Taxation in Cameroon has several facets or plans. However, these different taxes do not always apply to all taxpayers. They differ according to the form of the company, expected turnover, activities, fields of activities and areas of intervention (local tax).
Natural or legal persons whose annual turnover exclusive of tax is less than XAF 10,000,000 are subject to payment of the discharge tax, except for logging companies, ministerial public officers and liberal professions.The following are also liable to the discharge tax:
- operators of table footballwith less than 10 machines;
- operators of pinball machines and video games with less than 5 machines;
- operators of slot machines with less than 3 machines.
Where the turnover cannot be determined, activities falling under the discharge tax shall be subject to a specific classification. The discharge tax is due per council, per establishment and per activity where several distinct activities are carried out in the same establishment. However, the street vendor pays the discharge tax only in the council of his residence. The discharge tax is paid on a quarterly basis, within fifteen days after the end of the quarter for which it is due. It is paid using a form. Anyone who carries out an activity subject to the discharge tax must fill out a tax return within 15 days following the beginning of the activity. He must pay the tax only as of the first day of the quarter during which he began to operate. Payment of the discharge tax gives the right to issuance of a payment form.Failure to display this formshall lead to closure of the establishment concerned.
Natural persons and corporate bodies whose annual tax-free turnover is greater than or equal to XAF 10,000,000 and less than XAF 50,000,000 are subject to the simplified tax system (STS). Also liable to the STS are natural persons and corporate bodies who carry out the following operations:
- Inter-urban transport of persons by minibuses and busses of less than 50 seats and operating at most 5 vehicles;
- Operators of table football having between10 and 25 machines;
- Operators of the pinball machines and video games having between 5 and 15 machines;
- Operators of slot machines having between 3 and 10 machines.
They must keep their accounts in accordance with the OHADA simplified accounting (SA) system. They may opt for the actual earning system if their turnover falls between XAF 30,000,000 and XAF 50,000,000.
They may not collect VAT. They are likened to end consumers.
Members of liberal professions and logging companies are automatically subject to this regime. Natural persons and corporate bodieswhose tax-free annual turnover is more than or equal to XAF 50,000,000 are liable to this type of tax system. Also liable to the actual earnings tax system are natural persons and corporate bodies who carry out the following activities:
- Inter-urban transport of persons by minibuses and buses of less than 50 seats and operating more than 5 vehicles;
- Inter-urban transport of persons by minibuses and buses of at least than 50 seats, irrespective of the number of vehicles operated;
- Operators of table football having more than 25 machines;
- Operators of the pinball machines and video games having more than 15 machines;
- Operators of slot machines having more than 10 machines.
Local taxes include all duties and taxes whose proceeds are assigned to local and regional authorities, in this case urban and rural councils, as well as city councils. These include:
- the business licence;
- the licence;
- the discharge tax;
- cattle tax;
- additional counciltax;
- direct and indirect council taxes.
Contribution of the business licence is a levy collected during the effective and usualexercise of a gainful activity. It is assessed on the basis of the turnover.
Anyperson liable to the business licence is required to report his activity to the taxation centre of the location of his establishment within two months of its commencement (new taxpayer), or within two months from the beginning of the year (taxpayer operating since the previous year and known to the tax authorities).
The business licence is paid in a single instalment. It must be paid at the latest within two months after the beginning ofeither the new activity, or of fiscal year in the event of renewal.
However, transporters are bound to pay their business licence within 15 (fifteen) days following the end of each quarter.
It is a contribution by any natural person or corporate body authorized to engage in the wholesale or retail sale at any capacity or the manufacture of alcoholic beverages, wine or spirits.
The following do not lead to payment of the license: sale of mineral water, soda water, flavoured or not by non-alcoholic extracts, and sale of fresh unfermented juice, wherethey are done in a facility separate from that containing the taxable beverages.
The license is payable by importers, producers and off-licence managers of taxable beverages according to the same rules as those applicable, as the case may be, to the business license or the discharge tax.It is annual and personal. For taxpayers liable to the discharge tax and selling drinks for which the license is due, the latter is calculated as follows:
- once the amount of the discharge tax fornon-alcoholic beverages;
- twice the amount of the discharge tax for alcoholic beverages.
For the other taxpayers selling taxable beverages, the rate of the licence is fixed as follows:
- twice the amount of the business licence for non-alcoholic beverages;
- four times the amount of the business license for alcoholic beverages.
In the event of sale of beverages in two shops for the same facility, the turnover to be taken into account is that reported for the sale of all beverages. Where in the same establishmentthe sale of drinks gives rise to several taxes, the highest license shall be taken into account. Payment for the license is independent of the tax to which it is attached. As such, even when the licence has already been paid, the main tax must be subjected to the same fate.
