Cameroon, Republic of

As of 1 January 2023, the following significant corporate tax developments were introduced in Cameroon by the 2023 Finance Law:

• Reduction from 30.8% to 27.5% of the rate of CIT applicable to companies with an annual turnover excluding tax equal to or less than 3 billion and which meet the eligibility criteria provided for by the regulations.

• Increase from 16.5% to 33% of the tax rate on capital gains paid to beneficiaries domiciled or established in a territory or state considered a tax haven.

• Consecration of the possibility of withdrawal to the beneficiaries, of the approvals to the various tax incentive schemes.
• Generalisation of the remote payment of taxes to all taxpayers.

• Establishment of the procedure of advance pricing arrangements in matters of transfer pricing.

• Strengthening of the reporting obligations of companies in terms of indirect transfer of shares, bonds and other capital shares.

• Increase from 0.45% to 1% of the ceiling for the computer fee, which remains capped at XAF 15,000 per export declaration.

• Exclusion of goods imported in the context of the execution of a public contract and for which the customs duties and taxes are borne by the State, from the payment of interest for late payment of customs duties and taxes.

• Obligation for taxpayers with a transfer pricing policy for cross-border trade in goods and services to submit their transfer pricing documentation to the customs authorities by 31 March of each year at the latest.
• Establishment of the sanction of fraudulent transfer of funds without actual importation of goods and services in the context of foreign trade.
• Extension from 30 to 45 days of the time limit for the examination of contentious claims by the Director General of Taxation.
• Increase in the tariff of the size stamp duty as well as of some specific stamps.
• Establishment of the administrative arbitration procedure in the context of tax audits giving rise to disagreements between the taxpayer and the agents of the tax administration on the grounds for adjustment likely to prejudice the continuation of the taxpayer's activity.
• Exclusion of non-profit organisations not liable for taxes (even if they carry out a commercial activity on an ancillary basis) from the scope of application of the WHT on the purchases they make.