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CAMEROON

Summary of the taxes applicable in Cameroon

Le The General Tax Code of Cameroon was established by law n ° 2002-003 of April 19, 2002, replacing the Code of 1973 "for the sake of updating, unification and simplification." It has since undergone several changes, including the Finance Act of 2003 which reformed the tax on personal income (PIT), or by law No. 2009-019 of 1. December 2009 on local taxation. 

 

 



 

Table 1 : Corporate taxes

 

Corporate taxes

 

Taxable persons

Are liable to corporate tax :

  • Corporations, even single-member, limited liability (SARL) companies, even single-member, de facto corporations, cooperatives and institutions or organizations
  • Civil societies
  • Partnerships who have opted for the corporate tax
  • Public institutions and decentralized territorial collectivities
  • Micro finance institutions

Taxable products

Taxable profit is net income determined from the results of the operations of any nature carried out by companies in the base period used for taxation, including including the sale of any assets either in progress or completion.

Exemption

Are exempt from corporate tax :

  • Agricultural products production, transformation, conservation and sales cooperatives and their unions when they operate in accordance with the legal provisions governing them
  • Pastoral farming unions and supply and purchasing cooperatives operating in accordance with the provisions which govern them
  • mutual agricultural credit banks
  • Mutual benefit societies and unions
  • Profits earned by non-profit associations organizing fairs, exhibitions, sports meets and other public events, with the assistance of Commons or local government agencies, corresponding to the object specified by their statutes and economic and social interest certain
  • Decentralized territorial collectivities as well as their public service boards
  • Companies or agencies recognized to be of public utility in charge of rural development
  • Public affordable housing offices
  • Clubs and private circles for their non-profit activities
  • Private educational institutions when they do not pursue profit
  • The National Fund for social insurance for the portion of profits from the contributions on wages
  • Investment companies with variable capital, mutual funds for the profits made in the framework of their legal object
  • Economic interests groups, for their profit share distributed to their members whom are individuals
  • Public administrative hospital institutions

Rate

For the calculation of the tax, any portion of the taxable income of less than FCFA 1,000 francs is neglected.

The rate is 35%.

Fixed minimum charge

 

The minimum charge under the corporate income tax is the amount of tax due by each company or community which cannot be less than that which would result from the application of 1% of total businesses achieved during the previous year.

For taxpayers under the simplified scheme, the rate is increased to

  • 3% for merchants whom are not importers
  • 5% for producers, service providers and importer traders

 

 

 



 

Table 2 : Tax on craft, industrial and commercial profits

 

Tax on craft, industrial and commercial profits

 

Taxable persons

Profits earned by individuals in companies operating in Cameroon and from the exercise of an industrial, trade or craft profession or a mining or forestry operation

 

The same is true of the profits made by :

  • Mines and quarries concessionaires
  • Farmees and sub-farmees of mining concessions
  • Holders of licences for mines and quarries
  • Oil and gas mine explorers
  • Agents or self-employed commercial agents
  • Persons engaged in intermediate business for the purchase or sale of real estate property or business or who usually buy in their name the same goods for resale
  • Individuals performing the subdivision and sale after execution of the work of development and sustainability of land belonging to them
  • People who give to rent a commercial or industrial establishment equipped with furniture and equipment necessary for its operation, whether or not the rental include all or part of the intangible elements of the industry or trade fund
  • People who lease or sublet furnished all or part of the buildings belonging to them
  • The people who, as principal or accessory, operate games of chance and entertainment

Rate

The rate, rounded to the lower thousands of francs :

 

De 0 à 2 000 000                  : 10%

From 2 000 001 to 3 000 000    : 15%

From 3 000 001 to 5 000 000    : 25%

More than 5 000 000                 : 35%

 

The tax cannot be less than 1% of the turnover achieved during the year.

 



 

Table 3 : Tax on agricultural profits

 

Tax on agricultural profits agricoles

 

Taxable persons

Income earned by farmers, sharecroppers, part settlers, or by owners operating themselves

Rate

The rate, rounded to the lower thousands of francs :

 

From 0 to 2 000 000                  : 10%

From 2 000 001 to 3 000 000    : 15%

From 3 000 001 to 5 000 000    : 25%

More than 5 000 000                 : 35%

 

The tax cannot be less than 1% of the turnover achieved during the year.