It is a tax paid by taxpayers engaged in a commercial or industrial activity that does not fall under the actual earning regime, the simplified tax system or the basic plan. In General, the following are liable to the discharge tax:natural person taxpayers with an annual turnover of less than XAF 15 million.
It should be noted that for the same activity, the discharge tax shall exempt the taxpayer from payment of the business licence, personal income tax and the value added tax.
The discharge tax is liquidated by the tax authorities in application of the tariff established by the local and regional authorities, beneficiaries of the proceeds of this tax within a bracket fixed by category of activity as follows:
- A:from o franc to 20,000 francs
- B: from 21,000 to 40,000 francs
- C: from 41,000 to 50,000 francs
- D: from 51,000 to 100,000 francs
Within each category, councilsmay apply rates specific to each activity within the limits of the relevant bracket.
The discharge tax is paid quarterly to the coffers of the Municipal Revenue Office or to the coffers of theattached accounting positionin localities that do not have a municipal revenue office, using a form comprising the full names and address of the taxpayer, thetax category and the quarter for which the payment is due, within fifteen days after the end of each quarter.
Those who carry out an activity liable to the discharge tax are required to make the declaration orally or in writing to the Tax Service or the office of the mayor in places where the Tax Service is not available, within fifteen days following the start of the activity.
Those who carry out an activity liable to the discharge tax in the course of the year are to pay this tax effective from the 1st day of the quarter in which they began to operate.
The discharge tax is due percouncil, per establishment and per activity in case of several separate activities in the same establishment.
However, the street vendor who shows proof of payment of the discharge tax in the council of his domicile is no longer taxable in the other councils for this same activity.
It is an annual tax paidby any owner or keeper of cattle.
The following may not give rise to collection of the tax:
- ploughing animals;
- animals belonging to the State;
- breeding stock imported from abroad;
- animals raised and used by charity exclusively for a social purpose.
The cattle tax is assessed in each administrative unit after a head count conducted on verbal or written declaration of the persons liable by the Sub-divisional Officer or District Head or by workers specially designated for that purpose.
The annual rate is XAF 200 per head of cattle.
The additional council tax is a 10% increase applied to the principal of some taxes, including the following:
- value added tax (VAT);
- personal income tax;
- tax on income from movable capital (IRCM), instituted by the provisions of Chapter 2 of Finance Law No. 2002/14 of 20 December 2002;
- contributions from the business licence and licences;
- property tax (according to the provisions of Section 581 of the General Tax Code of Cameroon). This tax is levied for the benefit of the councils;
- tax on games of chance and games of entertainment.
The additional council taxis calculated on both the principal and the tax increases to which it applies, and follows the fate of the elements on which it isassessed.
It appears distinctly on recovery notices and the recovery thereof is followedby the principal.
With the exception of the additional council tax on property tax which is entirely transferred to the councilwhere the building is located, the additional council tax on other taxes is distributed between the councils andcity councils, FEICOM and the State which particularly receives 10% as assessment and recovery costs.
Games of chance and entertainmentreferto games which, under whatever name, are:
- based on the hope of winning in kind or in cash likely to be acquired by chance or otherwise;
- aimed at providing mere entertainment.
The following fall under this category:
- animal racessuch as horse races;
- games of chance, counterpart games such as theboule, twenty-three, roulette, trente and quarante, blackjack, crap and the like;
- games known as “club games”, such as baccarat, chemin de fer, the two gaming table baccarat with a ceiling on the bank, écarté, American baccarat, the two gaming table baccarat with no ceiling on the bank, and the like;
- slot machines or machines which are operated by slotting a coin or token whether or not the player wins cash.
Operators of games of chance andgames of entertainment are subject to thecommon law tax system. They pay the following main taxes:
- Business licence: for businessmen operating in the form of corporate bodies as well as natural persons with an annual turnover higher than or equal to 15 million francs;
- VAT: operators of games of chance and games of entertainment are liable to VAT; the tax base is made up of the entire proceeds of the games;
- Income tax: natural persons who operate games of chance and games of entertainment are liable to personal income tax in the category of industrial and commercial profit, while corporate bodies are liable to the company tax;
- Tax on games of chance and games of entertainment: any natural person or corporate body operating games of chance and games of entertainment on the national territory as a main or ancillary activity is liable to this tax.
(a) Regarding casinos:
The tax base shall comprise all gross proceeds of games, including miscellaneous income, consistent with accounting records for each type of game which the operator is bound to keep.
The tax levy shall be 15% of the turnover of the period concerned. The tax thus calculated shall be increased by 10% representing additional taxes to be collected by the council having jurisdiction over the place of operation.
Any persons liable to the tax shall be bound to make a declaration at the competentTaxation Service of the area in accordance with Section M.I of the Manual of Tax Procedures.
The tax shall be paid within fifteen days following the month of taxable operations, using a special form available in taxation services.
