reduction of its capital; 9. Acts stating a division of movable or real property, on any account whatsoever; 10. Adjudications to a rebate and contracts referred to in article 292. ART 268. – The deadline for the registration of the acts listed in paragraph 10 of article 267, liable to taxation, before execution, are subject to the approval of the superior authority, only runs from the date the decision is received by the public servant who shall be the depository of the minute or the original. Such public servant shall mention such date in the margin of the acts by a duly signed attestation.

II. Parties selling Property or Realtors ART 269. - Any deeds, promise to sale, acts conveying property and, generally, any acts relating to the profession of intermediary for the purchase and sale of properties or businesses, are subject to registration within ten days of their execution date; the provisions of article 267 are not departed from in the case where such act were prepared by a notary.

III. Other Deeds

ART 270. - No other strict period is prescribed for the registration of acts other than those referred to in articles 267 and 269.

IV. Verbal Transfers ART 271. - In the absence of acts, the transfers mentionned in article 267, paragraph 4, as well as the transfers of partners' shares in companies whose capital is not divided into shares, are the subject during the month of taking possession, of detailed declarations and estimates based on special formulat provided by the Tax Department.

V. Declaration of Verbal Transfer for

leases on Buildings or Businesses ART 272. - 1. 1. Verbal leases of real property or businesses as well as their legal renewals or contractual renewals are the subject of detailed declarations and estimations which are filed within the first three months of each year at the Registration office in Nouakchott. The declarations are made using special formula provided by the Administration. They apply to the period between January 1st and December 31 st of the previous year. 2. The declarations are signed by the person who is the owner of the rented property or business as January 1st, regardless of ownership changes occurred during the course of the year. In the case of sub-lease, a declaration is signed, in addition, by each of the sub-lessors. 3. The party making the declaration is liable for the payment of the taxes due, although it may have recourse against the leaseholder. Nevertheless, the parties are jointly liable for the recovery of the tax itself.

VI. Common Provisions. ART 273. -– The day of the date of the act is not counted in the periods prescribed for registration. ART 274. - – The registration office is open to the public every day, except Sundays, public holidays and the day set for the monthly closing of accounts. The date of such monthly closing is set as followed:

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1 – For months other than the month of December, on the last working day before the 26th; 2 - . For the month of December, on the last working day of that month Opening and closing days and times are posted at the [front] door of the office. ART 275. - The periods set by this code for the registration of acts, as well as for the payment of all taxes of which the recovery falls to the Registration office, or for the submission of the declarations it relates to, are extended to the first following working day when the period expires on one of the closing days as set out by article 274.

Section III

REGISTRATION OFFICE FOR DEEDS AND TRANSFERS

ART 276. - 1. Notaries may have their acts registered in the offices of the dwelling place area. 2. Clerks of court and the secretaries of central and regional administrations may register the acts they are mandated to submit to such registration at the office in the area where they carry out their activity. Allocations of administrative contracts subjected to the approval of the higher authority may be submitted for the of registration at the office of the area where the public servant who is the depository of the minute or original lives. 3. The registration of acts privately signed and under an obligation to be submitted for registration may take place at the dwelling place of either of the contracting parties, for acts reporting the transfer of real property, businesses or goodwill, as well as for transfers of a right to a lease over all or part of a property.

4. Declarations of oral amendments, of businesses or of goodwill, as well as the verbal declarations of transfer of a right to lease or of the benefit of a promise to lease related in part or all of a property, may be made at the office where the property is located. 5. Acts privately signed, other than those referred to in article 276 and acts drawn up in foreign countries may be registered in any office.

IV-RATES AND APPLICATIONS

I. Fixed Duties ART 277. - – The following are registered at the fixed rate of 200 UM: 1. Property Title. 2. Transfers, subrogations, re-conveyances and terminations of leases of property of any nature; 3. Writs and any other acts of bailiffs, when they do not contain any provision giving rise to proportional taxes; 4. Summary order when such order cannot give rise to the proportional tax; 5. Acts and writings whose purpose is the constitution of companies for the sole purpose of studies or research, excluding any exploitation operation, on condition that such acts and writings do not effect any transfer of movable or real property between the associates and other persons; 6. Inventories and evaluations for auctions of movables, titles and documents. A tax is due for each auction; 7. The closing of inventories; 8. Acts related to mortgages loan;

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9. Acts of dissolution of companies which do not effect any transfer of movable or real property between the associates and other persons; 10. Adjudications at auction of immovable property where a previous bidder has defaulted, when the price does not go over the one for the previous adjudication and if this last one was registered; 11. And generally, any acts which are not taxed under any other article of this code and which cannot give rise to the proportional tax. ART 278. – Decision from the court of first instance of first or last resort, issued from modern law jurisdictions and which contain binding provisions in civil, commercial or administrative matters, are registered at the fixed rate of 300 UM, when such provisions cannot give rise to proportional taxes or give rise to less than 300 UM in proportional taxes. ART 279. – Court orders from the Supreme Court in civil, commercial or administrative matters are registered at the fixed tax rate of 1 000 UM. ART 280. - – Arbitration decisions in the case of the foreign judgement order, give rise to the taxes applicable to judgements and orders according to the level of jurisdiction usually competent to hear the matter, either at first or last apeal. The foreign judgement order is registered free of charge.

II. Proportional Duties

A. Shares and Interest Shares -

Transfers ART 281. – Acts affecting transfers of shares, founders' shares or partnership shares or transfers of interests in

companies whose capital is not divided into shares, are taxed at 2. 5 %. The tax is based on the price expressed, plus expenses. ART 282. - The transfers of initial shares and founders' shares effected during the period of non-negotiability are considered, for the purposes of this chapter, as having as their purpose the property in kind represented by the transferred titles. For the collection of the tax, each element of capital contribution is valued separately and the numbers of the shares attributed as payment for each of them is indicated. Failing such evaluations and indications, the taxes are payable at the rate applicable to real property. The previous provisions apply to the transfer of interests in companies whose capital is not divided into shares, when such transfers occur within three years of the final realisation of the capital contribution made to the company. In all cases where the transfer of shares or of interests gives rise to the tax on transfers pursuant to this article, the outright assignment, upon dissolution of the company, of the property represented by the titles being transferred only gives rise to the tax on transfers if the assignment is made to an individual other than the title holder.

B. Leases ART 283- Are subject to a 1% tax payable by the tenant and 2% by the owner Leases, sub-leases and extensions of term or real estate leases, turnover and other movable property. Leases of land registration are only subject to the 1% tax. ART 284. - Subject to the provisions of article 511, the tax is payable on the cumulated price of all the years.

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However, unless the parties express a contrary desire, the amount of the tax is split up: 1. In the case of a fixed term lease, in as many payments as there are annual periods during the term of the lease; 2. In the case of a periodic lease, in as many payments as there are periods in the lease. Each payment represents the tax related to the stated rent and rental charges for the period to which it applies, even where the parties, if the lease is a period lease and if the period exceeds one year, claim the division set out above. Only the tax relating to the first annual period of the lease is discharged upon registration of the act or declaration; the tax related to the following periods is paid during the month of the beginning of the new period, by the owner or tenant, jointly responsible for the payment It is paid at the applicable rate at the beginning of the period. ART 285. - The value used as a taxable base is determined by the annual price stated, plus the expenses imposed upon the tenant. If the lease or the rent price is stated payable in nature or based on certain products, the tax is payable according to the value of the produtcs assessed in the day of the contract, determined by the estimating declaration from the parties. If the tax amount is divided, the estimate is only use for the first period. For every following period, the parties are mandated to submit a new estimated declaration of the products value on the day of the beginning of the new period, which will therefore be used as a taxable base. ART 286. - Any transfer of a right to a lease or of the benefit of a promise of a lease relating to the whole or part of a property, regardless of the title given to it

by the parties, whether it is referred to as a transfer of the door-step of a shop, a departure allowance or otherwise, is subject to a registration tax of 15%. Such tax is paid on the amount of the sum or allowance stipulated by the transferor to be for his benefit or on the actual market value of the right transfered if the agreement does not contain any express stipulation of a sum or allowance for the benefit of the transferor or if the stipulated sum or allowance is less than the real market value of the right transfered. The tax received in that manner is independent from that which may be received for the enjoyment of leased property. The provisions of this article apply to all agreements having the effect of terminating a lease related to all or part of a property to replace it with a new lease in favour of a third party.

C. Swapping of Buildings

ART 287. - The swapping of immovable property is subject to a tax of 2.5%. When the properties swapped are of the same value, the tax is payable on only one lot. If the properties swapped are of unequal value or it is provided that one of the parties making the swap is liable for a balance in cash, the tax is paid at the rate of 2.5 % of the value of the cheapest lot and at the rate which applies to the transfers of properties for valuable consideration on the balance in cash or on the appreciated added-value. The properties are valued on the basis of their real value as the date of transfer.

D. Transfer of Business

ART 288. - The transfer of ownership of a business or of goodwill for valuable consideration is subject to a 8% tax.

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The mentionned tax is paid as : 1. On the price of the elements of intangible property, equipment and furniture used for the operation of the business 2. On the real value of such elements if it exceeds the declared price. Equipment and furniture give rise to a detailed estimated inventory in a distinguish manner of which two copies shall be submitted and kept in the office where such registration usual formalities is required. The product stock is subject only to a 2% tax, only if it is mentionned, in regards to, a particular price and that it be will valued separately item by item, two copies of shall be submitted and kept in the office where such registration usual formalities is required ART 289. - – The provisions of this code relating to transfers of businesses or goodwill for valuable consideration apply to any agreement for valuable consideration having the ability to enable any person to practise a profession, a duty or employment held by a previous title holder, even when such agreement reached with the titleholder or its successors does not include a transfer of goodwill. The taxes are due on all the amounts for which the head of the agreement, whatever his denomination, imposes on the successor as well as on all the expenses falling upon him on the same mather.

E. Court Decisions – Tax on Sentences ART 290 During a period of five years, the court orders in chambers, the judgements and orders in civil, commercial and administrative matters issued from right jurisdictions with respect to the recovery of bank debts, are exempt from registration taxes and are registered free of charge.

Orders of judges in chambers, judgements and orders in civil, commercial or administrative matters issued from modern law jurisdictions, are taxable at the rate of 2% on the amount of the sentences pronounced. When the proportional tax has been paid on a judgement given by default, the tax on any appeal judgement which may intervene applies only to the additional sentence. The same applies to judgements and orders given on appeal. As an exception and during a period of three years from January 1st, 1995, the court order of judges in chambers, the judgements and court orders in civil, commercial and administrative matters issued from right jurisdictions with respect to the recovery of bank debts, are exempt from registration taxes and are registered free of charge. ART 291. - In the case provided for in the 3rd paragraph of article 516, the parties not sentenced to payment may have the decisions registered by paying the fixed tax applicable to the registration of judgements not subject to the proportional tax. For this purpose, the clerk of court shall certify in the margin of the minute that the formality is required by the party not sentenced to payment. The decision so registered at the fixed tax rate is said to be unregistered with respect to the parties sentenced to payment, who cannot lift the decision without paying the additional taxes. The obligations and penalties related to the clerks of court in matters of delivery or sending are applicable. The fixed tax paid in accordance with the first paragraph of this article is charged to the taxes due by the parties sentenced to payment.

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F. Markets

ART 292. – Acts reporting the adjudication towards rebate and contracts allocations for contructions, repairs, maintenance, works, studies and supply of services or of goods or other movable objects, the price of which is to be paid by the State, territorial communities or public establishments, are subject to a 1% tax. The tax is paid on the price expressed or on the valuation of all of the works and supplies imposed on the contractor. ART 293. - The proportional tax payable on allocations of contracts is automatically divided : 1. In the event of a fixed term allocation of contract, in as many payments as there are three-yearly periods during the term of the contract; 2. In the event of an allocation of periodic contracts, in as many payments as there are periods. If the allocation is of periodic contracts and if the period exceeds three years, the division into three-year periods may be required for each period. Each payment represents the tax relating to the services stipulated for the period to which it applies. Only the tax relating to the first period of allocation is paid at the time of registration of the act, the tax relating to each of the following periods is paid during the month of the commencement of the new period, by either of the parties. It is paid at the rate applicable at the beginning of the period.

G. Inter Vivos Free Transfers ART 294. - Gifts inter vivos of immovable property, cash turnover of businesses or of property referred to in article 281 are liable to the proportional taxes applicable to

the transfer for valuable consideration of the said property. The taxes are calculated on the value of the given property, determined by the parties in a detailed valuation declaration, without deduction of expenses.

H. Shares

ART 295. - – The division of movable or personal property between joint owners, joint heirs and joint partners, on any account whatsoever, provided that it is justified, is subject to a tax of 0.25% to be paid on the amount of the net asset divided. In the case of a balance in cash or added value, the tax due is paid at the fixed rate applicable to sales.

I. Companies ART 296. - Subject to the provisions of article 297, the acts of creation and extension of term of companies which do not contain a transfer of movable or personal property between associates partners or other individuals persons, are subject to a tax, on the total amount of movable or immovable contributions deduction made on the liabilities towards a tax at the rate of 0.25 % In the case of increase in capital, shall be taken into account, the initial capital and the previous increases subject to the same rate. personal property contributions made to associations are subject to the same taxes as the contributions to civil or commercial companies. The tax imposed pursuant to paragraph 1 of this article is reduced by half for the acts referred to in articles 298 and 299. ART 297. - When a company document reporting a contribution of personal property does not give rise, by reason of such contribution, to the tax on transfers inter vivos for valuable consideration, the

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registration tax due on the capital value of such contribution is increased by 2%. ART 298. - acts of merger of joint stock companies, partnerships limited by shares or limited liability companies, are exempt from the tax imposed by article 297, whether the merger takes place by merging or through the creation of a new company. The taking over by the new company of all or part of the liabilities of the old companies only gives rise to the tax set out in article 277. The profits of the previous provisions are subjected to the condition that the buying company or the new company be composed of according to the Mauritanian law and have its registered address in Mauritania. ART 299. - For the purpose of the first two paragraphs of article 298, the following are assimilated to a company merger: acts which report the contribution by a joint stock company, a partnership limited by shares or a limited liability company, to another company constituted in one of those forms, of part of its assets, on condition that the company benefiting from the contribution is constituted in accordance with Mauritanian law and has its registered office in Mauritania. ART 300. - 1. The operation whereby a joint stock company, a partnership limited by shares or a limited liability company, contributes the whole of its assets to two or several companies constituted for that purpose, in one of those forms, is submitted to the regime of company mergers, only under the following conditions : - the companies benefiting from the contributions are all constituted in accordance with Mauritanian law and have their registered office in Mauritania; -the contributions result from agreements which take effect on the same date for each of the different companies who are

the beneficiaries, and result, as soon as they take effect, in the immediate dissolution of the contributing company. 2. The assimilation set out in paragraph 1 above applies to the contributions falling into the provisions of article 299. ART 301. - The tax imposed pursuant to article 296 is paid at the rate of 5% when it applies: 1.to acts increasing, by means of the incorporation of profits, reserves or provisions of any kind, the capital of any companies referred to in article 7; 2. to the acts of merger of the concerned companies. The tax on company contributions remains payable at the rate set out in article 296 when the profits, reserves or provisions incorporated into the capital have already bare the tax on industrial and commercial gains and the general tax on income. For act of merger, the proportional tax on company contributions is only paid at the rate of 5% only on the part of the assets contributed by the merged company or companies which exceeds the capital called-up and not reimbursed capital of these companies. ART 302. - The following are registered at the fixed rate of 200 UM: 1. Acts having as their purpose the constitution of the construction companies referred to in the order of February 23rd, 1949, which tend to regulate the status of joint ownership of buildings divided into apartments and which do not effect any transfer of movable or personal property between associates or other individuals.

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2. Acts pursuant to which the companies referred to in paragraph 1 above make to their members through the division in kind with an outright title, an exclusive transfer of property in the portion of the building they have built and for which they have authority on, on condition that the transfer occurs within seven years of the constitution of the said companies. Such transfer does not give rise, in that case, to any taxes payable to the Treasury. ART 303. - The payment of the proportional taxes provided for in articles 296, 297 and 301, when they exceed 200 000 UM, may, at the request of the company owing them, which request is written and signed at the bottom of the acts, be paid in three equal annual instalments, without interest. The first instalment is the only one paid at the time of registration of the act. The other instalments shall be paid within 30 days of the end of each annual instalment. The request for payment by instalments is only allowable if it is made along with an offer of sufficient guarantees. Such guarantees consist of either mortgages of registered buildings, or securities over businesses or movable property. Their value shall be at least equal to the amount of deferred taxes. They shall be constituted within a maximum period of six months from the date of registration of the act. The sureties provided for above may be replaced by a personal undertaking by one or several banking establishments approved by the autohorities, to repay the deferred taxes. In regaurds to the companies granted the benefit of the long term fiscal regime, the payment of the proportional taxes provided for in articles 296, 297 and 301 may,

whatever the amount of such taxes, be paid in five equal instalments. The first is the only one paid at the time of registration of the act. The others are payable, without interest, year after year, and shall be paid within 30 days of the end of each annual instalment. The payment of such instalments shall be guaranteed in the conditions provided for in the 4th, 5th and 6th paragraphs of this article.

J. Sales and Other Contracts

Transferring Ownership of Fixed Assets via valuable Considerations

ART 304. 1. The auction, sale, resale, transfers and any other civil and judicial acts transferring the ownership or usufruct of immovable property, for valuable consideration, are subject to a 2% tax. As an exception and for a period of three years from January 1st, 1995, the transfers of property, immovables, acquired by banks, following judgements and court orders handed out in their favour as compensation for debts towards them, are subject to a rebate of 1% tax. The tax is paid: - on the price expressed plus charges

assumed by the transferee, although they would normally be incurred by the transferor, as well as all allowances stipulated for the benefit of the transferor, on whatever account and for whatever purpose;

- or on the real value of the property transferred when it exceeds the declared price, in accordance with the previous paragraph.

When the transfer relates to both immovables by nature and to immovables by destination, they shall be given a specific price and a detailed designation. 2. The sale of immovables land are subjected to the taxes provided for in paragraph 1 above.

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ART 305. - When an acts transferring ownership, usufruct includes movables and immovables, the registration tax is paid on the total price, at the rate applicable to immovables, unless a specific price is mentioned for the personal property and that it is itemised and estimated article by article in the contract. ART 306. -– acts transferring the ownership, usufruct or enjoyment of property located situated abroad are subject to a 1% tax. Such tax is paid on the price stated, plus the expenses and allowances provided in article 304. ART 307. - Public sales of movable property are subject to an 8% tax rate.

Section V

OBLIGATIONS OF OFFICIALS,

GOVERNMENT EMPLOYEES AND THIRD PARTIES

I. Resulting Deeds

ART 308. - The notaries, court clerks, defence lawyers and other public officers as well as the administrative authorities, cannot prepare or have prepared an act by virtue of or in consequence of an act which must be registered on the minute or original, annex it to their minutes, receive it for escrow, deliver it in the form of a patent, certificates,copie or expedition, before the original act has been registered, while the period for registration has not expired yet. Notaries may nevertheless prepare acts by virtue of or in consequence of act for which the registration period has not yet expired, under the condition that each of those act is appended to the one in which it is mentioned, that it is submitted at the same time to the formality of registration and that the notaries are personally responsible, not only for the registration taxes and stamp duty, but also for any fines such act may issue.

ART 309. - Any notary or clerk of court is prohibited from receiving an acts for escrow purposes without drafting an act of deposit. Are allowed wills provided to notaries by the testators. ART 310. - The receipt of taxes is mentioned by a literal and full transcription of the receipt, on all duplicates of public, civil or judicial act, which must be registered on the minutes. The same mention is made in the minutes of public, civil, judicial or extra-judicial act which are made according to act privately signed or signed abroad and which are subjected to registration. ART 311. - In the event of a false mention of registration, either in a minute, or in a draft, the offender will be sued by public ministry for the reporting of the forgery by the Registration Service. ART 312. - Any act of sub-lease, subrogation, transfer or rétrocession of a lease should contain the literal reproduction of the registration mention on the lease transferred partly or entirely. ART 313. - Where a sentence is pronounced according to a registered act, the judgement mentions and announces the amount of tax paid, the date of payment and the office where it was paid; in the event of omission and in the case of an act subjected to the formality within a limited time period, the competent agent demands the tax if the acts was not registered at his office, except if there is restitution within the prescribed period if the registration of the act with respect to which the judgement is pronounced is justified.

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II. Public Deeds – Deposit Slip

ART 314. - Notaries, bailiffs and court clerks must, each time they provide an act , judgements or court orders for registration, to submit at the office a summary of such act, judgements or court orders, prepared by them in duplicate on the printed form provided by the authorities . Failure to do so results in the refusal of registration.

III. Private Deeds

ART 315. - The parties preparing a private act to be registered within a prescribed period shall prepare a duplicate on stamped paper carrying the same signatures as the act itself and which copy is kept at the Registration office where the formality is required. A copy or extract of the duplicate lodged with the office in the conditions set out in article 591 may be obtained

IV. Good faith Estimate Statements – Amounts of Duties to be paid to the

Treasury ART 316. – Expenses estimate prepared by defence lawyers, bailiffs, court clerks, notaries shall clearly show, in a special column and for each disbursement, the amount of taxes of any nature paid to the Treasury.

