CAMEROON Law and Practice Contributed by: Lynda Amadagana, Elise Ngo Nyobe, Cecile Bella and Kevin Djomgoue, Amadagana & Partners
The mining legislation does not distinguish between the taxation of national and interna - tional investors. 4.2 Tax Incentives for Mining Investors and Projects The Mining Code grants several advantages to mining companies depending on whether they are in the exploration or exploitation phase. Tax incentives in the exploration phase include: • exemptions from the business licence contri - bution; • free registration of incorporation deeds, company extension deeds or capital increase deeds, and transfers of undeveloped real estate; and • a VAT exemption on local purchases and on imports of materials and equipment directly related to mining operations appearing on a list drawn up jointly by the Ministry of Mines, Industry and Technological Development and the Ministry of Finance (subject to the pres - entation of a VAT exemption certificate issued by the tax authorities). Tax incentives in the exploitation phase include: • the payment of registration fees on the acts of creation of the company, extension and increase of capital over the course of a year; • the application of accelerated depreciation at the rate of 1.25% of the normal rate for spe - cific fixed assets, the list of which is fixed by a joint order of the Ministry of Mines, Industry and Technological Development and the Min - istry of Finance; • the extension of the duration of the loss carry-forward from four to five years; and • the imposition of a zero rate of VAT on products destined for export when they
are subject to this tax. However, products released for consumption on the local market are exempt from the duties and taxes levied on similar imported products. Mining company deeds are exempt from reg - istration and stamp duties until the first com - mercial production, with the exception of those relating to residential leases. 4.3 Transfer Tax and Capital Gains on the Sale of Mining Projects Transfers of capital gains on the transfer or sale of a mining project are subject to a 15% capital gains tax. This levy applies to all transfers, even outside Cameroon. 5. Mining Investment and Finance 5.1 Attracting Investment for Mining Investment in mining is attracted in the follow - ing ways: • strengthening the infrastructure to support mining, exploration and development activi - ties. 5.2 Foreign Investment Restrictions and Approvals in the Exploration and Mining Sectors There are no special rules for the approval of foreign investments in Cameroon subject to declarations to the Central Bank and Ministry of Finance. However, there are restrictions for for - eign investors in the mining sector in Cameroon. Indeed, foreign legal entities and individuals operating in the mining sector cannot obtain a • transparent regulation; • administrative facilities; • an attractive tax framework; and
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