Cameroon's tax is administered by The Cameroon Department of Tax. Some of the corporate tax rates and incentives are highlighted below.

• The corporate tax rate is 38.5% with a 25% withholding tax (16.6% if the receiver is resident in Cameroon)

• Businesses are subject to a turnover tax of 18.7% (8.8% for certain goods)

• Capital gains tax is 25%

• Incentives include:

  • a three-year exemption from registration fees and taxes on loans for companies setting-up

  • a 50% reduction on company tax for the first year

A five-year tax holiday giving:

• a 50% reduction in company tax

• a 50% reduction in withholding tax, and

• a carrying over of losses to the following five years is also available

Export: Companies exporting finished or semi-finished products are exempt from paying export duties, insurance and transportation charges on the products exported.

Import: Raw materials and intermediate products imported from Central African countries, along with water and electricity, are exempt from import duties.

Companies establishing themselves in rural areas are able to deduct 50% of transportation costs.

There are double taxation agreements with France, Canada and Switzerland.

As of January 1999, a value added tax (VAT) of 18.7% is charged on goods and services, with certain exceptions, such as milk, flour, books and pharmaceuticals.

Source: International Correspondence Lawyers & Financial Experts