V. Estate and Business Agents – Particular Obligations

ART 317. - Any individuals or legal entities carrying out intermediary operations for the purchase, sale or rental of buildings or businesses or who, on a regular basis, buys in his or its name such property of which he or it becomes the owner, with the intend to resale, must :

1. Declare the operations within the period of one month from the beginning of the operations metionned above, at the registration office. 2. Keep two logbook, not subject to stamping, showing on a daily basis, without blanks or double spacing, and in numerical order, all the orders, promises of sale, act transferring property, rentals, and generally, any act relating to his or its profession as an intermediary or his or its capacity as owner; one of the logbook is assigned to the intermediary operations; the other to operations carried out in term of an owner. 3. For the exercise of the right of communication of Tax agents, the provisions of article 585 are to be complied with. Any breach of the provisions of paragraphs 1 and 2 of this article is punishable by fine of 2 000 UM. VI. Directories of Notaries, Bailiffs and

Registrars

ART 318. - Notaries, bailiffs and court clerks keep a logbook with columns in which they record, on a daily basis, without blanks or double spacing and in numerical order: 1. For notaries, all acts and contracts they receive, even those contracts delivered patented already. 2. For bailiffs, all act and writs of their ministry department. 3. For clerks of court, all act and court order which must be registered on the minutes according to this code. ART 319. - Each item in the logbook include : 1. its number; 2. the date of the act 3. its nature

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4. the first name and last name of the parties as well as their dwelling place 5. a description of the property, their status and their price, when it is about act for which the purpose is the ownership, usufruct or enjoyment of immovable property 6. The relation for the registration la relation de l'enregistrement. ART 320. - Notaries, bailiffs and court clerks provide every three months their logbook records to the Registration Officer who stamps them and indicates in the stamping the number of act recorded. Such submission occurs in the first ten days of each of the months of January, April, July and October. ART 321. - Independently from the presentation prescribed by the previous article, notaries, bailiffs and clerks of court must are show their logbook records upon the request of the Tax agents who go to their offices to check the logbook. ART 322. - The logbook record are assessed and initialled by the President or if not available by a Tribunal Judge of first instance in their area of residence. ART 323. - Independently from the obligations they are concerned with according to article 318 and subsequent articles, court clerks keep an unstamped register, assessed and initialled by the President of the Tribunal of first instance, of the logbook record in columns in which they record on a daily basis, without blanks or double spacing and in numerical order, all the judgements and court orders which are exempt from stamping and registration.

Each item in the record book shows: 1. its number; 2. the date of the act 3. its nature 4. the first name and last name of the parties as well as their dwelling place, each stated act has to be appended its own order number. The clerks of court must record in such record book No. 3 bulletins of any criminal records delivered by them. ART 324. - The court clerks provide such record book to the Registration Officer who initial it and indicates in his stamp the number of the last act recorded. Such presentation takes place on the 16th of each month. If such day is an official closing day, the stamp is affixed the following day.

Section VI

PENALTIES

I. General Provisions ART 325. - 1. Subject to the provisions of articles 326 to 330, any breach of the provisions of this chapter, in particular any delay, either in the registration of the acts, declarations and writings that are required by such provisions to be registered, or the carrying out of the obligations that they impose, or in the payment of the taxes they relate to, any inaccuracy, omission or insufficiency, give rise to, when the breach has not cause any damages to the Treasury, to the payment of an additional tax equal to the amount of taxes and of any additional amounts payable, which shall not be less than 200 UM. Any other breach, which has not caused a failure of payment of all or part of the tax, is punishable by fine of 200 UM.

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2. Notaries, bailiffs and court clerks and the administrative authorities who have neglected to submit for registration, within the deadline period, the act they mare mandated to present for such formality, are personally liable for the fine mentionned in the previous chapter 1. They are, in addition, mandated to pay the taxes, except for their right of recourse against the parties for those taxes only. 3- Subject to the provisions of paragraph 2, persons who are, in the eyes of the Treasury, jointly liable for the tax payment, are also jointly liable for the payment of the fine and any additional taxes. ART 326. - – As an exception to the provisions of the preceding article, when the taxes relating to court order which must be registered on the minutes and to administrative act, have not been assigned to the court clerks and administrative authorities within the prescribed period for Registration, their recovery is pursued against the parties who are liable, amongst other things, for the penalty of additional tax. For that purpose, the clerks of court and administrative authorities provide to the registration officer, within the ten days following the expiry of the period, extracts of the act and court orders certified by them for which taxes have not been paid by the parties, with a fine of 200 UM for each act and court orders, and shall be, in addition, personally liable for the payment of the additional simple taxes. They are provided with a receipt, on a loose paper, for such certificate. Such receipt is recorded in their record book.

II. Concealment ART 327. - 1. Any agreement having the purpose of concealing part of the price sale of a building or of a transfer of a business or goodwill, or of the whole or part of any balance payable in exchange or division

comprising immovable property, a business or goodwill, is void and of null effect. 2. Any concealment in the price of the sale of a building, of the transfer of a business or of goodwill, or in the whole or part of any balance payable in a swap or division is punished by a fine equal to twice the payable taxe. Such fine is paid jointly by the parties, even if it is split between themselves in equal shares. 3. The notary who receives an act of sale, exchange or division is under an obligation to read this article to the parties, and is liable for a fine of 200 UM for a failure to do so. He shall mention such reading in the act and shall affirm that in his knowledge, the concerned act is neither amended nor modified by any letter of amendment containing an increase in the price or of the balance, or he shall incur the same penalty. ART 328. - The provisions of article 327 apply to the contracts of transfer of a right to a lease or to the benefit of a promise of lease relating to all or part of a building. ART 329. - Where it is vonlontarely admited or judicially established that the real character of the provisions of a contract or agreement has been concealed under the appearance of provisions giving rise to lower taxes, twice the amount of taxes is payable in addition. Such penalty is due jointly by all the contracting parties.

III. Deficiency

ART 330. - In the event of insufficiency as provided for in article 553, the parties pay jointly, independently from the simple tax due on the additional element estimated: 1. If the insufficiency is recognised amicably, half an additional tax. 2. In any other case, a full additional tax.

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However, no penalty is incurred when the insufficiency is less than one fifth of the price stated or of the declared value. However, no penalty is incurred when the insufficiency is less than one fifth of the price stated or of the declared value. During a period of six months from the date of completion of the formality of registration, the Administration may exercise, in favour of the Treasury, a pre-emptive right over the buildings, immovable rights related to all or part of an buildings, the price of which it considers to be insufficient, by offering to pay to the beneficiaries the amount of such price, plus one tenth. The decision to exercise the pre-emptive right is notified by notice by a bailiff.

Section VII.

SPECIAL TAX ON INSURANCE

I. Taxable Base ART 331. - Any agreement for insurance or life annuity reached with an insurance company or with any other Mauritanian or foreign insurer is, whatever the place and the date i twas concluded , subjected to an annual tax in return for the payment of which any writing which records its creation, modification or its termination by agreement, as well as any duplicates, extracts or copies that were provided, are, wherever they are or were prepared, exempt from stamp duty and registered at no cost when such formality is required. The tax is due on the total of the amounts stipulated in favour of the insurer and any additional amounts of which the concerned may benefit directly or indirectly by reason of the insured.

II. Rate

ART 332. - The rate of the tax is set at: 1. - 5 % for insurance against marine navigation risks of any nature; 2. - 10 % for insurance against river or air navigation risks of any nature; 3. - 10 % for insurance against fire 4. - 10 % for life and similar insurance, including contracts for annuities postponed for 3 years or more; 5. - 10 % for contracts for the mortgage of property for a life annuity, including contracts for annuities postponed for 3 years or more; 6. -10 % for insurance for the exportation of credit 7. - 10 % for all other insurance Fire risks covered by insurance having as its purpose transportation risks are included in the risks referred to in point 1 and point 6 of this article, depending on whether water or air transport, or land transport is dealt with.

III. Exemptions

ART 333. - The following are exonerated from the tax : 1. Re-insurance 2. Insurance which, pursuant to exceptional provisions, enjoys an exoneration from stamp duty and registration taxes, in particular insurance against work accidents, insurance taken out by companies and organisations of a co-operative character which have been approved, in accordance with the provisions of the law of 18 July 1967 on the status of co-operation, act affecting labor unions.

IV. Tax Waiving

ART 334. - The following are exempt from the tax: 1. Contracts for life insurance or for the mortgage of property against payment of a life annuity, enrolled for by individuals with permanent dwelling place in Mauritania.

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2. Any other contracts, to the extent that the risk is located outside of Mauritania or does not relate to an industrial, commercial or agricultural establishment located in Mauritania.

V. Tax Settlement and Payment ART 335. - For agreements made with Mauritanian insurers or with foreign insurers having a legal branch in Mauritania, the tax is due to the Treasury's account by the insurer or its legal branch representative or by the main insurer of the policy, if the contract is subscribed by several insurers, and paid by him to the registration office, within the 15 days following each quarter of the calendar year. It is paid based on the results obtained by deducting from the total amounts stated in favour of the insurer and their miscaleneous amount received received during the previous quarter, the total amounts stated in favour of the insurer and their expenses reimbursed during the same quarter. ART 336. - For agreements made with foreign insurers, the accredited legal representative, according to the the provisions of the law of 27 June 1963 is personally liable for the payment of the tax and any penalties, relating to the control of the State over insurance organisations and operations. ART 337. - For agreements made with foreign insurers not having a legal branch in Mauritania, with no risk of penalties according to the provisions in regards to the law of June 27th, 1963 related to the control of the State over insurance organisations and operations, the tax is paid out to registration office by the insurered party in the month of deadline for the stated amount in favour of the insurer, by the mean of a declaration including the date, the nature, the lenghnt of the agreement,

the name of the insurer, the amount of the asset insured and those of the amount stated in favour of the insurer and miscaleneous expenses.

VI. Joint Liability of Taxpayers ART 338. - In all cases, insurers, their legal representative, their agents, directors of establishments or branches or their representatives, brokers and intermediaries and the insured are jointly liable for the payment of the tax and any penalties.

VII. Obligations of Insurers ART 339. – Insurers, brokers and all other intermediaries are under an obligation make a declaration at the Registration office, before they commence their operations, stating the nature of such operations and the name of the director of the company or of the legal representative.

VIII. Penalties

ART 340. - Any delay in the payment of the tax, any inaccuracy, omission or insufficiency and any other breach leading to a loss or damages to the Treasury gives rise to the payment of an additional tax equal to the tax or remainder of the tax payable but it shall not be less than 200 UM. Nevertheless, when it falls to an an insurer who has subsribe to a declaration pursuant to article 339, a simple delay in payment gives rise to the charge of interest on overdue payments on the amounts payable at the rate of 1% per month, any portion of a month being counted as a full month. Breaches of article 339 are punished by fine of 2000 UM.

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CHAPTER II

STAMP DUTY

Section I

GENERAL PROVISIONS

I. Collection Methods

ART 341. Stamp duty is paid by the affixing of fiscal stamps on the writings or documents subjected to taxation. ART 342. - The stamps are immediately cancelled by the affixing in ink, across the stamp, of the signature of the taxpayers or of any one of them and of the date of the cancellation. This signature may be replaced with the affixing of a seal in oil based ink showing the name and company status of the taxpayer or the name of the Service in charge of the issuing of the document subjected to stamp duty. The cancellation shall be done so that part of the signature and the date or seal appears on the movable stamp and part on the paper to which the stamp is affixed. ART 343. - Writings or documents to which the stamp was affixed or cancelled after use or not within the prescribed conditions, or upon which an already used stamp was affixed, are considered to be unstamped. ART 344. - The Finance Minister may authorise the taxpayers, either to pay the duty on statements or estimates, or to replace the pictures (figurines) with marks printed by special machines which have been submitted to his prior approval.

Taxpayers authorised to pay stamp duty according to size based on a statement, are under an obligation to pay, within 15 days following each quarter of the calendar year, the amount of stamp duty due. The payment shall be accompanied by a statement showing the number of notes issued with respect to the quarter under consideration, as well as the amount of duty due. Any delay in the payment of the tax, any inaccuracy, omission or insufficiency, any other breach leading to loss or damages to the Treasury, gives rise to the payment of a tax equal to the tax or the remainder of the tax payable. ART 345. - – A unique form of fiscal stamp is created for the payment of stamp duty in accordance with this code and, in general, for all taxes or contributions the payment of which is authorised by the affixing of stamps. ART 346. - Each stamp clearly shows its price and the caption words "Islamic Republic of Mauritania".

II. Parties liable to the Duties ART 347. – Without lack of compliance with the special provisions of this code, the following are jointly liable for the payment of stamp duty and fines: 1. All signing parties, for bilateral contracts 2. Lenders and borrowers, for loan in any king. 3. Ministerial officers who have received or prepared unstamped acts

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ART 348. - The stamping of any acts between the State and private individuals to the expenses of this last one. III. Various Prescriptions and Prohibitions ART 349. - No individuals are allowed the selling of fiscal stamps unless authorised by the Administration. Nevertheless, the officers of the Treasury, special agents, postmasters or managers of post offices and customs agents are aloowed to sell fiscal stamps. ART 350. - Notaries, bailiffs, clerks of court, lawyers for the defence and experts are prohibited from acting upon, and public administrations from giving, an order in relation to an act or register to which the prescribed stamp has not been affixed. Further more, no judge or public officer may assess and initial a register subjected to stamping if the pages of the register are not stamped. ART 351. - Where a title, book, slip or any other act subjected to stamping and which is unregistered, is mentioned in a public, judicial or extrajudicial act and does not have to be presented again upon its the registration, the public or ministerial officer is under an obligation to expressly state in the act whether the prescribed stamp has been affixed to the title and to state the amount of stamp duty paid. In case of an omission, the notaries, defense lawyers, court clerks, bailiffs and other public officers are punishable by fine of 200 UM for each breach. ART 352. - Registration officials are also prohibited from registering any act without the prescribed affixed stamp.

IV. Penalties

ART 353. - Unless otherwise stated, any breach of the provisions of this code related to stamp duty as well as to the texts related to its application, is punishable by fine of 200 UM, when it has not lead to the failure to pay the duty within the taxation deadline. In the opposite case, the breach is punishable by fine equal to the amount of the duty payable, and shall not be less than 200 UM. ART 354. - Those who have knowingly used, sold or attempted to sell fiscal stamps which have already been used are prosecuted before the criminal jurisdiction, and punishable by a sentence of ten days to three months imprisonment or a fine of 2 000 to 50 000 UM or both fines. Article 463 of the penal Code may be applied. The provisions of this article apply in all cases where a tax, duty or any other charge is payable by means of the affixing of fiscal stamps.

Section II

SIZE STAMPING

I. Deeds Subject to Size Stamping ART 355. - Are subjected to stamping minutes, originals, copies, photocopies, certificates and duplicates of the following acts and writings : 1. The acts, indexed notebooks and registers of notaries, clerks of court, bailiffs and of all public and ministerial officers. 2. Submited acts as minutes of a notary or annexed to a notarised act.

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3. Judicial act, in civil, commercial or administrative matters, issued by jurisdictions of modern law, including acts of registry and acts of arbiters and experts called before the courts or appointed by the parties pursuant to a judicial decision. 4. Any other acts and writings which must be registered pursuant to the articles of this code, or which, being exempt from registration, are voluntarily presented for the process of registration. 5. Acts concerning paiment or reimbursement of personal property 6. Powers of attorney documents. 7. Petitions, requests and statements of law presented to judicial courts or to their members, in civil, commercial or administrative matters. 8. Transport documents or tickets for seats delivered by airlines or sea transport companies. 9. Documents submitted to the administrative authorities for the certification of signatures.

10. Certified copies provided by the administrative authorities. 11. Requests for the waiver of bonds, requests for permits to occupy, requests for building permits, requests to the Administration for renewal or extension of passports. 12. Certificates of residency and nationality. 13. Occupancy authorisations, building authorisations, authorisations for the importation of weapons, authorisations to carry weapons, but only in relation to the original or the copy provided. 14. Certificates delivered by the financial 15. Requests made to the financial administrations in order to obtain certificates. 16. Complaints submitted in order to obtain a rebate on a contentious or gratuitous basis.

II. Rates

ART 356. - The rate of stamp duty on paper that taxpayers are madated to stamp before they use it is set as follows according to the size of the paper:

Height Width Rate Registration paper 0,42 0,59 1000 UM Standard Paper 0,29 0,42 500 UM Half size standard paper 0.29 0.21 1200 UM

However, the present rates are reduced by half when only one side is used for the drafting of a of a writing of less than one page in length, only if the other side be cancelled in an indelible manner by inserting the following words in the centre of the page:

"Cancelled side" "article 356 from the General Code of

Taxation" ART 356.Bis - Transport titles and seat tickets are subjected to stamp duty according to the size at the rate of 200

UM. They are paid as is, according to the provisions of article 344. ART 357. - – If the paper that the taxpayers are mandated to stamp is of a different size from those sizes set out in article 356, the stamp, with respect to the duty payable in relation to the size, is paid according to the rate which applies to the next format up.

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Section III

CHECKS AND WIRING ORDERS

ART 358. - The cheque can only be drawn on a banker, the central accounting agent of the Treasury and the principal collector in charge of the accounts for the money orders. Titles drawn and payable in Mauritania in by check option, on any individuals other than those stated in the preceding paragraph are not valid as cheques. ART 359. - The individuals issuing a cheque not showing the place of issue or without a date, the individual who inserts a false date on a cheque, the individual who writes a cheque on a individual or establishment not falling within the categories stated in the first paragraph of article 358, is punishable by fine equal to 10% of the amount for which the cheque is issued for, and such fine shall not be less than 200 UM. The same fine is personally due, without appeal, by the first endorser or the bearer of a cheque whithout the mentionning of the place of issue, or is undated, or bearing a date subsequent to the date when it was endorsed or presented. This fine is due, in addition, by anyone who pays or receives in compensation a cheque which does not indicate the place of issue or is undated. ART 360. - – Anyone who issues a cheque without sufficient available funds is punishable by the same fine. If the funds available are less than the amount of the cheque, the fine shall only be mandated based on the difference between the amount of the available funds and the amount of the cheque. The individuals and establishments on which cheques may be drawn from, who give to their creditors blank cheque forms, payable to them, shall mention on each form the name of the individual to whom such check is

made out for , or incur the fine provided for in article 353. ART 361. - The legislative provisions relating to cheques drawn in Mauritania apply to cheques drawn outside Mauritania and payable or circulating within the country.

Section IV

STAMPS FOR TRANSPORATATION CONTRACTS AND BILLS OF LADING

ART 362. - Bills of lading drawn up in the event of a transportation by sea are subjected to stamp duty, the rates and mode of payment are set as follows: 1. The 4 originals the preparation of which is prescribed are simultaneously presented for the process of stamping: the stamping of the originals which is designated to be provided to the captain is subject to a 400 UM stamp duty; the other originals are stamped free of charge; they are stamped with a marking, without a price index. 2. The 400 UM duty is reduced to 200 UM for inshore navigation expeditions from Mauritanian port to Mauritanian port. 3. The stamp duty on bills of lading created in Mauritania is discharged by the affixing of fiscal stamps. ART 363. - Bills of lading coming from abroad are submitted, before any use in Mauritania, to stamp duty equivalent to those imposed on bills of lading created in Mauritania. A minimum duty of 100 UM is paid on a bill of lading kept by the captain, representing the stamp for the bill of lading referred to above, and the stamp for the consignee of the goods.

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ART 364. - If more than four bills of lading are created, the additional bills of lading are each subject to a duty of 50 UM. Such additional duties are paid by means of fiscal stamps. They are affixed to the bill of lading held by the captain and are in equal numbers to the originals which are said to have been drafted, the number of which must be indicated on each original. Where such number has not been mentionned on the original held by the captain, a duty three times the one indicated in article 362, is paid.

Section V

CRIMINAL RECORDS STAMPS

ART 365. - Bulletin no# 3 of the criminal records delivered to the concerned indivuduals is subjected to stamp duty in the amount of 100 UM. Such duty is collected by the court clerks at the time of the submission to the said bulletins to the individuals who requested them. The taxation is carried out by clearly stating in the top left corner of the bulletin a comment containing the following words: "Stamp duty of 100 UM paid to the Treasury's account", and setting out the number under which such bulletin was recorded in the special index set up by article 323 of this code. The court clerk establishes as the 15th of each month an draft of the special index provided for by the above mentioned article 323. The draft mentionned : 1. The number of bulletins delivered during the concerned period. 2. The numbers under which such extracts are recorded in the special index; 3. The amount of duty collected.

Each extract is certified by the clerk and submitted on the 16th of each month at the registration office. The submission is made along with the payment of the duty collected according to the registration s on the draft. Any breach of the provisions of this article is punished by fine of 500 UM.

Section VI.

STAMPS FOR SPECAIL DEEDS

I. General Provisions ART 366. - The taxes for which the rates are fixed in the following articles are paid by affixing of fiscal stamps on the forms, titles or documents provided by the Administrative authorities. The stamps are affixed under the responsibility of the administrative authority in charge of the delivery and are immediately cancelled in the conditions set out in article 342.

II. Passports - Visas - Identity cards for non-résidents Aliens - Resident Card

A. Passports ART 367. - The tax on the delivery, extension or renewal of passports is set at 20 000 UM, including all paper and shipping expenses. Are exempt from the taxation passports delivered to governement employees going on a mission abroad.

B. Entry and Residence Visas ART 368. - . The amount of taxes to be collected at the time visa issuing as titles for travelling as provided for by the regulations applicable to immigration is set according to the following rates:

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- Transit visa without stopover, or

stopover of 1 to 3 days : 2.000 UM. - - Transit visa with stopover of up to 3

months: 5.000 UM. - - Short stay visa: 10.000 UM. - Long stay visa (3 months to 1 year):

15.000 UM C. Identity cards for non-résidents Aliens ART 369. - The amount of tax on the provision of an original, duplicate and the annual visa for the identity card for foreigners established by the immigration regulations is set according to the following rates: - Issuing of original: 8.000 UM. - Issuing of duplicate 4.000 UM. - Visa annuel : 2.000 UM

D. Resident Card

ART 370. - The tax on the issue and renewal of the resident card as provided for by immigration regulations is set at: 20 000 UM. Are exempt from tax paiment the following individuals : - dependent children according to the

fiscal regulations - the nationals of countries exonerated

from such taxation, Mauritanian nationals

III. National Identity Card ART 371. - The issue of the national identity card, its renewal, the issue of a duplicate are subject to the prior payment of a 100 UM tax Such tax is paid by affixing on the identity card a fiscal stamp cancelled within the conditions set out in article 342.

