Cameroon, Republic of
As of 1 January 2018, the following significant corporate tax developments were introduced in Cameroon by the 2018 Finance Law:
- The ceiling of the computer fee, which rate is 0.45%, shall be fixed at 15,000 Communauté Financière Africaine francs (XAF) per export declaration.
- Some arms and their parts, as well as ammunition, (of Chapter 93 of the Economic and Monetary Community of Central Africa [CEMAC] Code) imported by persons other than those governed by public law shall be subject to excise duty at the rate of 25% of the taxable value.
- Software, royalties, usage rights, licences, and updates shall be subject to customs clearance under the terms and conditions provided by the law, regardless of the means of entry into Cameroon.
- Interest for late payment at the rate of 1.5% per month (capped at 50%) has been instituted for persons who have failed to pay taxes and customs duties 30 days after the computation of the detailed declaration.
- Approved intermediaries shall, through electronic means, provide the Directorate General of Customs, on a monthly basis, the information on the status of all foreign financial transactions carried out with their customers and on their personal behalf.
- Any importer or exporter wishing to terminate one's customs activities shall first inform the customs administration at least 90 days beforehand and request a customs audit.
- The Preferential Tariff (PT) of the Economic Community of Central African States (ECCAS) entered into force on 1 January 2018.
- Companies in the large taxpayers unit shall automatically submit their transfer pricing documentation alongside their annual tax return.
- The rate of deduction at source representing the instalment of corporate income tax (CIT) is fixed at 5.5%, irrespective of the tax regime of the service provider, for invoices relating to public procurement amounting to less than XAF 5 million.
- Games of chance and entertainment, including lotteries and mutual, simple, or any other betting games, shall be subject to a specific excise duty of XAF 25 per unit of play or bet.
- Value-added tax (VAT) credit refund procedure shall depend on whether the taxpayer is classified in the category of low, medium, or high-risk company.
- Remunerations paid abroad for the provision of access to digital audio-visual services and remunerations paid for all kind of services provided to oil companies during the research and development (R&D) phases shall be subject to the reduced rate of special income tax (SIT) at 5%.
- Collateral and mortgage loans with microfinance institutions of the first category, as well as the related releases, surety bonds, and guarantees, shall be exempted from the registration formality and the payment of graduated stamp duty.
- Any public procurement of an amount above or equal to XAF 5 million, whatever the source of financing, shall be to the reduced rate of 2% registration duties.
- 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 negotiate the harmonisation of the provisions of the said conventions with the law on private investment incentives with the Ministry in charge of finance.