Cameroon, Republic of

As of 1 January 2021, the following significant corporate tax developments were introduced in Cameroon by the 2021 Finance Law:

• In order to deduct the interest paid to shareholders for the sums they leave or make available to the company in addition to their share capital, in addition to the thin capitalization which already applies, the finance law for the financial year 2021 enshrines two new cumulative conditions:

 - The existence of a written and duly registered loan agreement;

- The total payment of the share capital.

•  For credit institutions and companies in the State's portfolio under restructuration, the surplus deficit can be carried forward until the end of the 6th year following the deficit year.
• The corporate tax rate has been reduced to 30.8% for companies with a turnover of 3 billion or less. The rate of 33% remains applicable for companies with a turnover of more than 3 billion.

• Non-professional taxpayers (employees) are required to file an annual summary income tax return by 30 June each year.
• Extension of an additional year for the deduction of loss carried forwards and depreciation deemed to be deferred for the benefit of companies directly affected by the Covid-19 health crisis;

• Recognition of the deductibility for the financial year 2020 of donations made by companies as part of the fight against the Covid-19 health crisis.

Concerning the customs duties, the major changes are the following:

The promotion of the import-substitution policy through the introduction of:

• the exemption from duties and taxes on imported capital goods for agriculture, livestock and fisheries, imported medicines and inputs for the pharmaceutical industry;
• the reduction of customs duty to 5% and exemption from VAT on imported capital goods intended for the pharmaceutical industry;
• the submission to excise duty of certain imported goods that can be produced without particular difficulties in Cameroon or presenting negative externalities at the general rate of 25% and the reduced rate of 5%;
• The reinforcement of the protection of taxpayers' rights during customs controls;
• The consecration of jurisdictional and non-jurisdictional guarantees for the protection of taxpayers' rights.
• The possibility of cancelling a customs declaration if certain conditions are met;
• The entry into force of the African Continental Free Trade Area on 1st January 2021.