Cameroon flag Cameroon: Business Environment

Tax rates in Cameroon

Tax Rates

Consumption Taxes

Nature of the Tax
Value Added Tax (VAT)
Tax Rate
The VAT rate is 19.25% (17.5% plus a 10% local surcharge)
Reduced Tax Rate
Exports and transactions carried out in free trade zones are zero-rated.
Certain essential goods are exempt, including: transactions relating to the transfer of ownership of real estate and goodwill subject to transfer tax or equivalent taxation, provided such transactions are subject to registration duties; real estate transactions of all kinds carried out by non-professionals (if they are subject to registration duties); fees charged by educational institutions and universities; pesticides, fertilizers and their inputs, beef (except imported meat), pharmaceuticals, etc.; sales of petroleum products for the refuelling of airplanes of companies based in Cameroon; supplies of water and electricity for domestic consumption up to 20 m3/month and 220 kW/ month respectively; medical services; materials and equipment for producing solar and wind energy; urban public transport by bus; contracts and commissions on life insurance products with a savings component; interest on negotiable debt securities issued by the state, regional and local authorities; interest on loans of less than XAF 2 million granted by category 1 micro-finance institutions.
Other Consumption Taxes
An excise duty of 25% is applicable to cigarettes, drinks, cosmetics or luxury products, jewels, and precious stones. A reduced rate of 12.5% may apply to soft drinks and private vehicles with engine capacities of 2,000 cm³. Gambling activities, including lottery, are subject to a specific tax rate of 15% of turnover.
Mobile telephone communications and Internet services are subject to an extra-reduced rate of excise duties at 2%.
Some arms and their parts are also subject to a 25% excise duty.

Return to top

Corporate Taxes

Company Tax
33% for companies with a turnover above 3 billions
30.8% for companies with a turnover below 3 billions
Tax Rate For Foreign Companies
Resident firms are taxed on worldwide income whereas non-resident companies are only liable for their Cameroon-sourced income.
An entity is deemed resident if its registered office, centre of activity, or management is located in Cameroon; if it has resident employees in Cameroon that provide services to customers; or if it has a permanent establishment in the country.
Capital Gains Taxation
Capital gains are treated as business income and taxed at the standard corporate tax rates. Capital gains arising from the sale of listed shares or the transfer of rights related to natural resources are subject to a 16.5% withholding tax. Gains derived from the transfer of stocks and shares and bonds are taxable even in the case of indirect disposals.
Main Allowable Deductions and Tax Credits
Depreciation of tangible and intangible assets is tax-deductible at rates ranging from 1% to 100%. Deduction of depreciation can be carried forward indefinitely. Goodwill can also be amortised for tax purposes.
The Cameroon Tax Code does not provide any mechanism for the deduction of start-up costs, but these may be deductible over a period of two to five years based on the accounting principles of the Organisation for the Harmonisation of Business Law in Africa (OHADA).
Any payment made for the purchase of intellectual property (within the Central African Economic and Monetary Community) is deductible up to 2.5% of taxable income.
Interest costs and bad debt are generally deductible. For bad debt deduction, companies must prove they have unsuccessfully carried out measures for debt recovery.
Donations to charities are not deductible. On the other hand, payments to research and development organizations, educational, sports, philanthropic and social organisations are deductible at the rate of 0.5% of the annual turnover (the rate goes up to 5% for donations to clubs participating in the elite national competitions or to recognised organisations responsible for the organisation of official sports competitions).
Fines and taxes paid are not deductible (with the exception of business taxes regarding operations in Cameroon).
Tax losses can be carried forward for up to four years (six years for credit institutions and companies in the State portfolio). The carryback of losses is not permitted.
Other Corporate Taxes
Social security contributions payable by the employer amount to 11.2% of the salary. The contribution base is capped at XAF 750,000 per month. Employers are also required to pay a 1.75%, 2% or 5% salary contribution to the National Social Insurance Fund. The payroll tax is 2.5% of the total amount of wages and benefits in kind.
All companies are subject to a professional tax (business license tax) at varying rates based on their turnover. It amounts to 0.159% of the turnover of large companies (a minimum contribution of XAF 5 million and a maximum of XAF 2.5 billion), 0.283% for medium-sized enterprises (a minimum contribution of XAF 141,500 and a maximum of XAF 4.5 million) and 0.494% for small businesses (a minimum contribution of XAF 50,000 and a maximum of XAF 140,000). Newly incorporated businesses are exempt from this tax in their first year of operation.
A 16.5% WHT is to be deducted at source by entities that pay remunerations granted to the board members of public institutions, public corporations, and semi-public companies in any capacity
Stamp duties range from XAF 1,000 to XAF 1,500. Registration fees are also levied on most transactions (listed by the General Tax Code) at rates ranging from 1% to 15%. The sale of a company is subject to 15% transfer duty.
The property tax is levied at 0.1% of the assessed value of a property.
A tourist tax is levied according to the type of hotel, between XAF 500 and 5,000.
A special tax on petroleum products is payable by companies distributing taxable products. The rate is XAF 110 per litre on super gasoline and XAF 65 per litre on petroleum diesel.
Other Domestic Resources
Consult Doing Business Website, to obtain a summary of the taxes and mandatory contributions.

Country Comparison For Corporate Taxation

  Cameroon Sub-Saharan Africa United States Germany
Number of Payments of Taxes per Year 44.0 36.6 10.6 9.0
Time Taken For Administrative Formalities (Hours) 624.0 284.8 175.0 218.0
Total Share of Taxes (% of Profit) 57.7 47.3 36.6 48.8

Source: Doing Business, Latest available data.

Return to top

Individual Taxes

Tax Rate

Net Personal Income Tax on salaries Progressive rate from 11% to 38.5% (all rates include the 10% surcharge)
From XAF 0 to 2,000,000 11%
From XAF 2,000,001 to 3,000,000 16.5%
From XAF 3,000,001 to 5,000,000 27.5%
More than XAF 5,000,000 38.5%
Net incomes from other activities 33%
Allowable Deductions and Tax Credits
Allowable deductions include business expenses (up to 30% of the taxable salary) and social security contributions. All individuals are entitled to an annual abatement of a fixed amount of XAF 500,000 for wages and salaries.
Wages of less than XAF 62,000, scholarships, interest on savings not exceeding XAF 50 million, and income on cash vouchers issued by companies are exempt from personal income tax.
Special Expatriate Tax Regime
There is no special tax regime for expatriates, who are taxed on their Cameroon-source income.
Foreigners who stay in Cameroon for more than 183 days in a calendar year are considered tax domiciled in Cameroon.

Return to top

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
See the list of the conventions signed by Cameroon
Withholding Taxes
Dividends: 16.5% (10% surcharge included), Interest: 16.5% (10% surcharge included), Royalties: 15% (no surchage applies).

Return to top

Sources of Fiscal Information

Tax Authorities
Overview of Cameroon's tax measures in response to Covid-19
Directorate General of Taxes
Other Domestic Resources
Cameroon Tax Legislation

Return to top

Any Comment About This Content? Report It to Us.

 

© Export Entreprises SA, All Rights Reserved.
Latest Update: November 2022

Return to top