IV. Road Traffic Taxes

A. International certificates for

automobiles - International Driver’s License

ART 372. The tax for the issue or extension of validity of international certificates for automobiles and international driver's licences, provided by the international convention of 24 April 1926, is set at 10.000 UM. It is paid, in the conditions set out in article 342, by affixing a fiscal stamp on page no. 1 of the certificate or licence and, in the case of an extension of validity, in the margin of each mention of renewal. ART 373. - The issuing of receipts of declarations of road trafficking of automobiles and all other motor vehicles (registration cards) leads to the payment of a tax of 15 000 UM. In the case of sale of an already registered vehicle, the payment by the purchaser of the tax set out in this article takes place within the month of the sale; failing to do so leads to a fiscal fine of 10 000 UM . 2. The issue of a duplicate receipt is subject to the payment of a tax of 10 000 UM.

B. Car Inspections ART 374. - The tax of 1000 UM collected per inspection along with the periodical control of commercial vehicles is paid by affixing to statement of the inspection, fiscal stamps immediately cancelled in the conditions set out by article 342.

C. Driver’s License ART 375.- 1. The taxes collected for the issuing of driver's licences are fixed according to the following rates:

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- Category A, B or F licence: 6.000 UM. - Category C licence: : 10.000 UM. - Category D and E licence: : 12.000 UM. 2. The issuing of a duplicate driver's licence is subjected to the payment of a tax of 5.000 UM. 3. The renewal of a driver's licence gives rise to the payment of a tax of 4 000 UM. 4. The taxes set out in paragraphs 1, 2 and 3 are paid by affixing on the licence fiscal stamps immediately cancelled in the conditions set out in article 342.

V. Hunting License

ART 376. The tax related to the issuing of a licence for small hunting, the rate of which is set at 5000 UM, is collected by affixing to the licence fiscal stamps which are immediately cancelled in the conditions set out in article 342.

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CHAPTER III.

EXEMPTIONS AND SPECIAL REGIMES FOR MATTERS OF REGISTRATION AND

STAMPING

1 .Work site Accidents ART 377. – are exempt from stamping and registered free of charge, when there is a registration process, the acts made out for the carrying out of provisions relating to work accidents and work related diseases, as well as the decision and court orders, and any procedural acts related to such regulations.

2. Administration Acts ART 378. - Acquisitions and exchanges made by the State, territorial communities or public establishments of an administrative character, and, in general, all other acts of which the duties would be charged to such communities or establishments, are registered free of charge. Are also registered free of charge and, exempt from stamping acts related to the technical and financial aid given by the regions to the traditional communities within the context of regional programs for rural expansion.

3. Legal Assistance ART 379. - 1. Are exempt from stamping and registered free of charge when registration process is involved, procedural acts prepared upon the request of the party receiving assistance, as well as decision and court orders where stamping and registration taxes are at the expense of the party receiving assistance. Act, Decision and court orders shall include a note indicating the date of the decision which grants judicial assistance.

2. The assisted party is exempt from the payment of amounts due to the court clerks and ministerial officers for taxes, remuneration and fees. 3. The transportation costs for judges, ministerial officers and experts, and the fees of this last one, taxes of witnesses whose hearing was authorised by the tribunal or the judge, and, generally, all expenses due to third parties who are not ministerial officers, are prepaid by the Treasury, upon order delivered by the President of each jurisdiction. In the event of a sentence said at the expense of the party opposed to the assisted party for the assisted, the prepaid said amount become automaticaly payable.

4. Associations. ART 380. – Are registered free of charge All acts and transfer concerning associations whose original capital or, failing that, whose annual income is made of at least 80% of public funding.

Such acts and transfers shall contain, in addition a reference expressing the present provisions, the information necessary to enable the Services to ensure that the conditions of exemption are satisfied.

5. Defense Attorney ART 381. – Are exempt from the stamping process, acts relating to procedures between defense lawyers, before any jurisdiction, as well as any notification summons relating to such acts.

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6. Mauritanian Central Bank

ART 382. – Are exempt from stamping and registered free of charge any acts, documents, pieces of writing and transfers concerning the Central Bank of Mauritania, the taxes on which would be borne by the Central Bank of Mauritania pursuant to the legal rules relating to the payment of taxes.

7. National Development Fund ART 383. - Are exempt from stamping and registered free of charge any acts, documents, pieces of writing and transfers concerning the national Development Fund, the taxes on which would be borne by this late one pursuant to the legal rules relating to the payment of taxes.

8. Central Economic Cooperation Fund ART 384. - Are exempt from stamping and registered free of charge any acts, documents, pieces of writing and transfers concerning the Central Bank of Economic Cooperation, the taxes on which would be borne by this last one pursuant to the legal rules relating to the payment of taxes.

9. Savings Bank ART 385. - Are exempt from stamping and registered free of charge, when stamping registration process is necessary, acts Printed forms, writings and acts of any nature necessary for the services of the Savings Bank.

10. Social Security Fund

ART 386. - Are exempt from stamping documents of any nature required to obtain family assistance, assistance in the event of work accidents and work related diseases, assistance to the disabled, elderly or in the event of a death, and all other social security assistance given by the National Social Security Fund.

11. Contributions and Taxes

ART 387. - Are exempt from stamping and registered free of charge, when stamping registration process is necessary, any acts of lawsuit or other acts whether in lawsuit or defense, with the purpose of the recovery of public contributions and any other amounts due to the State or the territorial communities.

12. Gifts between Spouses and Close Relatives

ART 388. - The gifts referred to in article 294 are registered free of charge when the offerer is the spouse, ascendant or descendant of the donor. The benefit of this provision is subject to the presentation of an certificate of the civil status registry records showing the marriage or filiation.

13. Bills of Exchanges

ART 389. – Are exempt from stamping Bills of exchange, promissory notes or bills payable to the bearer, and all negotiable acts or business actc.

14. Public Registrar ART 390. - Are exempt from stamping recorded civil acts, as well as any copies and certificates of civil status records of any nature delivered to individuals. Court decision made on such procedures are registered free of charge and are exempt from stamping. ART 391. - are exempt from registration and stamping all acts related to the procedures produced upon the request of the public ministry and having the following purposes :

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1. to correct omissions and carry out certificates on the registration of civil status. 2. to replace lost or destroyed registration of civil status and to supplement registration that have not been kept. Court decision made on such procedures are registered free of charge and are exempt from stamping.

15. Expropriation for Public Purposes ART 392. - Are exempt from stamping and registered free of charge notifications, contracts, decision court and other acts made pursuant to the provisions relating to government foreclosing for public purposes.

16. Business Pledge ART 393. - Are exempt from stamping the register of records kept by the court clerk in pursuance of the law related to the sale or liquidation of securities over businesses, registration slips, acknowledgments of deposits, records, certificates, certificates and copies produced pursuant to the said law, as well as documents produced to complete a process and which remain submitted to the court clerk, and any copies delivered, under the condition that such documents expressly state their destination.

17. Civil and Military Allowances

ART 394. – Are exempt from stamping and registered free of charge if stamping process is needed Acts produced towards and in pursuance of the provisions relating to civil and military pensions and disability, old age or widow pensions.

18. Family Allowances ART 395. – Are exempt from stamping and registered free of charge if stamping process is needed, act produced towards and in pursuance of the provisions relating to family assistance.

19. Real Property and Mortgages

ART 396. - The following are exempt from stamping: 1. Documents produced by applicants to obtain the registration of buildings. 2. Copies of acts intended to be submitted to the office of registration of mortgages and real estate property for the publication of rights in Rem. 3. The records, certificates, statements and copies produced by the registry in regards to the decree of July 26th, 1932 on the reorganisation of the real property regime. The documents referred to in no. 1 and 2 specificaly state that they are intended to be submitted at the office of registration of mortgages and real property to obtain the completion of a process needed to be specified. They cannot be used for any other purpose, or will be issued a fine of 200 UM, in addition to the payment of the taxes, against those who make such use of them.

20. Trade Registry

ART 397. - The following are exempt from stamping: 1. Copies of registration from the registry of commerce delivered in pursuance of the law. 2. Copies of documents lodged with the clerk of the Tribunal of first instance, acting as a trade tribunal, by foreign commercial companies.

21. Directories ART 398. - Are produced on unstamped paper the logbooks that bailiffs and court clerks keep in pursuance of the provisions relating to registration and in which they record all acts, notices, judgements and court orders which are exempt from the process of stamping and registration, as well as bulletins no. 3 of the criminal records produced by them.

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22. Business Cooperatives

ART 399. - Are exempt from all registration and stamping taxes all acts and transfer concerning companies and organisations of a co-operative character constituted and functioning according to the provisions of the law no. 67-171 of July 18th, 1967, of which related taxes would be at the expense of the said companies or organisations. Such acts and transfer shall contain, in addition to an express reference to the present provisions, the date of the decision approving the co-operative company. The exemption granted by this article applies to the acts of constitution of co-operative companies and their associations.

23. Companies Where the Investment is

Partly Made of Public Funds ART 400. – Are registered free of charge acts of constitution or increase in the capital of companies whose initial capital or capital after increase is constituted of at least 51% public funds. Similarly shall be registered free of charge acts of creation of a company which benefits from a long term fiscal regime and whose capital, of at least 200 000 000 UM, is in addition constituted by at least 20% Mauritanian public funds, shall be registered free of charge.

24. Benefit Societies ART 401. - All acts, documents and pieces of writing concerning union companies and their associations are exempt from registration taxes and stamp duty except acts transferring property or the use of immovables. Professional organisations legally created, which allow in their constitution union association for their subscribing their members, benefit from the fiscal immunities granted to union union association.

25. Workers Unions ART 402. - Are exempt from registration taxes and stamping duty all acts and transfer concluded by professional unions created according to the labour code, and of which all the taxes would be at the expenses of the said professional unions

26. Labor

ART 403. - All documents provided to verify employment are exempt from stamping. ART 404. – Are exempt from stamping all procedural acts, court decision and any other acts necessary to their enforcement towards the procedures before Labor court. The same exemption applies to actions on appeal or to the supreme court.

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CHAPTER IV

TAX ON REAL ESTATE ADVERTISING

Section I

TAX FALLING INTO THE GOVERNMENT’S BUDGET

ART 405. - The taxable base option, the index rate and the tax collection rules for the benefit of the State's budget, for the completion of the process provided for in the decree of July 26th, 1932 reorganising the regime of real property, are established according to the following provisions. ART 406. - The proportional taxes collected for the benefit of the budget are paid: 1. In registration matters, on the market value attributed to the buildings in the requisitions. 2. In registration matters (constitution, transfer or cancellation of right in Rem), on the amounts stated in the acts if it is regarding rights created, transferred or cancelled in exchange for a correlated cash consideration or, if not, on an estimate of the market value of the rights created, transferred or cancelled provided by the parties. For the collection of taxes, the portions of amounts and values lower than 100 UM are not taken into account. ART 407. - When the amounts stated in the act or the estimated values given by the parties appear to be lower than the real value of the created, transferred or cancelled rights, the Registrar is able to have an appraisal carried out to determine the exact value of the said rights.

ART 408. - The appraisal is undertaken and carried out according to the procedures set out in articles 474 and 553. In case that an under-appraised value is recognised, penalties are paid in accordance with the provisions of the said regulations. ART 409. - The following are collected for the benefit of the budget: 1. For registration carried out in the real estate books, on the market value of the registered building: 2%. 2. For the recording of an act creating or transfer of intangible property, on the amounts stated: 1%, except for the registration of foreclosures or of the general body of the creditors or of a subrogation of mortgage, for which process is only a 0.5% tax is payable. In case the registration relates to several property titles, regardless of the number of such titles, the tax for the benefit of the budget can only be collected once on the total amounts to be subscribed. 3. For the recording of a title in the registry of deeds (registration office concerning real estate titles) cancelling intangible property: 0.5%. 4. For the renewal of an registration made on the property title at the time of registration, on the amount of the registration: 1%. 5. For the creation of a new property title following the joining or division of preceding titles, on the value of the transferred parcels only: 1%, such tax merging with the tax owed for the recording of the transfer. A minimum of 2000 UM is payable for the process referred to in points 1 to 4 above which would lead to 2000 UM in proportional taxes.

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ART 410. -In the case where the regulations mandates the compulsory delivery of a property title upon the expiry of the appraisal, the payment and recovery of the registration taxes and real estate publication taxes payable at the time of creation of the acts of transfer shall be noted and pursued according to the conditions applicable to acts transferring the ownership of immovables ART 411. - Any formalities other than those specificaly referred to in article 409 do not give rise to any tax.

Section II

REMUNERATIONS OF CURATORS AND CLERKS

ART 412. - The tax base, the rates and rules of payment of the salaries of Registrars and wages of clerks of court, due by the parties requesting the completion of the process provided for by the decree of July 26th, 1932, reorganising the real property regime, are established in accordance with the following methods:

I. Salaries of Curators ART 413. - The salaries established for the benefit of the Registrars represent the allowance due for the responsibility taken on by for the of execution of the process. ART 414. - The proportional salaries owed to the Registrars are paid on the same basis as the proportional taxes collected for the benefit of the State's budget. ART 415. - In the event of insufficiency duly noticed, according to the procedure set out in article 553, of the amounts stated in an act or of the estimated values, a salary supplement is payable in all cases where any additional tax is payable.

ART 416. – It is due to the Registrar of real property a salary :

A. Proportional Salaries 1. For the completion of the process of registration, on the market value of the registered building: 0.50%. 2. For the registration registration as real property of an act constituting or transferring of intangible property: 0.20% except for the registration of foreclosures or of the general body of the creditors or of a subrogation of mortgage, for which process is only due a 0.10%. In case the registration relates to several property titles, regardless of the number of such titles, the tax for the benefit of the budget can only be collected once on the total amounts to be subscribed. 3. For the registration as real property of an act cancelling a intangible property: 0.10%. 4. For the renewal of an registration made on the property title at the time of registration, on the amount of the registration: 0,20 %. 5. For the creation of a new property title following the joining or division of preceding titles, on the value of the transferred parcels only: 0,20 %, such tax merging with the tax owed for the recording of the transfer. For the processes mentionned on the above section, the mimimum tax collextion is fixed at 100 UM.

B. Fixed Salaries 1. For the registration as real property of an acts modifying a intangible property, or of the order authorising a temporary or pre-notation, or of an opposition in the event of a deferred registration: 100 UM.

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2. For the registration or the cancellation of an order for seizure or an unavailability clause : 100 UM. 3. For the preparation of each certificate of registration: 20 UM. 4. For the notification of registration of right in Rem, to the holders of copies of real property titles or of certificates of registration, by minute or copy: 20 UM. 5. For the creation of each duplicate of property title, for the matching of each copy of the property title: 100 UM; and, in addition, for the drafting of each duplicate of analytical slip: 10 UM per slip. 6. For the creation of a new property title following the division of previous titles, without actual transfer: 100 UM. 7. For the merger of two or more titles into one, either by joining to one of the titles, or by creation of a separate title: 100 UM. 8. To notify the registrar of oppositions about an act to be registrer after a division : 20 UM.

C. Salaries Resulting from Public Consultation of Property Books

1. For each certificate of tallying for a copie or for certificate of registration with the property title: 60 UM. 2. For each statement of intangible property, belonging to a particular individual or related to a particular building: - per article 20 UM - with a minimum of 100 UM 3. For each copy of act or of analytical slip: 20 UM per roll. 4. For each duplicate of receipt payement: 10 UM.

ART 417. - Any formalities other than those referred to in the preceding article do not lead to any salary.

D. Salary Deductions ART 418. The annual actual gross salaries of the Registrars of real property are subjected to deductions for the benefit of the Budget according to the rate set as followed : From 0 to 120.000 UM none From 120.001 to 200.000 UM 55 % from 200.001 to 300.000 UM 60 % from 300.001 to 400.000 UM 65 % from 400.001 to 800.000 UM 75 % from 800.001 to 1.400.000 UM 80 % from 1.400.001 to 2.000.000 UM 85 % from 2.000.001 to 5.000.000 UM 90 % Above 5.000.000 UM 92 % ART 419. - The deduction is made every 3 months by the Registrar himself. ART 420. - The Registrar establishes and sends to the Director of Property (Directeur des Domaines) within the first two weeks of each trimester, the statement of the salaries received during the previous trimester and since the beginning of the year, completed by indicating the date and references of the payment. For the calculation of the percentage brackets for the deduction applicable to the salaries of the trimester, it is consider the total amount of salaries received since the beginning of the year. Any delay in the payment of the deductions leads to the payment of interest at the rate of 6% yearly on the amounts payable In the event of change of party in charge of the registration during the course of the year, or in the case of a temporary replacement, the deduction, paid on the

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total amount for the year, is at the expenses of the interested parties in proportion to the salaries received by each of them during the course of the year under considered.

II. Clerk Wages ART 421. - The amount of 200 UM is payable to the clerks of Tribunals of first instance for the posting in the courtroom of the certificates of requests and for the preparation of certificates. Any other fees payable in the event of lawsuit between plaintiffs and defendants are dealt with according to the common law rules.

Section III

COMMON PROVISIONS

I. Exemptions ART 422. Are exempt from all taxes, fees and salaries procedures undertaken in order to obtain the registration of buildings belonging to the State as well as any transfers and any other registration whatsoever related to such buildings. The State and the territorial communities are granted the same exemption for transfers and all other registration s relating to buildings they would have purchased from individuals. The State and the territorial communities are granted the same exemption for transfers and all other registrations relating to buildings they would have purchased from individuals. However, auctioneers, dealers and any party acquiring buildings from the above mentioned communities become liable for registration expenses when such formality was required prior to the grant of such buildings.

II. Additional Provisions

ART 423. - If a request for registration remains unsatidfied, whatever the reason for the holding of the process, the following is deducted from the amounts paid: 1. In all cases, the amount of fees due to the court clerk. 2. In the case where the marking out (land) has already occurred, half of the proportional tax payable to the budget. Any difference is refunded to the claimant who demanded it. ART 424. - The payment of taxes and salaries claimed by the Registrar may never be deferred, for any reason whatsoever, except by parties paying an appeal in restitution before the Director of Property (Directeur des Domaines) ART 425. - The total amount collected at the time of the process requested at the office of Registration of property and property rights must be indicated clearly in figures, as follows: 1. For the registration procedure, at the bottom of the first page of the cover protecting the copy of the property title given to the applicant; 2. For subsequent clause, at the bottom of the duplicate of the analytical slip of the act mentioned which must remain appended to the same copy. ART 426. - The parties have, in addition, the right to request in any case, from the Registrar, details of the taxes, salaries and various fees making up the global amount reported as described in the previous article.

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PART II

TAX COLLECTED FOR THE BENEFIT OF TERRITORIAL COMMUNITIES

SINGLE TITLE

ADMINISTRATIVE LOCAL TAXES

CHAPTER I

REAL ESTATE TAX ON BUILT ESTATES

Section I

TAXABLE PROPERTIES

ART 427. - 1. It is fixed an annual tax on built properties except those that are expressly exempt. By built properties, it is meant all constructions of masonry, iron, wood and other materials, which are permanently fixed to the ground, so that it is impossible to move them without destroying them. 2. The following are also subject to the land tax on built properties: a) The bare land of buildings and land constituting an indispensable and immediate temporary site of the constructions. b) The lands assigned to a commercial, industrial or artisanal use, such as work sites, storage areas for goods and other sites of the same nature. The lands assigned to a commercial, industrial or craft use, such as work sites, storage areas for goods and other sites of the same nature. c) Equipment tools of industrial establishments permanently fixed to the land in such a way that it is impossible to

move it without damaging the building, or which lies on special floors that are attached to the building, as well as all commercial or industrial installations assimilated to constructions.

Section II

EXEMPTIONS

ART 428. - The following are exempt from the land tax on built properties: 1. Blocks, buildings or constructions belonging to the State and to territorial communities 2. Blocks, buildings or constructions belonging to public establishments of an administrative nature when they are assigned to a public service or general use under the condition that they do not generate any income. 3. Monuments used as public places of worship. 4. Work site built for the distribution of potable water and electric energy. 5. Buildings used by farms as wearhouse for animals or crops. 6. Buildings belonging to foreign States and assigned to the official residence of their diplomatic and consular missions approved by the Mauritanian government. 7. Buildings used for eduational purposes.

Revised 2007 98

8. Buildings assigned to medical or social work assistance. 9. Traditional huts However, the buildings referred to in points 8, 9 and 10 above are taxable when they are rented out.

Section III

TAXABLE BASE - DETERMINATION OF RENTAL VALUE

ART 429. – Buildings subjected to the land tax on built properties are taxable according to their rental value as at January 1st of the year of taxation after deduction of a fixed reduction of 20% for the consideration of the wear and tear and maintenance and repair costs. ART 430. - (nouveau). - The rental value is the price that the owner or party in possession gets from his buildings when he leases them or, if he occupies them himself, what he could get for them if he leased them. 1. For the buildings referred to in paragraph 1 and at section 1 and 2 of paragraph 2 of article 427, the rental value is determined by means of written contracts or verbal rental agreements entered into in standard conditions. In the absence of related agreements, the rental value is determined by comparing with similar buildings for which the rent as been notified to the Taxation Department, or is widely known. If none of these processes can be used, the rental value is determined by applying the rate of 14%: a) - to the cost price of the building, all taxes included, if no transfer for valuable consideration has occurred since its completion. b) -to the price expressed in the most recent act of transfer if the building was subject to transfers since its completion.

