CAMEROON LAW AND PRACTICE Contributed by: Serges Martin Zangue, Brandon Ntahdui, Joel Noussie, Julienne Happi, Mathias Choudjem, Maeva Pokem, Winy Felifack and Synthia Pamela Dounking Amfouo, Zangue & Partners
9. Tax 9.1 Taxation of Business Activities Overview of the Taxation of Companies Doing Business in Cameroon In Cameroon, companies are required to pay different types of tax depending on the tax regime to which they belong, their annual turnover or the activity in which they are engaged.
Foreign investors have the right to appeal any decision by the relevant authorities to the competent authori - ties, as provided by the relevant instrument. Consequences of Making an Investment Without Prior Approval Investing without the prior approval of the relevant authority can lead to both pecuniary and non-pecu - niary sanctions. Pecuniary sanctions These are typically fines based on a percentage of the turnover or transaction value of the investment. Non-pecuniary sanctions These may include: • dissolution of the investment transaction; • disposal of assets or shares involved in the trans - action; • separation of merged businesses or assets; • ceasing joint control over the business; • withdrawal of the approval/licence/permit, etc, for the investment; and • prohibition on carrying out certain transactions or restrictions on business activities. Please refer to 1.2 Regulatory Framework for FDI , 5.2 Securities Regulation and 6. Antitrust/Competi- tion . Other key legal frameworks applicable to foreign investors in Cameroon include the following. • Private investment incentive regime: Ordinance No 2025/002 of 18 July 2025 to lay down investments incentives in the Republic of Cameroon (which repeals all previous contrary provisions of Law No 2013/004 of 18 April 2018, as amended on 12 July 2017) outlines the framework for promoting invest - ment in Cameroon. • Real estate transactions of foreigners: Please refer to 1.2 Regulatory Framework for FDI . 8. Other Review/Approvals 8.1 Other Regimes
The five main tax systems are: • the flat-rate taxation system; • the simplified taxation system; • the actual earnings taxation system; • the non-profit organisations system; and • the non-professional taxpayers system. Taxation of Foreign Companies
Foreign companies operating in Cameroon, for exam - ple via a subsidiary or branch, are subject to the same tax systems as local companies, notably in terms of corporate tax ( impôt sur les sociétés IS) and VAT, pro - vided they have a permanent establishment on Cam - eroonian territory. Foreign companies may be subject to withholding taxes on certain income generated in Cameroon, such as dividends, interest and royalties. Other Considerations Companies in Cameroon whose ordinary shares are listed on the BVMAC are entitled to corporate tax reduction rates. Partnerships may benefit from a dif - ferent tax regime. In principle, the profits of partner - ships are allocated directly to the partners and are thereby subject to personal income tax rather than corporate tax. However, some partnerships may opt to be taxed at the corporate income tax rate. Foreign companies may benefit from a reduced rate under international tax treaties, if such treaties exist between Cameroon and the company’s country of origin. The recently adopted Law No 2024/020 of 23 Decem - ber 2024 on local taxation has introduced a new syn - thetic general tax system, the application of which will be determined at a later date by an implementing text.
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