Foreign tax credit
Taxes paid abroad are not considered as tax credits unless provided as such by DTTs.
The system of reinvestment relief
This system of reinvestment relief previously provided by the GTC has been cancelled by the 2015 Finance Law.
The private investment tax incentive regime
The private investment tax incentive regime instituted by Law No. 2013/04 of 18 April 2013 applies to investment operations relating to the creation, extension, renewal, refurbishing of assets, and/or the transformation of activities carried out in Cameroon.
The major tax advantages related to the private investment regime in Cameroon are the following:
- During the installation phase: Tax incentives for a maximum period of five years.
- During the exploitation phase: Tax incentives for a maximum period of ten years.
- For the development of existing companies: Tax incentives for a maximum of five years.
- Possibility of specific advantage for prioritised sectors.
Tax and customs incentives granted to investors consist of exemptions from or reductions of payment of several taxes, duties, and other fees listed.
According to the 2017 Finance Law, conventions and agreements signed by the authorities that provide for customs and tax exemptions and waivers shall, under pain of unenforceability, be subject to prior approval by the Minister in charge of finance.
Individuals or legal entities benefiting from tax and customs incentives contained in the conventions with various administrative authorities and not ratified by the Parliament shall, in accordance with the 2017 Finance Law and within the deadline of two years from the promulgation of the 2018 Finance Law (20 December 2017), negotiate the harmonisation of the provisions of the said conventions with the above-mentioned law on private investment incentives with the Ministry in charge of finance.
Incentives applicable to listed companies
Companies whose ordinary shares are listed on the Cameroon Stock Exchange shall be entitled to the following reduced CIT rates:
- 22% for a period of three years for capital increases that represent at least 20% of the share capital.
- 27.5% for a period of three years for transfers of shares that represent at least 20% of the share capital.
- 30.8% for a period of three years from the date of listing for capital increases or transfers of shares that represent less than 20% of the share capital.
According to the 2016 Finance Law, such reduction shall be granted to companies listed on the stock market within three years, with effect from 1 January 2016.
Companies that issue stocks on the Cameroon Stock Exchange shall be entitled to a reduced CIT rate of 25% (i.e. 27.5% including 10% additional council tax) for a period of three years, with effect from the year of issue.
Specific tax incentives
The following may benefit from specific tax incentives:
- Transactions on real estate located in areas subject to the official list price.
- Promotion of youth employment.
- Members and promoters of approved management centres.
- Education, vocational training, and health establishments.
- New investments carried out in economic disaster areas.
- Companies involved in agriculture, stock breeding, and fisheries.
- Public establishments promoting local building materials.
- New beverages produced and packaged exclusively using local raw materials.
- Expenses for research and innovation.