However, when the price has been recognised as being insufficient, the value to be retained is the one fixed by the Registration Service. 2. For the equipment and the installations referred to in paragraphs 2-3 of article 427, the rental value is fixed, in the absence of rental contract, at 14% of the cost price inclusive of all taxes.

Section IV

TAX DEBTOR ART 431. The land tax on built properties is due for the whole year by the owner or the party in possession as at 1 January of the taxable year, except in the case provided for in article 433. The payable tax on built property is dur for the whole year by the owner, the property holder or the obvious owner. Is consider as obvious owner any individual uccupying the property and able to state the exact name and address of the owner.

Section V

TAX RATE

ART 432.– The land tax on built properties is calculated on the taxable base as defined in article 429 at the a rate voted by municipal council in the limits of minimum and maximum followed : 3% and 10%. For the calculation of the tax, the taxable base is rounded down to the nearest one hundred ouguiyas. The obvious owner are mandated to inform before February 28th of each year, the tax authorities, the completion of new buildings, the home improvement made to the existing buildings or to their use. Failure to provide a declaration whithin the deadlines leads to a fine from 5000 to 20 000 UM towards the payable taxes.

Revised 2007 99

For the communities where are located the tax services, an amandement from the ministry of finance can empower mayor upon request to proceed with the enventory of all taxable bases, the calculation of taxes, and the creation of functions. The mayors assigned to such procedures are mandated to inform the general director of Services on september 30th of each year the list of taxpayers and the amount of taxes they are liable for.

Section VI

PARTIAL TAX WAIVING

ART 433. - In the event of accidental destruction, in whole or in part, or voluntary destruction of their building during the course of the year, the owners or parties in possession may request in the form set out in article 560, a reduction of the tax in proportion to the time remaining between the first of the month following the destruction or opening of the destruction site and December 31st of the same year.

Section VII

PROPERTY TRANSFERS ART 434. - The transfers of real estate property are carried out at the request of the interested parties. They can, however, be automatically applied in the functions, upon authorisation of the General Director of Taxation, by tax officer based on certain documentation that may have come to their attention. ART 435. – As long as the the transfer has not been effected, the previous owner continues to be taxed on the function, and he, his legal beneficiaries or natural heirs can be accountable to pay the land tax, only if they have a right of recourse against the new owner.

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CHAPTER II

PROPERTY TAX ON AGRICULTURAL LAND ASSIGNED TO MARKET GARDENING, CEREAL, FRUIT AND FLORAL CULTIVATIONS

ART 436. - 1. Communities can establish through deliberation of the Town Council, along with the adoption of the initial budget, a land tax on agricultural lands assigned to market gardening, cereal, fruit or flower cultivation. 2. Such land tax is due by the farmer of the taxable agricultural land. 3. The annual amount of such tax is decided each year by deliberation of the Town Council. It cannot exceed 100 UM per hectare of exploited land. 4. The tax on agricultural lands is established by annual census. In communities where the Tax Department is not represented, the General Director of Taxation may delegate to the secretary-general of the said community the power to carry out the census and establish the land tax. The general secretaries to whom such powers are delegated shall provide to the General Director of Taxation, by September 30th of each year, the compiled list of taxpayers and of the tax payable by them. Errors or omissions are rectified through the rotating turns. 5. The tax on agricultural lands shall be paid immediately at the time of the enventory operation. For that purpose, the agent in charge of collection, who go with the agent in charge of the enventory (census), delivers a ticket which represents the amount of tax payable, or establishes an invoice requiring immediate payment, which gives rise to the delivery of a receipt taken from a counterfoil book.

Taxpayers who have not paid their taxes in accordance with the above conditions shall be named in a special recovery statement made enforceable by the Mayor. The taxes and a penalty of are immediately payable. They are recovered in accordance with the procedures, and with the guarantees, sureties and privileges, provided for by this code. The regulation of the payments and execution of special recovery statements gives rise to the production of a title to the payments imputed to the Parties, Chapters and Articles listed in the communities budget index according to the nature of the product.

Revised 2007 101

CHAPTER III

RESIDENCE TAX

Section I

TAXABLE PREMISES

ART 437. - 1. The residence taxes are payable : a) For all premises assigned to residence. b) For all premises used by companies, associations, groups and other private organisations not liable for the tax on licences. 2. The following are not subject to taxes : a) Premises assigned to a professional,

industrial, commercial and artisanal use, liable for the proportional tax on licences;

b) Premises used for the carrying out of their activities by taxpayers subject to the community taxes provided for in article 463 and subsequent articles;

c) Buildings used for agricultural activities d) Premises set aside for public worship; e) Premises intended for the

accommodation of students in schools and boarding schools;

f) Premises used by hospitals and medical centres, except those premises used for personal accommodation.

g) Government offices. Any part of the above premises used as personal accommodation, remains subject to the taxes.

Section II

INDIVIDUALS LIABLE TO TAX

ART 438. - 1. The rates are owed by any individual who has, on any account whatsoever, the availability or right of use of taxable premises, even if the person does not in fact occupy them.

Government employees and civil and military employees living in buildings belonging to the State, the regions, the community, public establishments, are taxable for the premises assigned to their personal residency. 2. Are exempt: - The State, the regions, the community

and public establishments of an administrative function.

- Ambassadors and other diplomatic agents of foreign nationality in the community of their official residence and only for that residence, to the extent that the countries they represent grant similar advantages to Mauritanian ambassadors and diplomatic agents.

- Humanitarian organisations and charitable and aid organisations; the members and personnel of such organisations remain taxable for the premises allocated to their personal residence.

Section III

TAX RATES

ART 439. - 1 –. The tax rate est based on the category in which the premises belongs to. Premises are divided based on their nature in five categories according to the municipal council: 2 – Tax rates are fixed every year by means of amendements from the municipal council in the maximum limit of 15.000 UM per premises. For assesment purpose, municipal councils can for each county, neighbourhood, lot of their community with different features, fixe different tax rate corresponding to them.

Revised 2007 102

Section IV

PLACES OF TAXATION

ART 440. - ART 440. – Individuals or legal entities are liable for the residence tax in the community where the premises they have at their disposal or for their use are located.

Section V

TAX Establishment ART 441- The residence taxes rates are established by way of annual census during which the premises are classified in one of the five categories of the scale according to their features. In the communities where the Tax Department is not represented, the General Director of the Tax Department may delegate to the general secretaries of the corresponding community, the power to carry out the census and establish the residence rates. In the communities where the Tax Department is represented, an amendement from the ministry of Finance can delegate to the mayor upon request, the excecution of an inventory or census and assesment of the residency tax. Errors and oversight noted are adjusted means of turns.

Section VI

PAYABILITY ART 442. - The taxe is due for the whole year for each premise an individual enjoy the availability or use.

Section VII

PAYMENT

ART 443. - The residence taxes shall be paid immediately at the time of the census (inventory) operation. For that purpose, the agent in charge of collection, who go along with the agent in charge of the census, delivers a ticket representing the amount of rate payable, or establishes an invoice requiring immediate payment, which leads to the delivery of a receipt taken from a counterfoil book. Taxpayers who have not paid their taxes according to the above conditions shall be noted in a special recovery project made enforceable by the Mayor. The rates and a penalty of 50% are immediately payable. They are recovered according to the procedures, and with the waranties, sureties and privileges, provided for by this code. The regulation of the collection and execution of special recovery projects leads to the production of a title to the payments deducted from the Parties, Chapters and Articles listed in the section budget index according to the nature of the product.

Revised 2007 103

CHAPTER IV

LOCAL TAX

ART 444. - The communities have the power to establish by way of deliberation of the Town Council, along with the adoption of the initial budget, community rates. ART 445. - The Shire community taxes are due by the head of family, within the meaning of article 85, who although living in the community do not fall within the field of application of the residence tax. The annual amount of such rates, determined by deliberation of the Town Council, shall not exceed 300 UM. The taxes are established, collected and recovered in the same conditions as the residence tax.

Revised 2007 104

CHAPTER V

LICENSE

Section I

INDIVIDUALS AND BUSINESSES LIABLE TO TAX

ART 446. - A business license is required every year by any individual or legal entity carrying out a professional activity volontarely, even if they are exempt from the tax on industrial and commercial profits or from the tax on non-commercial profits.

Section II

EXEMPTIONS

ART 447. - are exempt from the business license: - individuals, except carriers, who satisfy the conditions set out in articles 7 and 29 defining the field of application of the estimated tax regime, provided that they have not opted for the regime of simplified real profit on industrial and commercial profits ;

- the State and its Service departement, including the office dealing with the safety of food; - territorial communities - humanitarian organisations and charity and assistance organisations; - public establishments for the distribution of water.

Section III

LICENSE RATES

ART 448. - The business license includes only a fixed tax and a proportional tax. ART 449. - The fixed tax depends on the total turnover realised during the preceding year in the area of the community taken into account : The fixed tax is paid based on the following scale below:

CATEGORY TURNOVER FIXED TAXE 1: more or equal to 600.000.000 : 1.500.000 2: from 500.000.000 to 600.000.000 : 1000.000 3: from 400.000.000 to 500.000.000 700.000 4: from 300 .000.000 to 400.000.000 : 450.000 5: from 200.000.000 to 300.000.000 : 300.000 6: from 6.000.000 to 37.500.000 : 100.000 7: below 6.000.000 : 50.000 For the application of the above scale, turnover coming from retail sales of petroleum products is only counted up to 25% of its amount. ART 450. - - The provisions of this article are repealed

Order 2000 – of January 10th, 2000 pertaining to law of finances for 2000) ART 451. - The provisions of this article are repealed Order 2000 – of January 10th, 2000 pertaining to law of finances for 2000)

Revised 2007 105

Section IV

PLACES OF TAXATION - TERMS AND

CONDITIONS OF TAXATION OF SECONDARY INSTITUTIONS

ART 452. - The business license is payable in each community where the taxpayer has a professional installation or professional premises, an office or a worksite, or any other place referred to in article 450. The individuals or legal entities with this above characteristics shall provide to the General Director of the Tax Department, at the latest on February 28th of each year, the amount of turnover realised during the preceding year in the territorial area of each community. ART 453. - Any operations carried out by a business license holder in his own premises or in separate premises on the account of a third parties he/she is representing, leads to a separate taxation from the business permit established in the name of the represented party.

Section V

INDIVIDUALS WHO STARTS A BUSINESS OR ACTIVITY IN THE COURSE OF THE CURRENT YEAR

ART 454. - Any individuals carrying out an activity subjected to the tax on license, during the course of the year, must declare that activity in writing, within the following three days, to the Tax Department in the place where the activity is carried out, and to immediately pay the tax due. The fixed tax is based on the turnover that the Taxation Department estimates between the day of the begenning of the activity and 31 December. When the amount of tax so estimated is lower or higher than the tax payable on the turnover actually realised, by more than 30%, the Taxation Department

automatically either proceeds to recover the additional taxes, or to reduce the excess taxes. The following year, the business license is calculated according to the turnover actually realised during the previous year, extrapolated on a twelve months period.

Section VI

SETTLEMENT OF TAXATIONS ART 455. – Taxpayers subjected to the simplified real profit taxation must determine and pay immediatly at the latest thirty days following the deadline set for the declaration submission for their result according to article 14, the license amount due on the taxable base of the declaration.

Section VII

CARRIERS ART 456. - Individuals and legal entities carrying out activity of land transportation of persons or goods and the owners of utility vehicles with a load capacity exceeding two tonnes shall pay per vehicle used a business license tax according the scale below :

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I/ Vehicles exclusively providing transportation within surrounding areas and suburbs other than NOUAKCHOTT and NOUADHIBOU

Type of Vehicle

Taxe

Any type of vehicles with less than 9 seats 2 500 UM Any type of vehicles with more than 9 seats 5 000 UM Utility vehicles with a loading capacity equal or less than eight tonnes

8 000 UM

Utility vehicles with a loading capacity from eight to twelve tonnes

10 000 UM

Utility vehicles with a loading capacity exceeding twelve tonnes 25 000 UM

II/ Vehicles exclusively providing transportation within the followings cities; NOUAKCHOTT and NOUADHIBOU

Type of Vehicle

Taxe

Any type of vehicles with less than 9 seats 5 000 UM Any type of vehicles with more than 9 seats 10 000 UM Utility vehicles with a loading capacity equal or less than eight tonnes

8 000 UM

Utility vehicles with a loading capacity from eight to twelve tonnes

10 000 UM

Utility vehicles with a loading capacity exceeding twelve tonnes 30 000 UM

III/ Vehicles providing interurban transportation

Type of Vehicle

Taxes

Any type of vehicles with less than 9 seats 7 000 UM Any type of vehicles with more than 9 seats 15 000 UM Utility vehicles with a loading capacity equal or less than eight tonnes

25 000 UM

Utility vehicles with a loading capacity from eight to twelve tonnes

30 000 UM

Utility vehicles with a loading capacity exceeding twelve tonnes 55 000 UM The payment of the license tax is made at the same time as the payment of the tax on motor vehicles, by an immediate payment title provided by the Tax Department. It is the carriers' responsibility to ensure that the Treasury's accountant provides them with a payment receipt per vehicle along with the vehicle registration number, the number of seats or the loading capacity. The payment receipts shall be presented at the request of the duly commissioned tax

agents and any agents empowered to give fines in the matter of road traffick. The increase provided for by article 166 applies to the taxes on business license due by transporters.

Revised 2007 107

ART 457. - The receipts from the license tax on inbounds and outbounds transportation are credited on a temporary deduction account for receipts included in the index of the accounts of the Treasury, and allocated for the benefit of the communities following the conditions laid out by joint Order of the Ministers in charge of the Interior and of Finances.

Section VIII

PROOF OF LICENSE PAYMENT ART 458. – The receipt delivered by the Treasury's agent represents the proof of payment of the license for the current year. It must be shown upon any request from any Tax agents and officers and agents of the Criminal Investigation Department. Parties subjected to the license tax who cannot prove their taxable base will have to pay the tax for the full year, without any harm to a fiscal fine equal to 25% of the tax amount.

Revised 2007 108

CHAPTER VI

LICENSE DUTY

Section I

GENERAL PROVISIONS

ART 459. - Is subjected to the licence tax, any indivuduals or legal entity in the wholesale or retail sale of alcoholic or fermented beverages, either for immediate consumption or take-out. ART 460. - The licence tax is due for the whole year, regardless of the time when the taxpayer begins or ceases its operations. ART 461. - All provisions related to the taxable base, the recovery and control of the payment of the business license tax are applicable following license regulations.

Section II

RATES

ART 462. - The licence tax is set at 25 000 UM. It is payable for each institution or work site run by the taxpayer.

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CHAPTER VII

ADMINISTRATIVE LOCAL TAXES

Section I

FIELD OF APPLICATION ART 463. – Individuals whose activities fall within the field of application of the tax on industrial and commercial profits, as defined in articles 1 and 2, and who satisfy the conditions laid out in article 29 to be granted from the benefit of the estimated regime, and who have not opted for the simplified actual regime, are subject, according to the nature of their principal activity, to one of the taxes provided for in article 465.

Section II

RATE

ART 464. - ART 464. - The monthly rates for community taxes depends on the type of the main profession or activity activity carried out. For each profession practiced or activity carried out the rate changes according to the volume of business normally produced. The rating of the taxpayers in one of the five categories listed in article 465 is done according to the size of their premises, of their stocks, of their equipment, of their personnel, of their goodwill and of their availability to pay tax. ART 465. The tax rates are provided each year, by means of amendement from the Town Council, along with the passing of the initial budget, for each profession practiced or activity carried out, and for each category, within the limits of 50 UM to 6 000 UM set out in the below scaled :

Revised 2007 110

Nature des activités Monthly Tax rates

1st category 2nd category 3rd category 1. Tradings - Food Product - Fruit and vegetables - Fish Sales - Fish drying - Butchers (slaughterhouse and shops) - Butchers free stands (in markets) - Meat barbecue free stands (dibiteries) - Bakeries - Bakeries shops - Pastries Shops -Milk Sales - Water sales - restaurants –bars - Clothing and shoes - Household goods-houseware - Hardware shops - Construction tools - Auto parts shops - pharmacies - opticiens - librairies-paper shops - Newspaper - Jewelries - Souvenirs and craft shops -Music stands - Wood coal and wood shops - Sale of various articles and products in shops - Sale of various articles and products on free - Hawkers - Sale of fuels and lubrifiants - Other trades not mentioned

3000 to 6000 2000 to 4500 1500 to 3000 1000 to 2000 3000 to 6000 2000 to 4500 1000 to 2000 3000 to 6000 1000 to 2000 3000 to 6000 1500 to 3000 1000 to 2000 3000 to 6000 3000 to 6000 3000 to 6000 3000 to 6000 3000 to 6000 3000 to 6000 3000 to 6000 3000 to 6000 3000 to 6000 1000 to 2000 3000 to 6000 3000 to 6000 3000 to 6000 1000 to 2000 3000 to 6000 1000 to 2000 1000 to 2000 3000 to 6000 3000to 6000

1000 to 3000 700 to 2000 500 to 1500 500 to 1000 1000 to 3000 700 to 2000 500 to 1000 1000 to 3000 500 to 1000 1000 to 3000 500 to 1500 500 to 1000 1000 to 3000 1000 to 3000 1000 to 3000 1000 to 3000 1000 to 3000 1000 to 3000 1000 to 3000 1000 to 3000 1000 to 3000 500 to 1000 1000 to 3000 1000 to 3000 1000 to 3000 500 to 1000 1000 to 3000 500 to 1000 500 to 1000 1000 to 3000 1000 to 3000

500 to 1000 200 to 700 100 to 500 100 to 500 500 to 1000 200 to 700 100 to 500 500 to 1000 100 to 500 500 to 1000 100 to 500 50 to 500 500 to 1000 500 to 1000 500 to 1000 500 to 1000 500 to 1000 500 to 1000 500 to 1000 500 to 1000 500 to 1000 100 to 500 500 to 1000 100 to 500 200 to 500 50 to 500 500 to 1000 50 to 500 50 to 500 100 to 1000

Section III

PLACES OF TAXATION

ART 466. – Community taxes are payable in each community where the individuals referred to in article 463 practices a taxable line of work or activity. When within the area of a same community, an individuals practices his or her profession or carries out his or her activity in several separate places, each boutique, shop,

workshop, worksite or other place, is taxed separately.

Section IV

TAX SETTLEMENT ART 467. – Communities must prepare, during the month of January of each year, final lists, by type, profession or activity, of the taxpayers assigned to community tax.

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Such lists are regularly updated as the monthly recovery tax process is been carried out. The taxes are established by the communities using monthly census, during which the taxpayers are categorised into one of the five categories of the scale according to the caracteristics laid out in article 464.

Section V

TAX PAYMENT

ART 468. – Communities taxes must be paid immediately at the time of the monthly census (inventory) operations. For that purpose, the officer in charge of collection, who goes along with the officer in charge of the census (inventory), delivers a ticket which representing the amount of tax payable, or establishes an invoice requiring immediate payment, which leads to the delivery of a receipt taken from a counterfoil book. Taxpayers who have not paid their taxes according to the above conditions shall be noted in a special recovery project made enforceable by the Mayor. The rates and a penalty of 50% are immediately payable. They are recovered according to the procedures, and with the waranties, sureties and privileges, provided for by this code. The regulation of the payments and execution of special recovery statements leads to the production of a title to the payments imputed to the Parties, Chapters and Articles listed in the shire budget index according to the nature of the product. The regulation of the collection and execution of special recovery projects leads to the production of a title to the payments deducted from the Parties, Chapters and Articles listed in the section budget index according to the nature of the product.

Section VI

PROOF OF TAX PAYMENT

ART 469. - The ticket, or receipt, provided by the officer in charge of the collection represents a proof of payment of the monthly tax. The tickets, or receipts, shown upon the request of any agent of the Treasury, agents and officers and agents of the Criminal Investigation Department, and a failure to do so leads to the seizure, at their expense, of their equipment and goods.

Revised 2007 112

CHAPTER VIII

TAX ON LIVESTOCK

ART 470. - The provisions of this article are repealed. (order 94.001 of 15/01/1994 pertaining to law of finances for 1994). ART 471. - The provisions of this article are repealed. (order 94.001 of 15/01/1994 pertaining to law of finances for 1994). ART 472. - The provisions of this article are repealed. (order 94.001 of 15/01/1994 pertaining to law of finances for 1994). ART 473. - The provisions of this article are repealed. (order 94.001 of 15/01/1994 pertaining to law of finances for 1994).

Revised 2007 113

CATEGORY II

COMMON PROVISIONS

CHAPTER I

ADJUSTMENTS AND AUDITING

Section I

ADJUSTMENTS

ART 474. – When the Administration notes an insufficiency, an inaccuracy, an oversight or a concealment of the elements used as the base for the calculation of taxes, duties or taxes owed by the reason of this code, the corresponding adjustments are made according to the following procedure: 1 - The Inspector informs the taxpayer of the reason and grounds for the intended adjustment. At the same time he invites the concerned party to provide his agreement and statement within a period of 8 days from receipt of such notification. Failure to provide an answer within 8 days will leads to a tacit agreement to the adjustments notified. 2 – If the taxpayer agrees within the deadline period or if any statements provided during that period are recognised as being well-founded the authorities proceeds with the establishment of a AMR according to the taxable base agreed on by the concerned party. 3– If statements have been provided within the deadline period and the disagreement still exist, tax calculation is done according to the figures determined by the Tax Inspector and notified to the taxpayer. The desagreement for the adjustment is issue by the authorities. The taxpayer can, by judicial recourse, request a rebate on the taxes after the AMR recovery has been imposed.

