Mauritania is an African country that borders the Atlantic Ocean, Western Sahara, and other African nations. Officially known as the Islamic Republic of Mauritania, the country has a population of over 4 million. Iron mining in Zouerate boasts a major boon to the economy, and trains run along the Mauritania Railway linking Zouerate to the Nouadhibou port.
Companies that want to expand to Mauritania can take advantage of different industries in the country as well as relationships with other African countries. However, you first need to set up your Mauritania payroll, hire employees, and provide compensation and benefits. That’s why G-P provides Mauritania payroll outsourcing and our Global Expansion solution. We’ll help you expand around the world without any hassles, so you can focus on growing your company.
Taxation Rules in Mauritania
Mauritania’s income taxes run at a progressive rate from 0-40% depending on how much an employee makes. Employers have to use a Pay As You Earn (PAYE) system to pay employees, which means you’ll deduct taxes straight from an employee’s paycheck. This process requires a complete understanding of the country’s laws so that you can stay compliant.
Both employers and employees need to make monthly social security contributions to CNSS and CNAM. Rates include:
- CNSS: Employees contribute 1% of monthly salary, and employers contribute 13% to social and 2% to medical.
- CNAM: Employees contribute 4% of monthly salary, and employers contribute 5%.
Mauritania Payroll Options for Companies
You’ll have four different Mauritania payroll options to choose from when you incorporate:
- Remote: If your parent company has an existing payroll, you can add as many employees from different countries as you want. However, you need to make sure you meet all the applicable laws per country.
- Internal: Another option is to create your own internal payroll that you run out of your own subsidiary. Before you start this payroll, you should make sure you have the budget, staff, and expertise to run it.
- Mauritania payroll processing company: A Mauritania payroll processing company will help you outsource the daily handling of your payroll, but your company will still be the one held compliant for all the local company’s actions.
- Mauritania payroll outsourcing: Your last option is Mauritania payroll outsourcing with a global PEO such as G-P. We can use our existing payroll to help you run your company faster without any worries about compliance.
How to Set Up a Payroll in Mauritania
You’ll face several requirements before you can set up your Mauritania payroll, but the biggest is your subsidiary. Your company must have a legal entity in Mauritania before you can begin any type of work. However, this process can take months or longer if you run into any delays. If you choose to work with G-P, you can bypass this requirement by using our Mauritania subsidiary. We’ll handle everything about your expansion and act as the Employer of Record to help you stay compliant.
Entitlement/Termination Terms
Terminating an employment contract is difficult in foreign countries, which is why we recommend adding entitlement and termination terms to your contracts before setting up your Mauritania payroll. Indefinite contracts can be terminated by the will of one of the parties, but you must inform the worker by writing and indicating why you’re firing them and giving them the chance to respond within 48 hours.
Payroll Processing Company in Mauritania
G-P is the team you need on your side during a global expansion. Contact us today to learn more about Mauritania payroll outsourcing.