Cameroon, Republic of
For valuation purpose, the GTC only provides that stocks shall be valued at cost price; however, if the market price is lower than the cost price, the undertaking shall make provisions for depreciation of inventory. No reference is made to the accounting method that shall be used (e.g. first in first out [FIFO], last in first out [LIFO]). Only FIFO and weighted average methods are allowed under the Organisation for the Harmonisation of Business Law in Africa (OHADA) Accounting Principles. Where there is any difference between the valuation method permitted by the GTC and the book valuation, the accounting result shall be modified accordingly.
Firms shall, by 15 March, submit a summary of all the stock movements of the financial year concerned, together with the software used in managing the said stock. The summary of inventory movements should be produced in dematerialised form.
The right of ascertainment of stocks by the tax administration shall allow tax officers to conduct unannounced on-site operations to physically audit the stocks of one or several products of the non-prescribed period. A notice of passage shall be remitted to the taxpayer or representative during the first intervention within the framework of such audit.
Capital gains are normally taxed at full CIT rates.
The net overall capital gains arising from the transfer of shares and stocks; income from bonds; income from debts, deposits, surety-bonds, and current accounts; profits realised from the transfer of shares; reimbursement of sums put at the disposal of the company by a manager or a partner as an advance or a loan; and capital gains on the transfer of rights relating to natural resources shall be subject to 16.5% WHT.
For transfers realised abroad, the Cameroonian law enterprise and the transferor shall be jointly and severally liable to payment of the sums due under such transfer.
Dividends are subject to the WHT of 16.5%. However, dividends shall be treated as proceeds for the purpose of CIT, and the tax withheld at source is used as instalment for the payment of CIT.
Interests are subject to the WHT of 16.5%. However, interests shall be treated as proceeds for the purpose of CIT, and the tax withheld at source shall be used as instalment for the payment of CIT.
Interests on external loans of a maturity period of at least seven years, signed as of 1 January 2014, are exempted from the WHT.
Royalties received from foreign entities shall be included in the taxable income subject to CIT, subject to double tax treaties (DTTs).
As a matter of both fact and law, revenue from abroad earned by corporate bodies situated in Cameroon shall be subject to CIT in Cameroon. There is no provision on tax deferral in Cameroon.