The provisions of this article do not apply in the case of automatic taxation, adjustment or assesment of the taxable base. ART 475. - 1. When a taxpayer requests the discharge or rebate on one of the duties or taxes referred to in titles I, II and III of Book I of this code, the authorities can at any time during the process and notwithstanding the deadline of the recovery period, object to compensation between the rebate accepted as justified and the insufficiencies or oversights of any type noted during the investigation in the taxable base or the calculation of the disputed tax. 2. . The compensations provided in paragraph 1 may be made in the same conditions with respect to registration taxes and stamp duty collected for the benefit of the State. 3. The compensations provided for in paragraphs 2 and 3 are made under the same conditions for the benefit of the taxpayer with respect to whom the Authorities makes an adjustment, when the interested party claims an overcharge is done at his expenses or when the adjustments results show a double taxation.

Section II

AUDIT OF THE TAXPAYERS

ART 476. - The agents of the fiscal services are empowered to check the taxable base of all of the duties or taxes due by the taxpayer they are auditing.

Revised 2007 114

However, the verifications of accounts on the spot can only be made by an agent with at least the rank of an Inspector. The auditor informs the taxpayer eight days in advance of the inspection of his establishment, by certified letter with acknowledgment of receipt, stating that he can be assisted by counsel of his choice. The taxpayer may request by letter to the Director General of Taxation, within two days of receipt of the notification of verification, that the verification be reported. For the auditing made unexpectetly or on a regular basis, the auditor must show a visit permit signed by the General Director of the tax department. The said visit permit gives the right to the auditor to have access to all accounting records of the company. ART 477. - The auditor informs the taxpayer eight days in advance of the inspection of his company, by certified letter with acknowledgment of receipt, stating that he can be request assistance from any council of his choice. The taxpayer can request, two days after receiving the certified letter, to postpone the audit by writing a letter to the General Director of the tax department. The taxpayer is mandated to show upon the request of the auditor all documents, books and papers as provided by law. The total obstruction of the verification (failure to produce any document at all or refusal to be audited) is punishable by a fine of 1 000 000 UM. The partial obstruction of the verification (failure to produce certain documents) is punishable by a fine of 400 000 UM. Such fines are applied in addition to the taxation mandated after an audit.

When adjustments are intented based on an audit, the taxpayer shall be informed by notification made according to the conditions set out in article 477. The taxable bases are automatically valued when the fiscal verification could not take place because of the taxpayer or third parties.

Revised 2007 115

CHAPTER II

FISCAL AND CRIMINAL PENALTIES

Section I

FISCAL PENALTIES

ART 478. – The late paiment or submision is punishable by a fine : - of 10% when it is less than two months . - de 25% when it is more than two months. - -The late paiment or submision of a

declaration, with or without deductions, is punishable of a fine of 20.000 ouguiyas per month.

- IIn the event of discount on the taxable base or on the taxes due, the amount is increased by :

* 10% if the amount of the said taxes do not exceed half of the taxes actualy due. * 25% if the amount of the said taxes do not exceed half of the taxes actualy due and in case of an automatic taxation due to the lack of declaration with a minimum of 100 000 ouguiyas. In case of fraudulant act or non paiment of taxes and deposits on IMF, IRF and tax contribution, the amount due is increased by 40%. Any business agent, expert or any other individuals, association, group or company who as an activity keep and manage accounting records of clients, who has assisted with the creation or use of documents or information recognised as inconsistent, is, without any harm to the penalties applicable pursuant to article 481, punishable by a tax fine set at 10 000 UM for each breach. The offender and his client are jointly liable for the payment of the fine. This article is repealed and replace by the articles nos 51, 61, 69 TER, 71, 83, 113, 166, 176, 184 quaterdeciès, 216, 217, 218, 219, 458.

Section II

CRIMINAL PENALTIES ART 479. - Without any inconsistancy to the particular provisions of this code, anyone who has fraudulently escape or has attempted to fraudulently skip the calculation of the total or partial payment of taxes, either by voluntarily omitting to provide a declaration within the deadline period, or by organising his insolvency or creating an obstacle by other devices to the recovery of tax, or by acting in any other fraudulent manner, is punishable, independently from the tax penalties which may apply, by a fine of 50 000 UM to 300 000 UM or imprisonment of six months to two years, or both. If the facts happened were facilitated by means of either purchases or sales without invoices, or invoices which do not relate to actual operations, the author of such invoices is punishable by fine of 50 000 UM to 1 000 000 UM or imprisonment of six months to three years, or both. The provisions of article 463 of the penal Code apply. This article however only applies, in the case of concealment, if it exceeds one tenth of the taxable amounts or 100 000 UM. In case of a re-offence within a period of five years, the taxpayer is punished by fine of 150 000 to 3 000 000 UM and imprisonment of one to five years. Legal lawsuit proceedures are initiated by a complain from the Finance Minister. Such complain can be submitted until the end of the third year following the year during which the breach was committed.

Revised 2007 116

ART 480. - Articles 59 and 60 of the Penal Code apply to the accomplices of the authors of the offences referred to in the previous article. ART 481. - – Are punishable by the penalties enumerated in article 479, any business agent, expert or any other individuals who practises the profession of keeping the accounts of their clients, and who is guilty of creating or assisting with the drafting of of false balance sheets, inventories, accounts or documents, of any type whatsoever, produced for the calculation of the taxable base due by the said clients. ART 482. - Without any inconsistancy to the fiscal fines listed on this code, whoever proceed with the tax calculation on wages and salaries, the tax on income from movable capital, the tax on property income, the tax on turnover, consumption taxes and other miscaleneous indirect taxes charged to clients and has kept from forwarding such amounts to the Treasury within six months of the previous deduction or of making the client liable for the tax, is punishable by fine of 50 000 to 1 000 000 UM or imprisonment of one to five years, or both.

Revised 2007 117

CHAPTER III

TAX COLLECTION

Section I

DIRECTS AND EQUIVALENT TAXES

I. Functions and Taxation Notices ART 483. Except where otherwise stated, direct taxes and similar duties are recovered by individual AMR. The community duties and taxes are recovered by collectif turns. The individual AMR concerns the first taxation, the additional taxes fixed after a ceasion, the cease of activities, companies transfer, taxes fixed after an audit or an adjustment of declaration, taxes resulting from a adjustment of oversight or innacuracies as well as any liquidation following a failure to provide a declaration or a failure to pay automatic taxation. The AMR are excecuted by the General Director of the Tax departement who can also delegate his power. The turns and special recovery statements related to community duties and taxes are enforceable by the Mayors and leads to the issuing of revenue titles. ART 484. - The date for the recovery of the turns (in french rolls) is fixed by the Treasurer General for State taxes and by the Mayors for the community duties and taxes. ART 485. The AMR are forwarded by the General Treasurer to the tax collector, with a statement of liquidation and a slip for the expenses paid out. The liquadation turns (in french rolls) and special recovery statements are enforceable by the mayor and are forwarded directly to the accountants in charge of the recovery using revenue titles.

ART 486. - The turns (in french rolls) and tax notices include, in particular, all information enabling the identification of the taxpayer (first and last names, address, date and place of birth, Number in the National Directory of Taxpayers) the nature, base, rate and amount of tax, the date of the recovery, the conditions of payability and the increase as well as the name of the accountant in charge of the recovery. ART 487. The tax notices are sent to the taxpayer at his home, residence address, or at his place of employment. In regards to employees liable for the general tax on income, tax notices are sent directly to the employer who is accountable for dispatching them to the concerned parties. The agents of the Post and Telecommunications Offices must cooperate with the Administration for the dispatching of any tax notices related to the taxes laid out in this code. Tax notices as well as any letters and notifications sent by the Administration to taxpayers are exempt from the stamp duty. ART 488. - The issuing of The turns (in french rolls) may be aknowledge to the taxpayers by any legal advertising means at the request of the General Director of Tax department or any directors of the administrative sector. However, individuals or legal entities liable for taxes who, as of July 1st have not received the tax notice concerning them, must check their status with the tax collector assigned to their area.

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ART 489. - The accountants and the collector of the Treasury in charge of the recovery of taxes must provide at no cost, to any individual upon their request, an certificate of the the turns (in french rolls) or AMR concerning them. Certificates of non-taxation are provided by the Service in charge of the taxable base. Fiscal discharges (quitus fiscaux) are provided by the Services in charge of the recovery. ART 490. - The General Treasurer and the accountants of the Treasury are responsible for the recovery of the turns (in french rolls) asigned to them. They must justify the total recovery of the payments referred to on the turns (in french rolls) and the AMR, except where the provisions of articles 572 and 573 apply.

II. Payability

ART 491. - The turns (in french rolls) are payable from the 30th day following the date they have been put into recovery. However, turns (in french rolls) issued after July 1st and those regarding the automatic adjustment and taxation related to the immediate payable taxes in full from the date they have been put into recovery. In case of a final departure or moving, as well as in the case of voluntary or forclosure, insolvency or judicial liquidation, transfer or a cease of business or the practice of a commercial or liberal profession, direct taxes and similar taxes are immediately payable. ART 492. - The duties and taxes collected on nontransferable turns (in french rolls) that have not been paid within two months following the date they have been put into recovery are automatically increased by 10%.

However, the turns (in french rolls) issued on automatic adjustment and taxation related to the immediate payable are subject to increase from the date they have been put into recovery. The increase is calculated on the taxes or part of the payable taxes. Its amount is rounded [up or down] to the nearest ouguiya. The rebate, discount or reductions granted to the taxpayer through the voluntary or contentious jurisdictions leads to the total or proportional cancellation of the above increase. The result from the increase may be assigned in part to distribution of the bonus to the employees and to the personnel of the collection Services and to the creation of a special fund for the promotion of recoveries according to the conditions which shall be fixed by decree.

III. Tax Payment ART 493. - Direct taxes and similar taxes are payable in cash or by any payment options authorised at the desk of the Treasury accountants or tax agents duly empowered to that case. ART 494. - 1. Any payment of taxes will leads to the production of a paiment receipt taken from an authorise counterfoil book. The turns (in french rolls) are initialled as payments are recorded. 2. A certificate of payment referring to the previously mentioned above paiment receipt is provided free of charge to any taxpayer who requests one as proof of payment for his taxes.

IV. Third Parties Obligations

ART 495. - The turn (in french roll) duly put into recovery is enforceable not only for the taxpayer who is listed on it, but also against his representatives or assignees.

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ART 496. - When an employee stop his activity for any reason whatsoever, the employer must notify such fact to the tax collector of the Treasury and the tax Inspector assigned to the area of his business, at least five days before the end of activity ART 497. - In the case of a business transfer, transfer of a building, of a charge, of an office, of a company or of the right to practise a non-commercial profession, the transferee is liable, jointly with the transferor, for the payment of any duties, taxes and payments owed as at the date of the transfer, for as long as the provisions of article 44, paragraph 2, and the registration process laid out in articles 267 and 304, are not satisfied. However, the individual originating the transfer is only liable up to the price of the transfer if the transfer is made for valuable consideration, or the value whitheld for the payment of the tax on transfers inter vivos if it is made on free bases. ART 498. - The owner of a business is jointly liable with the operator for the payment of taxes owed for the operation of such business.

V. Particular Provisions ART 499. - Legal entities, public or private organisations of the Mauritanian or foreign law, regardless of the fiscal regime they are subjected to, any individual subject to the tax on industrial and commercial profits and the tax on non-commercial profits, must collect the land tax on built properties and the taxes on income from property owed by the owners of the premises that they occupy. The amount to be withheld is fixed at 14% of the rent. They must repay, at the latest on 15th of each month, the amounts withheld from the rents paid the month before.

For each owner, the payment is made along with a declaration on a standard printed form including the tenants references, the first name, last name, address and the number in the National Directory of Taxpayers of the owner, the building information (number of block and lot number) as well as the month for which the withholding applies to. The paiment receipt provided by the Treasury is submitted by the tenant to the owner to allow him to prove the payment of the taxes for which he is accountable for. Are noted and paid by way of turns (in french rolls) and AMR, the payable taxes in the following cases : - -signed declarations; - failures to make a declaration; - declarations subjected to automatic

adjustments. ART 500. The rents not subjected to the 14% withholding and the fees not allowing the paiment of the 4% lose in that case their status of deductible charges for the calculation of the taxable base on the industrial and comercial profits and the tax on non-commercial profits ART 501. - 1. Taxpayers who are included in the turns (in french rolls) of the general income tax of the previous year must proceed with the payment on March 31st and June 30st of the provisional instalments. The amount of each of the two instalments is equal to one third of the main amount of taxes for which the taxpayer is liable for in the turns (in french rolls) related to the last year he was taxed.

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Taxpayers whose payment of the general income tax was put into recovery only between January 1st and June 15ft of the second year following the year of production of the taxable income must pay at the latest on June 30th of the same year an instalment equal to 60% of such tax. The payments are made upon a notice of recovery provided by the Treasury accountant who keeps the turns (in french rolls) of the previous year. 2. As an exception to the previous provisions, taxpayers whose tax contributions to the general income tax for the income received the previous year shall definitely be less than the instalments legally due can limit their provisional payments to the amount of such contributions. Such ability is subject to the submission by the taxpayer to the Treasury accountant of a certificate provided by the Tax Department stating the amount of the payment of the general income tax that will be therefore put into recovery. 3-Provisional instalment are deducted by the Treasury accountant on the amount of the general income tax payable on behalf of the revenue realised the previous year. If, because of a change of address, the taxes are being handled by a different Treasury accountant, taxpayer must justify such provisional payments to the new accountant. By failing to do so, he will be responsible for the costs of any prosecutions related to the recovery of the taxes to where the instalments should have been whitheld from. 4. The provisional instalments or part of provisional instalments not paid within the prescribed period are punishable by a 10% increase. Such increase may lead to a request for a rebate or discout on the under the conditions laid out in the 2nd paragraph of article 571.

5. failure to provide a vonlontary paiment, the recovery of the payable instalement and the 10% increase will be carried out according to the conditions fixed for taxes whose recovery falls upon the Treasury accountants.

Section II

TAX ON TURNOVER, TAX ON CONSUMPTION AND OTHER INDIRECT

TAXES

ART 502. - 1. Subject to the specific provisions provided for by articles 194, 214, 243 and 508, taxpayers liable for the tax on turnover, consumption taxes and other indirect taxes must calculate and proceed with the tax paiment according to the conditiond laid out in article 212. 2. The operations of discharge of the tax on turnover fall upon the Tax Department; they are carried according to the provisions of articles 184.7, 184.8, 184.9 and 184.10. ART 503. - For the calculation of the taxes, the taxable base is rounded down to the nearest hundred ouguiya. ART 504. - The Treasury accountant in charge of the receipt of the taxes on turnover and of the recovery of the consumption taxes and other indirect taxes provides on a daily basis to the Tax Service, a copy of the declarations related to the payments made at his counter. ART 505. – Are noted and notified to the taxpayer, by the beginning recovery, made enforceable by the Director General of Taxation, the duties and penalties payable in the following cases : - subscribe declarations; - the failure to submit a declaration; - declarations not subjected to automatic

adjustments - amendments made for the purpose of

fiscal inspections.

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ART 506. - The notices to start a recovery prepared in the conditions laid out in the article 505, are passed on to the service of the Taxation Department in charge of recoveries, to proceed with the final title of recovery. ART 507. The provisions of this article are repealed (Law No. 97.032 of 7 December 1997 – pertaining to the Finance Law for 1998).

SPECIFIC PROVISIONS

ART 508. - The Information Technology Department automatically withholds, for the Treasury, the tax on the provision of services payable on behalf of the provision of services and similar operations provided to the State. The Information Technology Department provides to the Tax Department on the 15th of each month a statement with the figures withheld during the course of the month which state the identity of the supplier, his address, his number in the National Directory of Taxpayers, the date of payment, the net amount paid and the amount of the withheld. Such statements once approved by the General Director of the tax departement are provided to the assigned General Treasurer as declaration of payment and final title to the receipts. Each payment shall be accompanied by a declaration and a nominative statement of the amounts withheld which shall state the precise identity of the supplier, his name, street and postal address, his number in the National Directory of Taxpayers, the exact nature of the services provided, the date of payment, the net amount paid and the amount of the monies withheld. Public institution of an administrative, industrial or commercial nature, public companies and companies with a mixed economy must on behalf of the public treasury, proceed with the tax witholding on taxable services rendered according to all

the services and other similar operations they have use. The witholdings related to the paiments made during the course of the month, provided by the public institutions, the public companies and companies with a mixed economy must be paid to the latest on the 15 of the following month at the cashier of the public treasury accountant they are assigned to. Each payment shall be made along with a declaration and a statement with figures of the amounts withheld which shall state the exacte identity of the supplier, his name, street and postal address, his number in the National Directory of Taxpayers, the exact nature of the services rendered, the date of the payment, the net amount paid and the amount of the withholding. The oversights and insufficiencies noted in the amounts withheld are adjusted and punishable accordings to the conditions laid out in article 72 of the General Code of Taxation.

Section III

REGISTRATION – REAL ESTATE ADVERTISING TAX AND STAMP

I. Payment of Duties Prior to Registration ART 509. - Taxes on acts paid before registration at the rates and quotas set by this code. No one can reduce or postpone le paiment based on a dispute on the quotas, or on any other motives whatsoever, only if there is a reimbursement if any. ART 510. - No public authority, neither the fiscal Administration, nor its agents, may suspend or have suspended the recovery of registration duties and any fines incurred without becoming personally liable for it.

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ART 511. - As an exception to the provisions of articles 283 and 509, the leases of buildings granted to the State are registered duty-free. The registration tax owed by the owner is collected by withholdings made on behalf of the Treasury at the time of each payment of the rent. The Information Technology Department who proceed with the withholding at the automatic source provides to the Registration Department on the 15th of each month, a statement with figures of the amounts withheld for the purpose of their reimbursement by the concerned Services. ART 511. Bis – As an exception to the provisions of articles 290 and 509, are exempt from registration duties for a period of five years, from January 1st 1993, summary order, court orders and amendements on civil commercial or administrative matters, issued by the competent jurisdictions in regards to the recovery of bank debts. ART 511. Ter- As an exception to the provisions of article 289, are subject to the reduced rate of 1% for a period of 5 years, from January 1st, 1993, transfers of immovable property acquired by banks, following judgments given and orders made on behalf of the settlement of the debts they owe. ART 512. - Legal entities as well as any public or private organisations of Mauritanian or foreign law must collect registration taxes on the leases of buildings granted to them. Such withholding is made according to the provisions of articles 283 and 284. They shall repay at the latest on the 15th of each month, the amounts withheld on the rents paid the previous month. Each payment shall be submited alond with a payment slip and statement with figures of the amounts withheld which shall state the

exacte owner’s identity (first name, last name, and address), the situation of the building (no. of block and lot) as well as the month for which the withholdings apply. The paiment receipt provided by the Registration Department is given by the tenant to the owner to enable him to prove the payment of the taxes upon any request of a registration agent. Any oversights and insufficiencies noted in the amont withheld are corrected and punishable according to the conditions laid out in articles 325 to 330.

II. Obligations of Agents

ART 513. - Registration agents shall not, for any reason whatsoever, including in the cases provided for by articles 474 and 553, postpone the registration of acts and transfers for which the taxes have been paid at the rates set by this code. Similarly, they are forbidden from suspending or stopping the course of the procedures by keeping any acts or notices. However, if an acts or a notice contains information useful for the discovery of taxes due, the Inspector has the power to take a copy and have it certified as a true copy of the original by the Officer who presented it. In the event of refusal, he may hold the acts for 24 hours to make a copy of it. ART 514. - The registration receipt is attached to the registered act. It is stated the registration date, the references to registration and spelled out the amount of duties collected. When the act contains several provisions each leading to a specific duty, the competent agent indicates them in order in the receipt and separately states the amount of each duty paid.

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III. Obligations on Payment

ART 515. - The duties on acts to be registered are paid: 1. By notaries, for the acts signed before them 2. By bailiffs and other persons able to make court orders and judgements, for act of their ministry. 3. By court clerks, for acts and court orders, except in the case provided in article 326, and for those signed before and received by registries. 4. By the secretaries of central Administrations and territorial communities, for acts subjected to the process of registration, subjected to the case listed in article 326. 5. The parties, for acts privately signed and for those signed out of Mauritania which must be registered. ART 516. The parties are jointly liable according to the Treasury for the payment of simple duties and penalties payable on judgments and court orders. However, the plaintiff is solely liable for tax if the judgment or order dismisses his claim entirely. Parties ordered to pay costs, where the judgment or court order allocates an allowance, pension, income or damages in accident matters, are also solely liable for taxes.

IV. Contribution to Payment ART 517. - Public officers who, according to the article 523, have on behalf of the parties, have proceeded with he deposits of the registration duties, may carry on with their payment according to the legislation related to the recovery of the costs of notaries and bailiffs.

ART 518. - The duties of civil and judicial acts affecting a transfer of property or usufruct of movables or immovables are at the expenses of the acquiring party. Those of any other acts paid by the parties who benefit from the acts, when there are no provisions stipulating otherwise.