 



 

Table 4 : Tax on profits from non commercial professsions

 

Tax on profits from non commercial professsions

 

Taxable persons

Liberal professions of functions and offices for which the holders do not have the quality of traders

Wage income of artists and sportsmen

The benefits of all operations, lucrative holdings and sources of profits which is not related to another category of profits or income

Rate

The rate, rounded to the lower thousands of francs :

 

From 0 to 2 000 000                  : 10%

From 2 000 001 to 3 000 000    : 15%

From 3 000 001 to 5 000 000    : 25%

More than 5 000 000                 : 35%

 

The tax cannot be less than 1% of the turnover achieved during the year.

 



 

Table 5 :Value added and excise tax

 

Value-added tax (VAT) and excise duties

Taxable persons

Are subject to VAT the physical or legal persons, including the decentralized territorial communities and the public bodies, which carry out on a regular or occasional basis and in an independent manner, taxable transactions as set out below.

Taxable transactions

Are taxable for VAT the following operations;:

  • Supplies of goods and deliveries to oneself
  • The provision of services of third parties for oneself
  • Import transactions of goods
  • Construction works
  • Real estate transactions of all types carried out by real estate professionals
  • Sale of pre-owned and used items and products made by professionals
  • Disposals of tangible capital assets
  • Operations carried out by businesses approved at the free zone regime
  • Sales of petroleum products imported or produced in Cameroon
  • Games of chance and entertainment

 

 

Exemption

Are exempt from VAT :

  • The following, provided they are subject to specific taxation exclusive of any taxes on turnover
  • Operations related to international traffic
  • The importation or sale by the State of tax and postal stamps and stamped paper
  • Sums paid by the Treasury to the Central Bank responsible for the privilege of the issue, and the products of the Bank's operations, generating the issuance of currency
  • Tuition and Board fees collected in the normal course of the activity of educational institutions and / or regularly authorized universities, as the case may be, by the Minister of National Education or the Minister responsible for higher education
  • The first need goods (pesticides, beef, pharmaceuticals)
  • Lease transactions made by credit institutions for the profit of lessees in order to acquire specialized agricultural equipment, meant for agriculture, livestock breeding and fishing
  • Sales of petroleum products for the refueling of aircraft companies with offices in Cameroon
  • Social consumption portions for households and relatives to the following goods (water, up to 10m3 per month; electricity up to 110 kw per month)
  • The operations of composition, printing, import and sale of newspapers and periodicals excluding advertising revenues, inputs and capital goods for these operations, acquired by media companies or publishing newspapers and periodicals
  • Exempt imported goods
  • The examinations, consultations, treatments, hospitalizations, medical analysis and biology work and prostheses supplied in health facilities
  • Life insurance and health insurance contracts commissions
  • Local processing operations of wooden semi-finished products, including sawing, molding and assembly
  • The materials used in the fight against HIV / AIDS under the conditions laid down by regulation
  • Subject to reciprocity, headquarters agreement and quotas established by the Cameroonian authorities, goods and services for the official use of foreign diplomatic and consular missions and international organizations, in the manner prescribed by regulation
  • The materials and operating equipment of solar and wind energy

 

Rate

 

The rates of VAT and excise duties are

  1. VAT

General rate: 17.5%

Zero rate: 0%

  1. Excise duty

General rate : 25%

Reduced rate : 12,5% (passenger vehicles with a cylinder capacity greater than or equal to 2000 cm3 and soft drinks)

Fixed minimum charge

 

For all other professions, the minimum charge is :

  • One million (1,000,000) CFA francs for those covered by the benefit of sustainable effective tax system
  • Three hundred thousand (300,000) CFA francs for those under the real earnings of the simplified tax system

 



 

Table 6 : Tax on gambling and entertainment

 

 

Tax on gambling and entertainment

 

Taxable persons

Any natural or legal person who operates in the national territory, as a principal or subsidiary occupation, games which, under any description whatsoever :

  • Are based on the expectation of a gain in-kind or cash which may be acquired by way of fate or otherwise
  • Is  intended to provide simple entertainment

Rate

The levy is liquidated at 15% of the turnover during the tax period

 



 

Table 7 : Special tax on petroleum products

 

 

 

Special tax on petroleum products

Taxable persons

The special tax on petroleum products is due the oil companies, distributing taxable goods

Taxable products

There shall be a special tax on sales of oil products :

premium gasoline

diesel

 

Exemption

Are exempt :

  • Diplomatic or consular missions
  • International organizations and diplomatic level personnel within the limits of quotas established

Rate

The rates are :

Premium gasoline : 120 francs per liter ;

Gas oil : 65 francs per liter