(b) Regarding games of entertainment and slot machines:
The operation for profit of slot machines and appliances (table football, pinball etc.) and slot machines whose operation requires the introduction of a coin or token intended or not to give the player the chance to winshall be subject to payment of an annual flat-rate tax, non exclusive of the payment of other taxes, particularly the income tax and VAT. It shall be deductible when calculating the taxable income.
Whatever the tax system, the tax shall be paid as follows:
– Category 1: baby-foot: 20,000 francs per machine per year;
– Category 2: pin-ball machines and video game machines: 40,000 francs per machine per year;
– Category 3: slot machines: 100,000 francs per machine per year.
An additional charge of 10% for council tax shall be levied for the benefit of the local council of the area where the machine is operated.
It is a direct tax on profits of corporate bodies and which is levied on all of such profits. It is assessed over a period of 12 (twelve) months, corresponding to the fiscal year.
However, companies that begin their activities within the last 6 (six) months of the fiscal year shall be authorized to prepare their first balance sheet over 18 (eighteen) months.
Persons liable to the company tax are corporate bodies, and particularly:
- Incorporated companies,even when they operate as one-person companies;
- Partnerships andunderwriting groupsthat have opted for thecompany tax assessment;
- Public establishments, local and regional authorities and other corporate bodies governed by public law, which carry out a gainful activity;
- Civil society organizations that opted for the company tax.
The tax base of the company tax is equal to the turnover minus all the costs incurred by the company to obtain such turnover. Some expenses are however excluded from the scope of deductibility by law and must be reintegrated into the accounting income. Some products are not taxable and must be deducted from the accounting income.
- Only revenue of companies operating a commercial, industrial, handicraft or agricultural activity in a usual way in Cameroon are taxable;
- Such activities must be carried out either as part of anestablishment, or through a representative with no professional personality distinct from that of the company;
- However, when the operations carried out in Cameroon form a complete business cycle, they are taxable.
The taxable income is taxed at the single rate of 30% (33% ACT) included.
The company tax is paid spontaneously by the taxpayer no later than the 15th of the following month according to the following modalities:
- for persons under the actual profit regime, an advancerepresenting 2.2% (including ACT) of the turnover achieved in the course of each month is paid no later than the 15th of the following month.
- for persons of the STR, anadvancerepresenting 5.5% (including ACT) of the turnover achieved in the course of each month is paid no later than the 15th of the following month.
The balance shall be paid no later than 15 March of the following year. Where the total amount of tax to be paid is lower than the tax already paid considered as the minimum tax, the tax paid shall be considered as the tax to be paid.
- Taxpayers of thecompany tax and tax-exempt persons are required to sign a declaration of the proceeds achieved during the period used as basisfor assessment by March 15 of each year.
- The tax is paid by monthly instalments equivalent to 1.1% of the monthly turnover onor before the 15th of the month following that in which the transactions were carried out. The balance must be settled within the same timeframe as the declaration of proceeds.
- The persons liable must keep and preserve the accounting documents provided for by the OHADA accounting law.
The tax posts selected for this factor are compulsory levies and taxes that apply on income and dividends from companies and natural persons, because these posts can influence the decision to invest, no matter the origin of the inputs.
Note: Customs duties are treated separately because they are instruments of supranational economic policy and thus different in nature.
Local or regional: These include theadditional council tax (ACT) whose rate is +10% on some taxes (VAT, company tax, personal income tax andmovable capital income tax).ACTis increased by 10% on the principal rates. For example, the principal rate of VAT in Cameroon is 17.5% + ACT (10% of 17.5%) = 19.25%.
Business licence: 1% to 0.075%.
- VAT: 19,25%
- Data processing tax: 1.5%
- Phytosanitaryinspection tax: 1.5% with a maximum ofXAF 15,000
Income tax: from 10%to 35%
Note: There is a reinvestment plan (reduction of the tax base of the amounts reinvested in the company with a maximum of 50% of the taxable amount).
- From XAF 0 to XAF 1,000,000: 10%
- From XAF 1,000,000 to XAF 2,000,000: 15%
- From XAF 2,000,000 to XAF 3,000,000: 25%
- More than XAF 3,000,000:35%
It should be pointed out that these charges on the personal income tax are increased by ACT, i.e. 10% of the base rate.
There is a value added tax collected by the State and councils. It operates in a similar way as the VAT of other countries.
The general rate of the VAT in Cameroon is 17.5% (19.5% with the additional council tax) applied since 2005. There is a level zero (0%) which applies to exports of taxable products and all the transactions carried out with companies located in the industrial free zone and free points.
The persons liable are the following, where they carry out transactions that fall under the scope of VAT:
- Corporate bodies governed by public law (the State, local and regional authorities, public administrative establishments);
- Corporate bodies governed by private law (incorporated companies, partnerships, associations, economic interest groups, common initiative groups, public capital companies, mixed ownership corporations).