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CHAPTER IV

GUARANTEES AND PRIVILEGES

ART 519. - For the recovery of taxes of any nature and fiscal fines provided for by this code, the Treasury has a general priviledge. The Treasury's priviledge is applied first on over movables and movable property belonging to the taxpayer wherever they may be. ART 520. - If the taxpayer is a governement employee, an employee, a supplier or an individual entitled to receive payments from the Treasury's account, the agent in charge of collection automatically collects the amounts due or provides an advice indicating the amount and the article on the turns (in french rolls) to the accountant of the place where the payment must take place. However, only a portion of the wages or salaries, allowances in the nature of family allowances not included, to be determined as follows, can be collected: - -15% on the bracket below 4 000 UM per

month; - 25% on the bracket between 4 000 and

16 000 UM per month; - 50% on the bracket between 16 000 UM

and 20 000 per month; - 100% on the bracket above 20 000 UM

per month. ART 521. - Employers, bankers, tenants, collectors, economists, notaries and other trustees and debtors of head of family, must upon receiving notice of third parties holding property claimed by a party other than the one from whom it has been received, notified by the accountants of the Treasury and fiscal administrations, to pay on behalf of the taxpayers and in the

amount of funds they must pay, or the amounts they have withheld, all or part of the tax payments owed by the taxpayers. The notice of party holding property, is requested by means of postal services using a receipt notice. Its enforcement is mandated despite any opposition which may be notified by other creditors. Any third party holding property claimed by another party who does not comply with the request of the Treasury accountant or the financial administration may be personally sued for his own property on the same account as the principal taxpayer. The payment receipts of the Treasury accountants or financial administration for the amounts legally owed are allocated to them in the accounts. When, after notification made out to the party holding property claimed, the taxpayer is no longer a debtor for the claimed taxes, the accountant shall withdraw his opposition. Such withdrawal is notified to the third party holding property and to the taxpayer respectively, by certified mail with a receipt notice. The provisions of this article apply equally to managers, administrators, directors or liquidators of companies for the taxes owed by this last one. ART 522. - When a trustee or a debtor of head of household must submit to several notices of a party holding property claimed by a third party, issued respectively by accountants of the Treasury and of the financial administration, he shall, in the event of insufficiency of funds, comply with the notices in proportion to their respective amounts.

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ART 523. - The privilege related to the taxe is without damages to any other rights that, as any other creditor, the Treasury may exercise as against the property of taxpayers. ART 524. - The provisions of articles 519 to 523 apply to taxes established for the territorial communities; however, the privilege created for the local taxes ranks immediately after the one created for the recovery of the taxes of the State. ART 525. - In the event of a business closing down, liquidation of property or judicial winding up, the Treasury is able to directly pursue with the recovery of its privileged debt on all of the assets to which its privilege relates; the privilege is on the amount of principal, plus interest for late payment related to the period preceding the declaratory court order. ART 526. - For the recovery of taxes of any nature and of the fiscal fines provided for by this code, the Treasury has a legal mortgage over all of the immovable property of taxpayers. Such mortgage ranks as at the date of its recording at the office of property conservation. It may only be recorded from the date a taxpayer incurs an increase or penalty for failure to pay [taxes].

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CHAPTER V

PROCEDURES

Section I

COMMON PROVISIONS APPLIED TO THE TAXATIONS WHICH COLLECTION

RESTS WITH THE TREASURY’S ACCOUNTANTS

I. Prosecutions

ART 527. – Are subjected to lawsuit : 1. Any taxpayer who has not, within the prescribed period, paid any taxes he owes, of any nature whatsoever, for the benefit of the State budget and of the territorial communities. 2. Any trustee towards the State budget and territorial communities who has not discharged his debt within the prescribed period and who cannot dispute the compensation. ART 528. - The Treasurer General, for all duties and taxes except the tax on turnover, the General Director of Tax Department for all taxes on turnover (TVA, TCA, TPS) alone have the power, each for matters concerning it, to authorise the lawsuit and issue a writ against the taxpayers, except in the case stated in 557. ART 529. - Only authorised lawsuit agents, commissioned by the government, and the registration officer, may generate proceedings with costs. In the prefectures, ad hoc servers may be appointed. ART 530. - lawsuit agents for duty purposes must carry their commissioning documents, they refer to them in their acts and shown present them upon request. They

are assisted at their request by the authorities having police powers ART 531. - There are three levels of lawsuit : 1st level: a summons to pay before execution; - 2nd level: Foreclosure of shops, boutiques or warehouses; - 3rd level: sale. The Recovery Notice (RN), made enforceable by General Director of Tax Department, is equal to a court order and authorise all the level mentioned above. The tribunals have jurisdiction to rule upon the intrinsic validity of acts of prosecutions The initiation by the taxpayer of an action before the tribunals shall not in any way suspend the recovery of the taxes. In addition to the penalties provided for above, General Director of Tax Department is empowered to put in place the following measures in the event of non-execution of the first level of proceedings (summons): - issue of a notice to parties holding

property claimed by third parties in accordance with the conditions and procedures set out in article 521 of this code;

- freezing of bank accounts, postal accounts and deposits with the treasury, until effective payment of the duties owed.

ART 532. - The accountant or lawsuit agent who wants to take action against a late taxpayer shall notify him by served summons

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at his home address or at the dwelling place of his representative. Such summons may be sent by mail with notice of receipt, for those taxpayers who have a known address. The taxpayer shall make himself available within three days. ART 533. - An original and a copy of the summons are prepared. In the case of absence or refusal of the taxpayer or his representative, the summons may be validly served at the office of the concerned administrative area which must ensure the notification thereof. ART 534. - Summonses are prepared by the lawsuit agents and initialled by the accountant. The original, which may be collective for all those taxpayers pursued on the same day and in the same place, refers to any executed summonses. ART 535. - 1. Three working days after the service, the lawsuit agent may proceed with the foreclosure of the shops, boutiques or warehouses. 2. The foreclosure, or the closure of the shops, boutiques or warehouses, is carried out according to the processes of the civil procedure code. A minutes of foreclosure or closure of the shops, boutiques or warehouses, is prepared. 3. For the foreclosure or closure of shops, boutiques or warehouses, the lawsuit agent is assisted at his request by the authorities having police powers. The trader is designate as legal guardien. A minutes is prepared. ART 536. - In the event of an obvious insolvency, a statement of insolvency is prepared on loose paper and is enclosed with the statement of irrecoverable assessments.

ART 537. - Sales may only occur with a special authorisation of the General Treasurer or General Director of Tax Department at the express request of the accountant in charge of the recovery. The General Treasurer, or the General Director of Tax Department, informs the Finance Minister of his intention to proceed ith the sale. The Finance Minister may refuse that the sale be carried out within seven days after being notified. ART 538. - The sale may only take place eight days after the foreclosure or closure of the shops, boutiques and warehouses. In emergency cases, such period may be reduced to three days upon special authorisation of the Finance Minister. The sale is carried out by the lawsuit agent in the form prescribed by the Civil Procedure Code for sales made by the judicial authorities. It leads to creation of a a minutes. ART 539. - The accountant shall be present or represented at the sale and shall immediately give a receipt, without damages to subsequent restitution if need to be.

II. Objections - Claims – Protective Measures

ART 540. - If at the time when the lawsuit agent comes forward to effect the foreclosure or closure of the shops, boutiques and warehouses, the taxpayer discharges himself, the foreclosure or closure of the shops, boutiques and warehouses is suspended and a temporary or final receipt is provided to him. ART 541. - The foreclosure or closure of shops, boutiques or warehouses is executed regardless of a dispute.

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ART 542. - The dispute generated by the foreclosure and by its creditors are validly made to the accountant foreclosing or the lawsuit agent. ART 543. - The requests for recovery of seized objects, or objects stored in the closed shops, boutiques or warehouses, are made to the legal guardian and declared to the forclosing and to the foreclosed. They must be followed by a submission of a statement of case with all supporting documents, with the General Treasurer or General Director of Tax Department, depending on the proceedings they each may authorise. Failing to come to a decision at the end of the deadline of one month, as in the case where he is not satisfied by the decision, the claiming party may submit an appeal with the Tribunal of first instance. While waiting for the decision to be handed down, all protective measures are taken by the lawsuit agent. ART 544. - When the lawsuit agent cannot carry out his mission because the doors are closed, or their opening is refused, he appoints a guard at the door and immediately advises to the judicial authority who authorises the opening of the premises. The judicial authority assists with or is represented at the opening and the seizure; it signs the seizure report mentioning the incident. ART 545. - Protective measures are also taken after agreement of the General Treasurer or General Director of Tax Department, each in matters which concerns him, when a lawsuit agent or an accountant is informed that objects constituting the security for the debt are secretly being taken and that there is reason to fear their disapearance.

III. Prosecution Fees - Accountability

ART 546. - 1. The rates for lawsuit costs are fixed as follows - Summons 3% - Foreclosure 5% - Checking of foreclosure 3% - Notification of sale 2% - Posters 1% - Checking before sale 1% - Report of sale 1% In the case of a foreclosure interrupted by an immediate payment, the rate of foreclosure seizure costs is reduced to 1%. The same applies in the case where the taxpayer discharges [his liability] within the period of one working day from the foreclosure. These costs include a minimum of 40 UM for the summons and 200 UM for the other lawsuit acts. 1. The rebate rate to be paid to the lawsuit agent is fixed by a court order. ART 547. - Each act of lawsuit privided by the lawsuit agents shall, in order to avoid cancellation, state the amount for which it was taxed. ART 548. - Any foreclosure or sale inconsistant with the procedures of this present code leads to a lawsuit against those who carried it out and the costs shall be at their expenses. ART 549. -– In the event of phisical or verbal assault against a lawsuit agent, the agent notifies the head of the administrative area and prepares a report (proces verbale). The administrative authority declares the facts before the tribunals.

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IV. Limitation of Administration Actions in

regards to Tax Collection ART 550. - The amounts due by taxpayers, for collected taxes on turns(in french rolls) or forclosure are assigned on their behalf after a period of four years from the beginning of the recovery for the turns (in french rolls) or for the foreclosure pertaining to the property title or from the last notification of a party holding property claimed by a third party, or of an act of lawsuit.

Section II

TAX ON TURNOVER, TAX ON CONSUMPTION AND OTHER INDIRECT TAXES - STATEMENT OF BREACHES

ART 551. – Any breach to this code in regards to the tax on turnover, consumption taxes and other indirect taxes, may be established by any method of proof of common law, or may be ascertained using a minutes prepared by any officers of the Criminal Investigation Department, Tax agents and Customs agents.

Section III

REGISTRATION AND STAMP

ART 552. - Tax and public domaine agents are authorised to seize any acts, registers, personal property or any document inconsistent with the laws on stamping to attach them to the reports they are preparing, unless the parties in breach agree to sign the said minutes or to pay immediatly the fine incurred and the stamp duty. ART 553. - When the price or evaluation used as the base for the collection of the proportional tax seems less than the true market value of the transferred property, the Administration has the ability, in the absence of an joint agreement and concurrently with the procedures laid out in article 474, to request a specialist appraisal

from the Tribunal of first instance in the area where the property is located. ART 554. - The transfer of immovable property, businesses or goodwill is completely established, for the purposes of registration duties and lawsuit for payment against the new owner, either by the recording of his identity on the acts of taxes due and payments made by him pursuant to the act, or pursuant to leases or any other acts signed by him and leading to a presumption, on its own authority, to a property right or a right of usufruct. ART 555. - The use of a building pursuant to a rental title is also completely established by the payment of taxes set to the tenant. ART 556. - When it is necessary to pursue recovery against the property of the taxpayer, the Director of Registration establishes an individual or collective collection title made enforceable by the Finance Minister. Such collection title is notified using an express mail with a reecipt notice, or deliver hand to hand. The notification is issued by certificate if it is regarding a collective collection title ART 557. - Ten days after notification of such title, the Director of Public domaine may, in the absence of payment or claim with guarantees made according to the conditions set out in article 565, generate an obligation against the taxpayer by issuing a summons provided by the Registration officer. The lawsuit are subject to the rules set out in articles 531 to 549.

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CHAPTER VI

LITIGATION COURT

Section I

FIELD OF THE LITIGATION COURT ART 558. - Claims relating to taxes, tax payments, duties, taxes and penalties of any nature, established or recovered by the Tax agents, fall within the contentious jurisdiction when they seek to obtain the adjustments of errors made in the taxable base or the calculation of the tax, or the benefit of a right resulting from a legislative provision or a regulation. The provisions of this chapter do not apply to law disputes in regards to the recovery of the taxes.

Section II

CLAIMS

ART 559 Contentious claims are made to the General Director of Tax Department by the taxpayer, his legal beneficiaries, his duly appointed agents, his legal representatives who justify their abilities, or by any person notified to pay a taxes he does not believe is owed. - For the taxes issued by the territorial communities, the request as to be referred to the mayor. The public or ministerial officers referred to in article 515, paragraphs 1 to 3, are empowered to introduce, without authority order, a claim related to any taxes, duties or taxes that they are under an obligation to pay pursuant to such article. ART 560. - The claim period is twelve months from : 1. Either the begining of recovery of the turns (in french rolls) or of the Foreclosure statement, of the notification of a

collection title, or of the payment of the disputed taxes, if such taxes did not generate the establishment of a turns (in french rolls) or Foreclosure statement or a notification of a collection title. 2. Or of the creation of the event justifiying the claim. ART 561. - Claims shall be null and void unless they: 1. Are individual; however, taxpayers taxed collectively and the members of companies who dispute the taxes being charged to them may draft a collective claim. 2-Relate to only one rate. 3. Refer to the tax disputed and the account number of the taxpayer. 4. Contain a summary of the grounds and the conclusions. 5. Are signed and dated by the author. 6. Are enclosed with either a copy of the taxation notice or an certificate of the turns (in french rolls), or with a copy of the receipt provided by the Treasury Department. ART 562. - The Finance Minister, or his subordinate, rules on the claims within a period of six years (c’est 6 mois ou 6 ans) following the date of their submission. The taxpayer is notified of the decision and the notification contains, in the case of total or partial rejection of the claim, a summary of the grounds. The mayors referred in article 559 paragraph 2, make also decisions on contentious claims in the a period of six months.

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Section III

APPEAL TO THE COUNTY COURT

ART 563. - The decision of the Finance Minister or his subordinates may be appealed, within a period of two months from the notification of the decision, before the Tribunal of first instance. Any claiming party that has not received notification of the decision of the Finance Minister or his subordinates during the six months following the date of submission of the request may take the claim to the Tribunal of first instance; he has for that purpose a period of two months from the date of end of the deadline of the six month period referred to above. ART 564. - The appeal period is extended for long distance purposes for claimants who reside outside Mauritania, according to article 108 of the civil procedure Code.

Section IV

PAYMENT PLAN

ART 565. - The taxpayer who, by a contentious claim, disputes the grounds on the tax amount he has been taxed, may stay the payment of the contested part of such taxes if he makes such request in his claim and fixes the amount or specify in detail the base of the rebate he is claiming. He accountable, for that purpose, to provide the appropriate warranties to ensure the recovery of the taxes. Such warranties are made by deposit to a holding account of the Treasury. Failure to provide warranties, the taxpayer who has requested the benefit of the provisions of the previous paragraph may be liable to a lawsuit for the disputed part of the taxes.

However, and until such time as a decision has been made by either the Finance Minister or his subordinates, or by the Tribunal of first instance, no mandated sale may be ordered. The hold on prosecutions may be decided following a rebate proposal duly signed by the General Director of Tax Department 556. ART 566. - The Finance Minister or his subordinates may at any time order the automatic rebate or restitution of overpaid taxes or portion of taxes.

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CHAPTER VII

EQUITABLE RELIEF COURT

Section I

FIELD OF THE EQUITABLE RELIEF COURT

ART 567. - The voluntary jurisdiction deals with claims seeking the discount or rebate of duly established direct taxes, and the mitigation by way of discount, rebate and transaction of fiscal fines or tax increases. It also makes decisions on claims from the accountants of the Treasury in charge of the recovery of direct taxes requesting the admission as non-value of uncollectible rates or requesting a acquittal of liability. ART 568. - No public authority may grant a discount or rebate of registration, stamp or property publication duties, of the tax on turnover, of consumption taxes or other indirect taxes.

Section II

REQUEST FOR DISCOUNT OR

REDUCTION OF DIRECT TAXES

ART 569. - Any taxpayer who, as a result of financial difficulties or neediness, finds it impossible to discharge his liability towards the Treasury, has the right to request a tax discount or rebate. The tax remission or reduction cannot be granted because of the temporary lack of prosperity of industrial or commercial businesses. ART 570. - The requests for tax discount or rebate are signed in the form provided for by article 559 for contentious claims, but no period is prescribed for their submission. They are addressed to the General Director of Tax Department.

If is regarding taxes related to the community it is referred to the mayor. The finality of any discount or rebate granted may be subject to the execution of conditions mandated to the claimant.

Section III

REQUEST FOR DISCOUNT OR REDUCTION OF PENALTIES

ART 571. - The following may be granted upon the taxpayer's request: 1. Discount or rebate of fiscal fines or of tax increases, when such penalties and the taxes they relate to can no longer be subject of appeal (or contentious recourse). The finality of the discount or rebate granted may be made subject to the realisation of conditions mandated to the claimant. 2. A rebate on the taxes or increases by means of transcation, when such penalties and the taxes to which they relate to are still liable to a an apeal (or contentious recourse) within the framework of adjustment procedures, the taxpayer have the ability to introduce a request a transaction before the beginning of recovery of the penalties and duties recalled. The request shall be received by the General Director of Tax Department within the period of 8 days awarded to the taxpayer by article 474 of this code, to provide his acceptance or observations. When a transaction is completed, no appeal procedure may be introduced or start over by the taxpayer to dispute the penalties and duties stated in the transaction act.

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In the event of the total or partial incompliance with the obligations the taxpayer is liable for, the transaction becomes null and void. The Administration then continues the total and immediate recovery of the penalties and duties legally payable. 3. The requests for discount or rebate provided in article 492 or for the costs of prosecution are made to the General Director of Tax Department and to the General Treasurer each for they are assigned to, through the through the accountant holder of the roll.

Section IV

IRRECOVERABLE QUOTAS

ART 572. - The main accountant in charge of the beginning of the recovery, may each year from the year following the beginning of the recovery through the roll or the statement of liquidation, request that the uncollectible rates be declared bad debts. Uncollectible rates are those rates for which the recovery was unable to be made as a result of the absence, death or insolvency of the taxpayer. ART 573. - The General Treasurer makes the requests for the admission of uncollectible rates as bad debts to the General Director of Tax Department by means of individual or collective statements. Such requests are enclosed with a summary of the grounds of the non-collection (in french irrecoverability).

Section V

RULES OF QUALIFICATION ART 574. - The ability to rule on requests for discount or rebate of direct taxes, on the requests for rebate through the discount, reduction and transaction of fiscal fines or the increase in taxes, and on the requests for admission of uncollectible rates as bad debts, rests with the General

Director of Tax Department, when the amounts; the subject of the request do not exceed 100 000 UM per payment. The ability to rule on requests for the rebate of tax increase of 10% provided in article 492 or on the costs of prosecutions belongs to the General Treasurer when the amounts ; the subject of the claim do not exceed 100 000 UM. Above such limit, as well as in the case of an appeal of the General Director of Tax Department or the General Treasurer decision, the ability to rule rest with the Finance Minister.

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CHAPTER VIII LIMITATIONS

Section I

SPECIFIC PROVISIONS

I. Direct and Equivalent Taxes ART 575. - 1. Any total or partial oversight noted in the tax base of direct taxes and similar duties, as well as errors made in the establishment of taxes, the application of rates or the calculation of payments may be adjusted up until the end of the third year following the one taken into account for the taxes due. 2. Any error made, either on the nature of the applicable taxes, or the place of taxation with respect to any one of the duties and taxes referred above may, without any harm to the period prescribed in the previous paragraph, be adjusted up until the end of the year following the year of the decision declaring the acquittal of the initial taxation. 3. Any oversight or deficiency of taxation revealed either by prosecution before a criminal tribunal or by a contentious claim, may, without harm to the general recovery period prescribed in the first paragraph, be adjusted until the end of the year following the decision that closes a case.

II. Tax on Turnover - Tax on

Consumptions and Other Indirect Taxes ART 576. - In matters of the tax on turnover, consumption and other indirect taxes, the right to recovery that the Administration has may be exercised up until the end of the third year following the one during which the taxable operations were carried out.

III. Registration - Stamp and Real Estate Advertising

ART 577. - 1. The repeated action that the Administration has in regards to the registration duties, stamp duty, property advertising duties, may, subject to the special provisions referred to in paragraph 2, be exercised up until the end of the third year following the one during which the payability of such duties and taxes was sufficiently revealed by the registration of an act or of a declaration without it being necessary to have recourse to further research. 2. In regards to the special tax on insurances, the Administration's recovery action may be exercised within the period set out in article 576. ART 578. - The date of privately signed act may not be inconsistant with the Treasury for the prescription of rights and penalties incurred, except if the date of such act has become certain by reason of the death of one of the parties, or otherwise.

Section II

COMMON PROVISIONS ART 579. - Where a shorter prescription is not enacted, the duration of the exercise of the right of recovery of the Administration is limited to ten years from the day of the generating fact occurred, subject to the provisions of article 578, where applicable. ART 580. – the prescription are interrupted by adjustment notifications, by declarations or minutes notification, by any acts stating the recognition of taxpayers or

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by any other comon law interrupting acts. The notification of a collection title also interrupts the prescription running against the Administration and substitutes the decennial prescription. ART 581. - Fiscal fines punishing any breaches to the provisions that rule the taxable base and the recovery of any tax established by this code are prescribed for the same period and in the same conditions as the simple and corresponding duties. Any other fiscal fines are prescribed at the end of the third year following the one during which the breaches were made.

