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
9.5 Anti-Evasion Regimes Cameroon has established measures to oversee FDI and prevent tax evasion, notably through transfer pric - ing rules, withholding tax and international treaties. Transfer Pricing Rules Transfer pricing rules in Cameroon are mainly designed to ensure that transactions between related compa - nies (including those between a local enterprise and a foreign investor) are carried out at market prices. Companies must maintain documentation justifying their pricing and submit an annual transfer pricing declaration. The Cameroon tax authorities have the right to review transfer prices and apply adjustments if they consider that the prices applied are not in line with market conditions. Anti-Hybrid Rules Cameroon legislation does not provide for any specific anti-hybrid rules. Tax avoidance is addressed through withholding tax, particularly through special income tax on cross-border payments. The government also monitors financial flows to ensure compliance. Regimes to Deter Tax Evasion Cameroon combats tax evasion via tax treaties and adherence to international tax transparency initiatives, such as the OECD Multilateral Convention on Mutual Administrative Assistance in Tax Matters. Overall, companies operating in Cameroon must com - ply with transfer pricing and anti-avoidance measures to mitigate tax risks and avoid penalties. 10. Employment and Labour 10.1 Employment and Labour Framework Overview of the Legal and Regulatory Regime Applicable to Employment and Labour Matters In Cameroon, employment and labour matters are mainly regulated by: • Law No 92/007 of 14 August 1992, establishing the Labour Code and its implementing texts; • national collective bargaining agreements; and • establishment agreements.
There are also legal instruments on social securities and protection granted to workers, under the control of the National Social Insurance Fund (NSIF). Collective Bargaining, Works Council and Labour Union Arrangements at Companies In Cameroon, well-established mechanisms have been put in place to safeguard the rights of both employers and employees. This is carried out through the adop - tion of sector-specific national collective bargaining agreements, the election of employee representatives in companies and the creation of sector-specific pro - fessional trade unions. Other Employee and Labour Aspects Important for FDI Under the Cameroon Labour Code, foreign employees can only work in the country under fixed-term con - tracts with a maximum duration of two years, renewa - ble once. These contracts must receive prior approval from the Minister of Employment and Vocational Train - ing before the employees begin work. This approval process is generally subject to adminis - trative fees, calculated as a percentage of the agreed salary. Similarly, contracts for foreign consultants also require prior approval from the same Minister and are subject to an administrative fee equivalent to a percentage of the consultant’s service fee. 10.2 Employee Compensation Common Frameworks Used for Compensation of Employees In Cameroon, the most common frameworks include the following. • Cash compensation – fixed monthly salary and bonuses, commissions or incentives, depending on company practices (optional). • Equity compensation – some multinational com - panies offer equity-based incentives to motivate employees. In certain cases, companies may distribute a portion of profits to employees, par - ticularly for senior executives. • Pensions/retirement benefits – all employees are entitled to retirement benefits under the auspices
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