Cameroon legal and accounting and tax considerations in 2024

1. The corporate income tax in Cameroon is applicable a standard rate of 33%. Legal entities must register for taxation with the Ministry of Finance and must file annual tax returns by 15^th March following the end of the tax year;
2. Foreign companies entering the Cameroon market to do business, will enjoy a 0% corporate tax rate on annual net profits for the first two years of business. It is also possible to request an extension to this benefit;
3. The Value Added Tax (VAT) in Cameroon is levied at a standard rate of 19.25%. Companies with a taxable annual turnover must register for VAT and file returns by the 15^th of each month;
4. A 16.5% withholding tax is applicable on i) dividends paid to resident and non-resident companies ii) interests paid to non-resident companies, this can however be reduced where a double tax treaty is applicable;
5. A reduced corporate tax of 10% is charged on dividends remitted to companies provided i) the company is headquartered in Cameroon or CEMAC region ii) the beneficiary owns at least 25% of the company shares, and iii) the shares remain in the beneficiary’s name for a period of at least 2 years;
6. A 15% withholding tax is applicable on royalties paid to non-resident companies. The rate may however be reduced where a double tax treaty applies;
7. Capital duty is chargeable depending on the companies registered capital at a regressive rate of 2% and 0.25%;
8. Employers are required to remit monthly i) a social security contribution of 11.2% of their employees’ basic salary ii) a 2.5% payroll tax chargeable on their employees’ total salaries and benefits;
9. Other taxes in Cameroon include i) 15% transfer tax applicable on sale of businesses ii) 15% special income withholding tax on payments made to suppliers not located in Cameroon;
10. A 11% capital gains tax is applicable on income derived from sales of shares;
11. Companies in Cameroon may carry forward their business losses for a period of 4 years but a carryback is not permitted;
12. Cameroon has so far signed 4 double tax treaties with namely Canada, United Kingdom, Tunisia and France;
13. Healy Consultants will assist the Client with i) documenting and implementing accounting procedures ii) implementing financial accounting software iii) preparing financial accounting records and iv) preparing forecasts, budgets and performing sensitivity analysis.