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CHAPTER IX COMMUNICATION DUTIES

Section I

COMMUNICATION DUTY TOWARDS THE PUBLIC INSTITUTIONS

ART 582– State administrations and territorial communities as well as those of companies granted or controlled by such public groups, and any establishments or organisations whatsoever subject to the control of the administrative authorities, cannot claim professional confidentiality against the agents of the Taxation Services with at least a controler rank and who, to establish the taxes imposed by this code, requests from them the communication of any work documents that they have. However, individual information of an economic or financial order gathered during surveys carried out by the Statistics Services may not in any case be used for the purpose of fiscal control. Administrations supplying such informations of that nature are not to obey the rules mentioned in the previous pararagrph. ART 583. - The holders of registration of civil status, those of tax rolls and any others in charge of archives and submission of public titles are must communicate the same, without moving them, to the agents of the Fiscal Services, upon any requisition, and to let them take, free of charge, the information, certificates and copies that are necessary to the interests of the Treasury. These provisions also apply to notaries, bailiffs, court clerks and secretaries of the central and territorial administrations, for the acts they hold. ART 584. - The judicial authority shall inform the Finance Administration any indication it may gather in order to assum any fraud committed in fiscal matters or of any operation whatsoever with result of

defrauding or compromising taxes, whether it be in a civil or commercial court or criminal information, even closed on the basis of no grounds for prosecution.

Section II

COMMUNICATION DUTY TOWARDS

TAXPAYERS - TIMELINE FOR PRESERVATION OF DOCUMENTS

ART 585. (nouveau). – To enable the taxable base and the tax control, recovery and taxes the subjected to this code, Tax agents have the right to obtain from taxpayers the immediate communication of the book record prescribed by the Trade Code as well as any accounting documents, receipt and expenses of which the company is ordered by applicable regulations. Likewise, banks, financial institutions, insurance companies, and generally any individuals or legal entity holder or detaining the money or property for the account of a third party, are under an obligation to supply, on the spot or by correspondence, upon the request ot a tax agent or the Treasury agent, with at least the rank a Controller, all information related to the accounts of the taxpayers, to the opening up of credit and to allocations of currency granted to them. ART 586. The refusal to immediate communicate of information referred in the article 585 is noted in a report and punishible with a fiscal fine from 100 000 UM to 1 000 000 UM and by the clothing of 1 to 3 days of the banks, financial institutions, insurance companies own by individuals or legal entity refusing the immediate comunication of information. The refusal to communicate by correspondence any information referred to in the 2nd paragraph of article 585 is

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followed by a formal notice sent by certified mail with acknowledgment of receipt. If, upon the end of deadline period of 15 days after receipt of that letter, the requested communication is not obtained, a fiscal fine of 100 000 UM is given. This fine is increased by 50 000 UM per month or portion of month late. ART 587. - The documents referred to in article 585 shall be kept for a period of six years, from the date they were created. ART 588. - The failure to keep any documents during the period set by article 587 is punishible by a fiscal fine of 25 000 UM.

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CHAPTER X

BUSINESS CONFIDENTIALITY

Section I

DIRECT AND EQUIVALENT TAXES ART 589. - shall comply with professional confidentiality in the terms and conditions set out in article 370 of the Penal Code and subject to sentences included in the said code, any individual required, on account of his duties or ability, to intervene in the assesment, the collection or the dispute of taxes referred to in Book 1, 1st part, title 1 of this code. However, such provisions shall not stand in the way of the exchange of information with the financial administrations of the contries that have concluded with Mauritania an agreement for mutual assistance in fiscal matters. ART 590. - Taxpayers are only authorised to obtain certificates of the tax and duties rolls referred to in Book I regarding their own taxation.

Section II

REGISTRATION

ART 591. - The Registration officer may only deliver certificates of his registers or copies of acts submitted upon a judge order when the request is not made by the parties to the contract or their assignees. He is authorised to collect: -20 UM, per year of research, but the remuneration shall in no case exceed 400 UM. - 20 UM, per roll of paper size 21 x 29, for each certificate of registration or act submitted, in addition to the size stamp; any roll started is owed in full.

Section III

COMMON PROVISIONS ART 592. - When a Regular claim is made by the Administration against a taxpayer and legal information has been revealed, Administration agents are untie from to the professional confidentielity before a judge asking them on the facts being the subject of the claim. ART 593. - Any jurisdiction holding an act related to a monetary penalty may, if it so deems, order both the parties and the Fiscal Services to communicate any documents of a fiscal matter in order to solve the dispute. For the application of this article, the Fiscal Services are not subject to professional confidentielity. ART 594. - The produced declarations and the valuations provided by taxpayers for the assesment or the payment of any one of the taxes and duties in this code are taxed to them, if they were created prior to the tax point of the debt, for the calculation of the compensation or damages the taxpayers claim against the State or the territorial communities.

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TITLE 3 INDIRECT TAXES

CHAPTER I VALUE ADDED TAX- COMMON PROVISIONS

Section I

Field of Application of the Tax

I. Taxable Operations

ART 177.B. - 1 - Operations falling within the province of economic activities which constitute an import, the delivery of goods or the provision of services, carried out on Mauritanian territory, for valuable consideration, by a party liable to tax 2. Industrial, commercial or artisanal activities are deemed to be economic activities. 3. The followings are considered taxable operations : -Importations: by importation it means the passing through from customs in Mauritania to consumption, whether it is dealing with goods coming directly from abroad or placed until then under a suspensive customs regime. - Sales: sale means any operations having the status of transferring to a third party, the ownership of any property; - Building constructions: building constructions means any work carried out field involved in the construction, maintenance and repair of buildings and property works, public works, metal construction works, demolition works, works ancillary to or preliminary to property constructions; -The services rendered: services rendered means all economic operations other than those enumerated above, with counterpart monetary payment or payment in kind; - The deliveries of assets that a person liable to tax makes to himself for his own needs or those of his business; - The activities of non–commercial fields.

4 - An operation is said to be done on Mauritanian soil. - when it is regarding a sale when it is effected in accordance with the conditions for the delivery of the goods in Mauritania ; - when it is regarding rendering of services: when the service rendered, the right transferred or the object rented are re-used or exploited in Mauritania. ART 177.bis. - As an exception to the provisions of article 177.B, the operations effected by banking establishments, financial establishments, loan organisations, insurance and re-insurance companies, do not fall within the field of application of the value added tax.

II. Definition of the liable parties ART 177.Ter. - All legal entities or individuals subject to the tax regime on actual industrial and commercial profits or non-commercial profits, are subject to the value added tax. Except in the case of transfer or supension of activity, the application of the value added tax regime is permanent. individuals who have acquired property free of the value added tax become liable for the tax or the remainder of the tax payable, when one of the conditions upon which the exemption or the reduced rate was granted, is not or is no longer satisfied. Parties liable to tax who sell as is any products received free from the tax or having given rise to the discount provided for in article 181 below, by reason of their final destination, must pay the tax avoided if the products acquired did not in fact reach the destination which justified the exemption granted or the rebate made.

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The tax is also due on the sale price, in the event of re-sale as is of non-exempt products, which for any reason whatsoever were not in fact subject to the value added tax at the time of their importation, manufacturing or their first sale in their original condition. ART 177.Quater. – can chose the option to be subject to the Value Added Tax: - taxpayers who satisfy the conditions for being taxed according to the actual regime, even if the turnover realised is below the limits set in article 7 of this Code. Such taxpayers shall keep complete accounting records according to the prescribed General Mauritanian Accounting Plan and be registered in the National Directory of Taxpayers according to the rules set by the actual tax regime. They shall comply with the obligations set out in article 14. The option, which is total and irrevocable, is exercised at the request of the taxpayer. It takes effect from January 1st of the year following the year during which it is declared to the tax services.

III. Exemptions ART 177.Quinquiès. - The following are exempt from the value added tax: 1. the operations carried out by individuals subject to the estimated tax regime with respect to industrial and commercial profits. 2. medical act except hospitalisation expenses; 3. Sales by administrative services or organisations, except public intitutes of an industrial and commercial nature. 4. operations for the repair and alteration relating to: -aircraft intended for airline companies whose services to or from foreign countries represent at least 80% of all of the services they provide; - the aircraft of the national airline company; - buildings for the purpose of maritime navigation and ships intended for

navigation on international rivers, and registered as such; 5. sales to the airline companies referred to in 4, of products intended to be incorporated into their aircraft. 6. the sale of goods or products intended for the refuelling of the ships or aircraft of the airline companies referred to in 4.; 7. income from the composition and printing of newspapers and periodicals, excluding income from advertising, and the sales of the same newspapers and periodicals; 8. operations having as their purpose the transfer of ownership or of the use of businesses or goodwill which are subject to the process of registration; 9. operations carried out by insurance or re-insurance companies or firms, whatever the nature of the risks insured, and which are subject to the only tax on insurances; 10. operations carried out by banking institutions, financial institutions and credit organisations which are subject to the tax on services rendered; 11. Air transportation with a foreign destination; 12. Transport operations carried out by public carriers of travellers or goods recorded in the patents register in that capacity and holders of the required authorisations; 13. Sales to navigation companies and professional fishermen of products intended to be incorporated in the ships, as well as equipment and nets for commercial fishing. 14. Breads and bakery and pastries products ; vegetables, meat, fish ; shellfish and seafood, in the condition that these food product are fresh or dried up, dried salted, smoked: potatoes seeds, seeds, spores, fruits, bulbs, oinions, tubers to sow, grafts, roots in in vegetative rest, in vegetation or flowers, other plants and live roots, including cuttings and small grafts, the meat of the mushrooms(the mycelium), the fresh fruits usual intended to be consummed as is except colas, ice water and electricity provided in a eight of 8m3 and 150 kw/h per month and per consummer (16 m3 and 300 kw/h per bill if it is based on 2 months) as well as public fontaines providing low income families ; the inside

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production of milk, pasta products, couscous, flower and cookies. 15. For the import of the products and goods mentionned in appendix (LF/2008-001)

Section II

TAXABLE BASE

ART 178. - The tax base is set up with : 1) The value defined by the customs legislation for imports including the taxes and levies of any nature collected by customs; -all the amounts, values, goods or services received or to be received by the seller or the service provider in exchange for the delivery of the goods sold or for the provision of the services; -the amount of the transactions, accounts or invoices for building construction -the cost price of assets for deliveries of assets to oneself; 2) The duties, taxes, and levies of any nature except the Value Added Tax itself; 3) The incidental costs of the delivery of goods and services rendered such as commissions, interest, packaging costs, transport costs and insurance costs requested from the clients, even if they are separately invoiced to the clients. ART 178.bis. - Are excluded from the taxable base: 1) Cash discount, discounts, rebates, refunds and other price reductions granted directly to the clients; However the rebates cannot be deducted from the seller's taxable base if it is a part of the payment of a service provided by the debtor to the creditor or if it does not in fact and in its exact amount benefit the purchaser; 2) The amounts reimbursed to intermediaries who report to their principal the disbursements made on their behalf and justify to the Tax Department the nature and exact amount of such disbursements; 3) Provided that they are mentioned separately in the invoices and do not generates any invoicing of the value added tax, the amounts collected upon the delivery

of packages on which there is a deposit may be excluded from the taxable base. They shall, however, be incorporated into it when the packaging has not been turned in according to deadlines that are customary in the profession; 4) Compensation which genuinely has the characsteristcs of damages.

Section III

Tax Event- Payability

I. The Generating Fact ART 179. - The generating fact is defined as any event that leads to a debt to the State; the payability is the quality, acquired at a particular point in time by such debt, of being able to be recovered by the Treasury without delay through any legal recourse. ART 179.Bis. - The generating fact on the value-added tax is set as a/ For imports: by the crosssing of customs; concerning goods falling under one of the suspensive tax regimes, as well as under the regime of bonded goods by the customs, the generating fact chip in at the time of the setting consumption of goods b/ For sales, by delivery. Delivery means the handing-over to the purchaser of the goods being the subject of a contract; c/ For the deliveries of goods leading to the setting up of successive accounts or payments, except those relating to goods sold by the deferred payment system, or a lease-purchase, by the end of the deadline to which such accounts or payments relate to. d/ For goods delivered by taxpayers to themselves, by their first use or start up service; e/ For construction works, by the carrying out of the works. When such works leads to the establishment of successive accounts or payments, the generating fact is said to chip in upon the end of the deadline to which such accounts or payments relates to ; f/ For the services rendered : by the completion of the services.

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II. Payability

ART 179.Ter. - The value added tax is payable: a. For imports, at the time of setting them into consumption on Mauritanian soil b. For sales, deliveries, including deliveries to oneself, at the time of realisation of the generating fact; c. For services rendered, at the time of receipt of the price or of the instalments. In the case of discount on a trade draft (c’est quoi un effet de commerce ????) the tax is payable at the maturity date of the acts. Deliveries of intangible property are considered as a provision of services. d. For construction works, at the time the works are carried out, or if it occurs first, at the time of receipt of the instalments or of the remuneration price.

Section IV

RATE OF THE VALUE ADDED TAX

ART 180. (nouveau). – The tax rates for value added tax are the followings : The regular rate of 14% and the rate of zero. These rate are applied to the taxable base without the value added tax. The regular rate concerned all the products execpt those listed in article 177 quinquiès because exempt from tax. The rate zero concernes the exportation realised by parties liable to tax. ART 180.Bis. - The provisions of this article are repealed (Order 2001.09 – of January 09th, 2001 pertaining to the Finance Bill for the Year 2001). ART 180.Ter. – The provisions of this article are repealed (Order 2001.09 – of January 09th, 2001 pertaining to the Finance Bill for the Year 2001).

ART 180.Quater. - The provisions of this article are repealed (Order 2001.09 – of January 09th, 2001 pertaining to the Finance Bill for the Year 2001).

Section V

Deduction System

I. Principles ART 181. - The Value Added Tax that has strained the elements of the price of a taxable operation, is deductible from the Value Added Tax applicable to such operation. The right to deduct is created when a the taxpayer become liable to tax paiment. For that purpose , the party liable to taxation authorised to deduct from the amount of taxed payable on their operations the Value Added Tax that they paid at the time of purchase or import. 1. of raw materials and similar products included in the production of taxable products but not included in the finished, are destroyed or lose their specific qualities during the course of one production operation only for the said products; 2. of goods intended to be re-sold within the context of a taxable operation; 3. of services coming into the cost price of operations giving the right to a deduction;; 4. of movable, immovable property and of services acquired for the needs of the business as investments and general expenses. The parties liable to tax can deduct the Value Added Tax related to deliveries to oneself of the property referred to in paragraphs 1, 2, 4 above. In the case of liability to the Value Added Tax pursuant to the provisions of article 177.3, the new parties liable are allowed to deduct the Value Added Tax that has restrained the cost of the goods in stock at the date from which operations subject to the Value Added Tax intended for the execution of taxable operations, are carried out.

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Investment assets leading to a a right to deduction are recorded in the accounting records of the business for their purchase price or cost price less the deduction for which they give right to. The depreciation related to such property is, for the taxable base for the tax on profits, calculated on the basis of their purchase price or cost price less the deduction which such property gives right to. ART 181.Bis. - The exportation operations of taxable products within the country gives a right to deductions in the same conditions as the operations subject to the value added tax. II. Exclusion from the right to deduction

ART 181.Ter. – Are not deductible taxes applied to goods or services used by third parties, by the management or staff of a business, such as housing or accommodation, settelment expenses, restaurant or entertainment expenses, or any expense having a direct or indirect link with travel or residency. However, this exclusion does not relate to work clothes or protective clothing, the premises and materials assigned to the collective satisfaction of the staff needs on the workplace, as well as the free accommodation on the work place of the employees specifically in charge of the surveillance or maintenance of such places. ART 181.Quater. - Do not give the right to a deduction vehicles or machine, of any type whatsoever, created or equipped to transport people or for mixed uses, which constitute an asset or, if not, which are not intended to be re-sold in new condition. The same applies to constitutive elements, spare parts and accessories of vehicles and machines, however this exclusion does not relate to:

- road vehicles including, in addition to the driver's seat, more than eight seats and are used by businesses for the exclusive transport of their staff. ART 181.Quinquiès. – Are not tax deductible buildings other than centers and premises for industrial, commercial, artisanal or professional use. ART 181.Sexiès. - Are not deductible taxes applied to transferred property and services rendered free of charge or at a price considerably lower than the cost price, as commissions, wages, bonuses, rebates, discounts, gifts, regardless of the beneficiary’s position except in the case of an advertised objects of very little value. ART 181.Septiès. - Personal property other than those with the nature of commercial equipment or office equipment do not give the right to a tax deduction. ART 181.Octiès. - The operations of products exportation not taxable in the country do not give the right to a deduction. ART 181.Noniès. - Services of any nature related to goods, products or merchandise excluded from the right to deduction do not give rise to a right to deduction. III. Limitation of the right to deduction

ART 181.Deciès. Parties liable to tax who do not exclusively carry out operations not related to any tax deductible activities are allowed to deduct the Value Added Tax applied to the goods and services they acquire or that they deliver to themselves within the following limits: a/ when such goods and services contribute exclusively to the execution operations leading to a tax deduction, the tax they are liable to is then deductible;

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b/ when they contribute exclusively to the execution operations that do not lead to a tax deduction, the tax they are liable to is therefore not deductible. c/ when their use results concurrently in the execution of operations some of which leads to a deduction and others that do not lead to a deduction, a portion of the tax imposed upon them is deductible. The portion referred to above is equal to the amount of the tax multiplied by the ratio between: -the annual amount of income relating to operations leading to a deduction (numerator); - and the annual amount of products of any nature excluding any transfers of elements of fixed assets, investment grants, insured amounts not representing the counterpart of an operation subject to the value added tax, and disbursements (denominator). This ratio expressed as a percentage is referred to as a proportion; it is rounded up to the next unit. Income and revenue are inclusive of all costs, duties and taxes, except the Value Added Tax itself. The amount of deliveries to oneself is excluded from the terms of the ratio. ART 181.Undeciès. - The proportion provided for in the previous article is temporarily determined based on the income and revenue realised during the previous year or, for new taxable parties, based on the provisional income and revenue for the current year. The final proportion amount is determined at the latest on April 15th of the following year. The deductions made are consequently regulated during the same period. ART 181.Duodeciès. - When the final proportion related to each of the four years following the acquisition or the first use of property representing an asset varies by more than five points against the final

proportion witheld to realise the initial deduction, either a repayment is made, or an additional deduction of a portion of the tax initially mandated on the asset made. Such portion is equal to one fifth of the difference between the product of the tax mandated on the property by the final proportion of the year of the acquisition and the product of the same tax by the final proportion of the year under consideration. ART 181.Terdeciès. - When an immovable representing an asset is transferred before the commencement of the fourth year following the year of its acquisition or of its first use, the liable party shall repay a portion of the tax initially deducted, corrected if need to be by the adjustement prescribed in articles 181.11 and 181.12 above. Such portion is equal to the amount of the tax actually deducted less one fifth per calendar year or part of calendar year passed since the date of acquisition or of first use of the concerned asset. ART 181.Quaterdeciès. - The provisions of articles 181.10, 181.11, 181.12 and 181.13 above apply to taxpayers who stop their activity or are no longer subject to the Value Added Tax. ART 181.Quindeciès. - For the application of articles 181.10, 181.11, 181.12 and 181.13, the year during which the acquisition or the transfer of property, the beginning or suspension of activity or the party becoming no longer subject to the tax, is counted as a full year. IV. Application Methods of the right to

deduction ART 182. - The deduction of the tax is carried out by charge (or withheld) on the tax owed by the business for the month during which the right to a deduction arose.

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In the event of oversight, it shall be carried out at the latest on April 15th of the following year. ART 182.Bis. - The right to a deduction arises upon the import of goods, their acquisition, their delivery to oneself, or upon the completion of the services. Nevertheless, to be deductible, the tax shall: 1°/ if it is in regards to import, appear in the declaration of the release to the consumption market or any other equivalent document provided by the customs' services; 2°/ if it is in regards to purchase or provision of services, be specifically mentioned by the seller or the service provider on the invoice or the importation declaration duly prepared, within the meaning of article 184.6. For deliveries to oneself, the tax they are liable to is only deductible from the tax due for a particular month if such deliveries appear in the operations taxed on the same month. 3°/ Dated for twelve months the payble amount for TVA (value added tax) can not be postponed more than twelve months. ART 182.Ter. - If the amount of the deduction authorised exceeds the amount of the payable tax on any particular declaration, the excess may be witheld from the payable tax on the account of a subsequent declaration or declarations. No reimbursement is authorised, except for exporters and businesses that are no longer liable to tax. The excess unused payment represents a tax credit that can e witheld from the Value Added Tax due on the account of the following instalments or tax periods.

ART 182.Quater. - The reimbursement extension of imports equipment within the framework of investment and activities other than exports shall be fixed by decree of the Finance Minister. ART 182.Quinquiès. - When a party is no longer liable to tax the tax credit he has for tax deduction is witheld as a priority from the amounts which he is debtor on the account of other duties and taxes. Any excess deductible tax credit whose deduction was unable to be carried out may be reimbursed in full.

Section VI

Specific Systems

I. Oil Products ART 183. – Petroleum oils or bituminous minerals, petroleum gases and other gaseous hydrocarbons are subject to the Value Added Tax upon their setting into consumption according to the customs legislation. Subsequent operations realised on the domestic market are exempt from the tax. The taxation regime on the Value Added Tax on such petroleum products, as defined above, does not lead to any right to tax deductions.

II. Second-Hand Goods

ART 183.Bis. – Are considered second-hand within the meaning of the domestic legislation; goods that have been used before and are likely to be re-used in the same condition or after repairs. ART 183.Ter. - The release to the consumption market of second-hand imported goods gives rise to the collection of the Value Added Tax in the conditions set out in the applicable customs legislation. Sales of second-hand goods made by traders of second-hand goods are subject to the

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Value Added Tax according to the common law conditions; however, such traders may chose the payment of the Value Added Tax on the difference between the sale price and the cost price when the goods were purchased from parties not liable to tax.

