Cameroon, Republic of

As of 1 January 2025, the following significant corporate tax developments were introduced in Cameroon by the 2025 Finance Law:

• Reclassification of software imported into Cameroon (on media or by download) into the second category of the Common External Tariff (CET), so that the duty payable is now 10% when declared spontaneously.
• Exclusion of imported goods with similar local products from customs import facilities.
• Reduction (from 5% to 1%) of the ceiling on the deductibility of commissions and brokerage on goods purchased on behalf of companies established in Cameroon.
• Increase (from 500,000 to 3 million Communauté Financière Africaine francs [XAF]) of the deductibility threshold for losses on bad debts for credit institutions.
• Adding to the conditions for the deduction of provisions for doubtful debts and commitments of credit and microfinance institutions the condition of prior certification of the debtor's accounts by a statutory auditor when the amount is equal to or greater than XAF 50 million per year.
• Non-deductibility of expenses justified by invoices from local suppliers that do not contain the information required by Section150 (5) of the General Tax Code (GTC).
• Non-deductibility of expenses relating to transactions with entities established in tax havens.
• Introduction of an obligation for employers to provide employees with a detailed summary statement of amounts paid and deductions made.
• Clarification of the procedures for withholding and payment of distribution tax on profits made by Cameroonian branches and permanent establishments (PEs) of foreign companies.
• Clarification of the tax base for the special income tax (SIT) on mixed transactions (purchase of goods requiring the provision of specific services by the supplier) by introducing an obligation for the purchaser to provide documentation distinguishing the value of the goods from that of the ancillary services.
• Extending the scope of the tax on money transfers to withdrawals from electronic gaming and entertainment platforms, at a rate of 1% of the amount withdrawn.
• Introduction of a specific tax of XAF 4 per transaction on money transfers made by credit and microfinance institutions.
• Reduction from 15% to 10% of the distribution tax rate on dividends regularly distributed by companies with a turnover of less than or equal to XAF 3 billion.
• Extension of the scope of the capital gains tax on real estate to sales by non-trading real estate companies.
• Allowing the tax authorities to send reminders to defaulting taxpayers by any means of public communication.
• The introduction of an obligation for companies that are required by law to appoint an auditor to submit a certificate on the financial statements drawn up by the auditor when submitting their annual tax return.
• Establishing the suspension of audit deadlines in the event of a request for the production of documents sent to the audited taxpayer.
• Extension of joint and several liability to branches of foreign companies for tax on income from Cameroonian sources.
• Introduction of a fixed penalty (capped at XAF 50 million) for the use of forged or fraudulently obtained tax documents.
• Raising the jurisdictional thresholds for the tax authorities to examine contested claims by taxpayers.