III. Travel Agencies ART 183.Quater. - For mediation operations carried out by travel agencies and tour tourists organisers, the taxable turnover is, in the event of an option, the difference between the total price paid by the client and the price invoiced to the agency or to the organiser by transport businesses, hotels, restaurants, entretainers and other taxpayers who materially carry out the services used by the customers. ART 183.Quinquiès. - Travel agencies and tour tourists organisers cannot deduct the tax related to the price paid to transport entrepreneurs, hotels, restaurants, entretainers and other taxpayers who materially execute the services used by the customers.

IV. Businesses benefiting from the provisions of the Investment Code

ART 183.Sexiès. - Businesses that, as a result of a founding convention concluded according to the provisions of the Investment Code, are granted a special regime with respect to taxes on turnover, shall continue under the terms of the fiscal stability clause that applies to them, to pay on a transitional basis and up until the end of the current convention, the same taxes on turnover and according to the same conditions. However, such businesses are alowed to exercise an option with respect to the Value Added Tax in the common law conditions, and to give up in that manner to the specific regime which was granted to them in relation to taxes on turnover.

The option is executed by certified letter with acknowledgment of receipt, to the General Director of the Tax department. It comes into effect on the first day of the month following the acknowledgment date of the receipt. This option is irrevocable. In the absence of exercise of the option referred to above, conventioned businesses that do not have the right to deduct either the value added tax, or the taxes on turnover which were mandated on their purchases.

Section VII

TAXATION SYSTEM ART 184. - The common law regime of taxation for the value added tax is the actual turnover regime. It shall apply to: 1- to legal entities; 2- to sole proprietorship businesses whose annual turnover, inclusive of all duties and taxes, exclusive of the value added tax, exceeds: - 6 million UM if their main activity is from either the sale of goods, objects, supplies and food products to go or consummed in place, or of the provision of accommodation, or of construction bulidings. - 3 million UM for sole proprietorship businesses that are primarily service providers. 3- to legal entities or individuals who carry out an activity subjected to income tax for all non-activities when carried out on mauritanian soil. ART 184.Bis. - Sole proprietorship businesses whose annual turnover does not exceed the limits set by article 184 paragraph 2 above are exempt from the value added tax.

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Section VIII

Obligations of the liable parties

I. Tax Debtors

ART 184.Ter. - The Value Added Tax is at expenses of the consumers of products or users of services. It is paid by the individuals carrying out the taxable operations. This tax shall be stated on the invoice or document used as an invoice.

II. Obligations

ART 184.Quater. - 1. ART 184.4 – 1. Any liable party to the value added tax shall submit to the Tax Department a declaration of existence within 10 days of the the taxable operations start up, or of the opening of its business, on the standard form provided by the administration. The declaration shall state the first and last name, or the company status, the address, the taxpayer line of work, and the identification number in the National Directory of Taxpayers. 2. Any adjustments made to one or several of the above statements shall be declared within the ten days following the said adjustment. 3. The businesses transfers or suspension of activities, whether total or partial, shall also be declared within the same periods and subject to the same penalties as the operations start up.. 4. When a party liable to the value added tax is settled or live outside of Mauritania, he is must accredited (give a power of attorney) to the taxation administration, a representative living in Mauritania, who shall undertake and satisfy the processes concerning the liable party, and pay the tax on his behalf. Failure to do so, the value added tax, and, where applicable, the penalties related to, are due by the recipient of the taxable operation.

5. Businesses granted with an exemption in cases other than those expressly referred to in articles 177.5 of this code must nevertheless, in the conditions of the common law, the declarations related to the value added tax they are subject to. 6. Taxpayers cannot rely on the fact that they are a creditor to the Treasury to avoid their tax obligations or to defer the payment of tax. ART 184.Quinquiès. - 1. Taxpayers subject to the regime of declaration of the actual turnover shall keep accounting records on a regular basis including: -an assessed and initialled journal; - an additional "Sales" journal; - an additional "Purchases" journal; - an inventory book. 2. The taxpayers shall clearly show the operations subject to and the operations not subject to the value added tax, as well as, in particular: - for each acquiring of goods, services and works: the indication of its amount, of the corresponding value added tax, of the rate applied, the name and address of the supplier; - for each operation generating an invoice or document used as an invoice which mentioned the value added tax: the net amount of the operation, the amount of the value added tax at the payable rate invoiced, the name and address of the customer; 3. The accountind records or the book mentionned above, as well as the documents proving the operations carried out by the taxpayer, in particular purchase invoices, shall be kept for six years after the year during which the purchases, sales, supplies and other provisions were recorded in the accounts. Such documents shall be presented upon the request of any authorised agent of the fiscal administration, failing to do so will lead to the penalties provided in articles 586 to 588 of this code.

Revised 2007 160

ART 184.Sextiès. - Any party liable to the value added tax who delivers goods or provides services to another liable party, or who requests instalments leading to a tax payment, shall provide an invoice or a duly prepared declaration of import on a regular basis. The absence of statement of the tax identification number in the National Directory of Taxpayers (NDT) results in a banning to deduct the tax invoiced to the customer. In order to have the right status, such invoices or import declarations, made by the parties liable for the value added tax, shall clearly show: the price exclusive of value added tax, the rate, the amount of the value added tax, the net price of the goods or services, their creation date, their order number, the name and address of the vendor and of the purchaser, as well as their tax identification numbers, the quantity of goods or the features of the services provided. The invoice or the import declaration shall be made in two duplicates. The original and the copy shall be kept by the purchaser and the vendor in support of their accounting records. Any person, whether or not he or she has the property to be liable for the value added tax, who mentions such taxes in an invoice or an import declaration, is liable for such taxes solely as a result of just mentionning them. On the other hand, the simple fact that a lawful taxpayer does not include, for any reason whatsoever, the amount of such taxes in the price of his products or services does not exempt him from paying the said taxes. When the invoice or the import declaration does not correspond to the delivery of particular goods or execution of a particular service or shows a price which is not in fact required to be paid by the purchaser, the tax is due by the person who invoiced it. Such tax cannot do not allow any deduction by the person who received the invoice or the import declaration.

III. Clearing-Recovery

ART 184.septies. - Any taxpayer liable for the Value Added Tax must submit each month, in support of his payment, with the Treasury accountant, a declaration in the prescribed form. Such declaration shall indicate, in particular, the total amount of operations carried out, the details of the taxable operations, those of the tax allowing a right to deduction, and the calculation of the payable tax. It is forwarded to the Clearing and Control Service by the Treasury accountant. The Value Added Tax is cleared upon sighting such declaration which constitutes a title for enforcement. ART 184.Octiès 1-The declaration of a particular month shall be submitted, at the latest, on 15th of the following month; when no operation is carried out during the course of a particular month a declaration bearing the registration "N/A" (NOT AVAILABLE) is signed. 2 The payment of the tax due occurs spontaneously without a notice, within the period mentionned in the previous article. The payment, attached to the declaration submitted to the Treasury accountant shall be made in cash or by a certified bank cheque. 3. For importers, the taxes must be declared and paid prior to the removal, of the goods or product. ART 184.Noniès. - The Tax Department is in charge of the clearing, control and actions for the recovery of the value added tax and the other indirect taxes (TCA, TPS, TADE). The Tax Department generates notices of recovery (in french AMR) made enforceable by the General Director of the Tax department.

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Taxes owed but not yet paid are notified to the taxpayer by the services of the Tax Department in charge of the recovery of the value added tax with a notice of recovery sent by certified mail with acknowledgment of receipt, or by notebook transmission. Such notice contains a summons to immediately pay the duties and penalties claimed. The clearing and the recovery of the Value Added Tax due on the imported products is carried out at the same time and according to the same payment option as the customs duties and taxes. ART 184.Deciès. –repealed abrogé.

Section IX

Monitoring of the Declarations

ART 184.undecies. - The inspector or agent in charge of the taxation checks declarations. For that purpose, he may request from the taxpayers all information, justifications or clarifications related to the submitted declarations. He can adjust the declarations. He therefore informs the taxpayer the adjustments made and advise him of the reasons. At the same time he invites the interested party to let him have his acceptance or observations within a period of ten days. Upon the end of the said period, the agent in charge of the taxable base set the elements to be used as a base for taxation subject to the concerned party's right to make a claim after the beginning of the recovery. The lack of notification of the adjustment under consideration swicth the burden of proof to the administration, in the event of judicial recourse taken against the taxes mandated to be paid.

ART 184.duodecies. - The inspector automatically decides the elements to be used for the taxable base for the liable parties who have not submitted a declaration within the prescribed periods. He automatically decides the taxable base for taxpayers who : - have failed to respond within the period of 10 days to a request for explanation or who have given a response equivalent to a dismissal. - have presented documents which do not allow justification of the declared taxation elements. In that case the penalties provided for by articles 478 to 482 are applied. In the event of a desagreement, the liable party can only obtain through judicial recourse, the discharge or rebate of the payment falling upon him by proving the exact amount to be used as the taxable base.

Section X

Penalties ART 184.terdecies. - The late submission and the failure to make a declaration of existence according to article 184.4 are respectively punishable by a fiscal fine of 10 000 UM. There is late submission if the declaration is submitted within ten days following the period provided for in article 184.4 above. Beyond that, it is failure. ART 184.Quaterdecies. – Taxpayers who submit their monthly declarations after the period set out in article 184.8 of this code, but prior to any summons from the tax service, their monthly declaration are punishable by a fine equal to 10% of the duties due after such declaration. The rate of this fine is bring back to 5% when the delay does not exceed one month. When such declaration is signed after a summons by the service, the penalty incurred is equal to 40% of the duties due according to the declaration.

Revised 2007 162

In all cases, the minimum penalty is 20 000 UM. If within a period of ten days after the summons by the services, the taxpayer has not submitted a declaration, the taxes are increased by a fine equal to 80% and the tax agent shall proceed the closing of the shops, boutiques, or warehouses in the conditions set out in article 535 of the general taxation code. In the case where the declaration submitted igned after the allowed period in article 184.8 of this code does not give rise to any duties, the penalty is 20 000 UM. Any breach of the provisions of article 184.4, 5th paragraph, are punishable by a fiscal fine of 10 000 UM per declaration that is omitted or submitted after the allowed period. ART 184.quindecies. - Any oversights and inaccuracies found in the declarations relating to the Value Added Tax are punishable by a fine equal to 40% of the compromised duties. The rate of such fine is increased to 80% when, taking into account the nature of the breach, the good faith of the taxpayer cannot be recognised. ART 184.sexdecies. - Breaches relating to imported goods are reported, prosecuted and repressed in the same way as customs matters. ART 184.septdecies. In regards to the penalties arising out of the breaches provided for by articles 184.15 and 478 above, discounts or rebate of fiscal penalties or increases when such penalties and taxes to which they relate can no longer be the subject of a judicial recourse action, may be granted in the conditions provided for by articles 571 and 574 of the General Code of Taxation. ART 184.Octodecies. - Taxpayers who fail to comply with the obligations provided for in article 181.11, 2nd paragraph, are punishable by fine of 10 000 UM.

Section XI

LITIGATION AND PRESCRIPTION

I. The Litigation

ART 184.Novodecies. - In the matter of claims and in disputes matters, the provisions provided for by articles 558 to 566 of this code apply to the taxes on turnover. ART 184.vicies - No public authority may, for any reason whatsoever, come to a compromise or grant any rebate or reductions concerning the duties under the value added tax. However, the Finance Minister can, when the payment of the duties due is likely to jeopardize the life of the business, come to a compromise or grant rebate or reductions in relation to the same duties.

II. Prescription

ART 184.unvicies. - In the case where the declaration submitted after the period prescribed in article 184.8 of this code do not lead to any duty, the penalty is 20 000 UM. ART 184.duovicies. - The right of recovery of the administration in matters of the value added tax is set out in article 576 of this code. ART 184.tervicies. - The limitation of action of the administration in matters of value added tax is according to the common law rules set out in article 550 of this code.

(see annex below)

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APPENDIX

LIST OF PRODUCTS AND GOODS EXEMPTED FROM V.A.T ON IMPORTS

CODE LIBELLE

0207240000 dindes et dindons non découpés en morceaux, frais ou réfrigérés 0207250000 dindes et dindons non découpés en morceaux, congelés 0207260000 morceaux et abats de dindes et dindons, frais ou réfrigérés 0207270000 morceaux et abats de dindes et de dindons, congelés 0207320000 canards, oies ou pintades non découpés en morceaux, frais ou réfrigérés 0207330000 canards, oies ou pintades non découpés en morceaux, congelés 0207340000 foies gras, frais ou réfrigérés 0207350000 autres viandes et abats de canards, oies ou pintades, frais ou réfrigérés 0207360000 autres viandes et abats de canards, oies ou de pintades, congelés 0401100000 lait et crème de lait non concentres ni sucres,1% de mat. grasses et - 0401200000 lait et crème de lait non concentres ni sucres, +1 a 6 % de mat. grasses 0401300000 lait et crème de lait non concentres ni sucres, + 6 % de mat. grasses 0402101000 conditionnes en emballages de 25 kg et plus 0402102100 cond. en emb. de - de 25kg:dont la vente est réservée exclus. aux pharmaciens 0402102900 conditionnes en emballages de moins de 25kg: autres 0402211000 conditionnes en emballages de 25 kg et plus 0402212100 Cond. .en emb. de – de 25kg:dont la vente est exclus.. réservée aux pharmaciens 0402212900 conditionnés en emballages de moins de 25 kg: autres 0402291000 conditionnés en emballages de 25 kg et plus 0402292100 Cond en emb. de - de 25kg:dont la vente est réservée exclus. aux pharmaciens 0402292900 conditionnés en emballages de moins de 25 kg: autres 0405200000 beurre et autres matières grasses...: pâtes à tartiner laitières 1001100000 froment (blé) dur 1103110000 Gruaux et semoules de froment (blé) 1507900000 autres huile de soja et fractions, non chimiquement modifiées 1508909000 autres huiles d'arachides...: autres 1509909000 autres huiles d'olive...: autres 1510000000 autres huiles d'olives même mélangées, fractions, non chimiquement modifiées 1512190000 autres huiles de tournesol, carthame, fractions, non chimiquement modifiées 1512290000 autres huile de coton et fractions, non chimiquement modifiées 1513190000 huile de coco et fractions, non chimiquement modifiées 1513290000 autres huiles de palmiste ou babas su, fractions, non chimiquement modifiées 1514900000 huiles de navette, colza, moutarde, et fractions, non chimiquement modifiées 1515190000 autres huile de lin et fractions, non chimiquement modifiées 1515290000 autres huile de mais et fractions, non chimiquement modifiées 1515901900 autres huiles, graisses..: huile de karité et ses fractions: autres 1515909000 autres huiles, graisses...: autres 1701999000 saccharose chimiquement pur, a l'état solide: autres 1702300000 glucose et sirop ,sans fructose ou avec - de 20 % en poids sec de fructose 1702400000 glucose et sirop avec 20 % a 50 % en poids sec de fructose 2002100000 tomates entières ou en morceaux ,sans vinaigre ni acide acétique 2002900000 autres tomates, sans vinaigre ni acide acétique 2002900010 non conditionnes pour la vente au détail 2002900020 conditionnées pour la vente au détail 2002900090 Autres 2102100000 levures vivantes 2102200000 levures et autres micro-organismes monocellulaires, morts 2102300000 poudres à laver préparées 2505100000 sables siliceux et sables quartzeux 2712100010 vaseline destine à l'industrie 2712200000 paraffine contenant en poids moins de 0,75% d'huile 2828100000 hypochlorite de calcium du commerce … 2831900000 autres dithionites et sulfoxylates 2833190000 autres sulfates de sodium 2835310000 triphosphate de sodium … 2902190000 autres hydrocarbures,... ou cycloterpeniques 2915210000 acide acétique

Revised 2007 164

2918140000 acide citrique 2931000000 autres composes organo-inorganiques 3001100000 glandes et autres organes même desséchés ou pulvérisés 3001200000 extraits de glandes, organes et leurs sécrétions 3001900000 autres substances a usage thérapeutique ou prophylactique n.d.c.a 3002100000 antisérums, autres fractions du sang, produits immunologiques modifiés 3002100010 sérums de personnes immunisés importes 3002100020 sérums pour animaux importes par le ministère 3002100030 sérums de personnes immunisées importes 3002100040 sérums pour animaux importes avec autorisation 3002100050 sérums de personnes immunisées autrement importes 3002100060 sérums pour animaux autrement importes 3002200000 vaccins pour la médecine humaine 3002200010 vaccins pour la médecine humaine importe 3002200020 vaccin pour la médecine humaine importe 3002200030 vaccin pour médecine humaine autrement importe 3002300000 vaccins pour la médecine vétérinaire 3002300010 vaccin pour la médecine vétérinaire importe 3002300030 vaccin pour médecine vétérinaire autrement importe 3002310000 vaccins anti-aphteux 3002390000 autres vaccins pour la médecine vétérinaire 3002901000 autres sangs,...: ferments 3002909000 autres sangs,...: autres 3003100000 médicaments avec pénicillines ou streptomycines ou dérives 3003200000 médicaments contenant d'autres antibiotiques 3003310000 Médicaments sans antibiotique contenant de l'insuline 3003390000 Médicaments sans antibiotiques avec hormones ou produits du n 29.37 3003400000 médicaments avec alcaloïdes uniquement 3003900000 autres médicaments a usages thérapeutiques ou prophylactiques 3004100000 médicaments en doses, avec pénicillines, streptomycines ou dérives 3004200000 Médicaments en doses, avec d'autres antibiotiques 3004310000 Médicaments en doses, avec de l'insuline 3004320000 Médicaments en doses, avec des corticosurrenales 3004390000 Médicaments en doses, avec d'autres hormones 3004400000 médicaments en doses, avec uniquement des alcaloïdes 3004500000 Médicaments en doses, avec des vitamines ou produits du n 29.36 3004900000 autres médicaments en doses (produits des n 30.02,30.05,30.06 exclus) 3005100000 pansements adhésifs et autres imprègnes ou conditionnes pour vente détail 3005900000 autres pansements imprègnes ou conditionnes pour vente au détail 3006100000 catgut, ligatures hémostatiques résorbables stériles pour la médecine 3006200000 réactifs destines a la détermination des groupes ou facteurs sanguins 3006300000 préparations opacifiant pour radiographies et réactifs de diagnostic 3006400000 ciments et produits d'obstruction dentaire;ciments de réfection osseuse 3006500000 trousses et boites de pharmacie garnies, pour soins de première urgence 3006600000 préparations chimiques contraceptives a base d'hormones ou de spermicides 3201900000 autres extraits tannants d'origine végétale tanins, sels et dérives 3202100000 produits tannants organiques synthétiques 3202900000 autres produits tannants inorganiques et préparations tannantes ... 3203001000 matières colorantes et préparations d'origine végétale ou animale:indigo 3203009000 autres matières colorantes et préparations d'origine animale ou végétale 3204110000 colorants disperses et préparations a base de ces colorants 3204120000 colorants acides ou mordants et préparations a base de ces colorants 3204130000 colorants basiques et préparations a base de ces colorants 3204140000 colorants directs et préparations a base de ces colorants 3204150000 colorants de cuves ou pigmentaires et préparations a base de ces colorants 3204160000 colorants réactifs et préparations a base de ces colorants 3204170000 colorants pigmentaires et préparations a base de ces colorants 3204190000 autres colorants et mélanges des n 3204.11 a 19 3204900000 autres matières colorantes organiques synthétiques 3206110000 pigments et préparations contenant 80% ou plus de dioxyde de titane 3206190000 autres pigments et préparations a base de dioxyde de titane 3206200000 pigments et préparations a base de composes du chrome 3206300000 pigments et préparations a base de composes du cadmium

Revised 2007 165

3206420000 litho phone, autres pigments et préparations a base de sulfure de zinc 3206430000 Pigments ,préparations a base d'hexacyanoferrates (ferro- ou ferricyanures) 3206490000 autres matières colorantes inorganiques 3207100000 pigments, opacifiant et couleurs prépares et préparations similaires 3212900000 autres pigments en milieu non aqueux; teintures pour vente au détail 3301120000 huile essentielle d'orange deterpenee ou non 3302100000 mélanges odoriférants ... des boissons 3302901000 mélanges odoriférantes pour la parfumerie 3402190010 autres agents de surface organiques destine a l'industrie 3808109010 autres insecticides destines a l'industrie 3808400010 désinfectant destine a l'industrie 3823190000 autres acides gras 3907100000 polyacetals, sous formes primaires 3907200000 autres polyesters, sous formes primaires 3907300000 résines époxydes, sous formes primaires 3907400000 poly carbonates, sous formes primaires 3907500000 résines alkyles, sous formes primaires 3907910000 autres polyesters non satures, sous formes primaires 3907990000 autres polyesters satures, sous formes primaires 3923100020 casiers a bouteilles en matières plastiques 3923290010 sacs, sachets similaires d'un poids < ou = 12 (singularises) 3923300010 bonbonnes, bouteilles et flacons singularises 3926909010 cellophane, bandes de cerclage pour pêche 4008111000 plaques, ...en caoutchouc pour semelles 4819100010 emballages singularises 4819200010 emballages singularises 4819300010 emballages singularises 4819400010 emballages singularises 4819500010 emballages singularises 4819600010 emballages singularises 5908000020 mèches destinées aux industries de la bougie 7311000000 récipient pour gaz comprime, liquéfié en fonte, fer ou acier 7310290010 fut destiné aux industries 7311000000 récipients pour gaz liquéfié en fonte, en acier , en fer 8309100000 Bouchons - couronnes, en métaux communs

Toutes positions du Chapter 15

huiles conditionnées pour la vente au détail en emballages immédiats d'un contenu net égal ou supérieur à 20 litres

2104101000 Préparations présentées sous formes de tablettes, de pains ou de cubes 2104109000 Préparations pour soupes, potages ; soupes, potages, bouillons préparés : autres 2104200000 Préparations alimentaires composites homogénéisées