Transactions taxable by nature to the VAT are the following:
- Goods delivery;
- Service provision;
- Real estate works;
- Sales of used items and equipment by professionals;
- Disposals of fixed assets not included on the list of tax-exempt goods referred to underSection 241 of the Customs Code;
- Real estate transactions of any kind carried out by real estate professionals;
- Sales of petroleum products imported or produced in Cameroon;
- Games of chance and games of entertainment;
- Any other economic transaction carried out in return for payment.
Such is the case of:
- Deliveries to one-self (activities carried out by taxable persons for purposes of the enterprise or for other needs as part of operations. For example, a company consuming its own stock. In such case, it is the supplier and client. Taxing such transactions is intendedto ensure neutrality of VAT and tax fairness).
- Providing services to one-self: There are two types: the use of property assigned to the company for the private needs of the taxable person, those of his staff or for purposes other than for business. Where the good used opened the right to deduction, taxationshall be effective; the services provided free-of-charge by the taxable or liable person for his private needs, those of his staff or for purposes other than company business.
Exports are taxed at azero rate.
The General Tax Code lists out the various products and types of transactions exempt from VAT by their nature or by virtue of the law.
Any person liable to the VAT is bound to file with the Taxation Administration:
- A declaration by the 15th of the month following the end of completion of the transaction, where it is subject to the actual earnings regime (turnover>XAF 100 million) or the simplified taxation system (turnover between XAF 50 and 100 million);
- A declaration by the 15th of the month following the end of each quarter, where it is subject to the basic plan (turnover between XAF 15 and 50 million).
The excise duty is an ad valorem tax based on the consumption expenses and collected during delivery of some specific products on the local market. It operates according to the same mechanism as VAT. It concerns most goods dangerous to health, such as alcoholic beverages and luxurious goods.
These are primarily imported goods orlocal products, notably:
- Malt beer;
- Soft drinks, mineral water;
- Natural fruit juices;
- Fresh grape wines…the entire tariff position;
- Vermouth and other fresh grape wines;
- Other fermented beverages (e.g. cider, perry, mead);
- Brandies, whisky, rum, gin and spirits, etc. with the exception of 2208 90 10 “non-denatured ethyl alcohol…”;
- Cigars, cigarillos and cigarettes, tobacco or tobacco substitutes;
- Chewing tobacco and snuff;
- Other manufactured tobacco;
- Foie gras;
- Caviar and caviar substitutes;
- Dried, salted or brine salmon from the Pacific, Atlantic and Danube;
- Oriental pearls, precious stones;
- Precious metals;
- Private passenger vehicle of a capacity of more than or equal to 2,000 cm3.
This consists of:
- Delivery of property and goods by the producer or by the wholesaler, regarding sales or trade;
- Exceeding the customsduty for imports.
Excise duty is payable on delivery of goods with respect to sales and during import declaration, regarding imports.
Regarding imports, the base is determined by adding to the taxable value as defined by Sections 23 to 26 of the CEMAC Customs Code, the amount of the customs duty.
Regarding goods from a CEMAC member State, it is constituted by the value ex-factory, excluding the costs of forwarding.
There are two rates:
- The reduced rate of 12.5% applicable to personal passenger vehicles;
- The 25% rate which applies to all the other products listed above.
This rate is not increased by 10% in respect of the additional counciltax.
For the specific case of tobacco, the minimum tax is XAF 2,600 for 1,000 cigarette rods.
Persons liable to the excise duty are bound to declare and pay the tax in the same form and deadline as VAT.
The personal income tax is a direct tax based on the profit made by any person liable. PIT is deducted at source for wage earners. There is no family quotient mechanism.
PIT is payable by any natural person withtax domicile in Cameroon or who makes income froma Cameroonian source. This concerns the following:
- wage earners, retirees and persons with a small private income;
- traders, farmers and craftsmen;
- liberal professions.
- salaries, wages, pensions and life annuities;
- profits made by traders, craftsmen, farmers and the liberal professions;
- property income;
- income from movable capital;
- income ranking as such;
- income distributed by a joint-stock company topersons whoseidentity it does not reveal to the taxation authorities.
Pursuant to the provisions of Section 69, PIT is calculated by income category. Thus, regarding wage earners, their tax is calculated by application of schedule 2 below on the taxable income.
For taxpayers carrying outhandicraft, industrial, commercial and non-commercial activities as well as those with property income, the tax is calculated by applying the rate of 33% (including ACT) to the net income or profit. The tax thus calculated must not be less than 2.2% (including ACT) of the turnover achieved during the fiscal year for taxpayers under the actual earningsregime.
For those under the simplified tax system, the minimum tax was raised to 5.5% with effect from the 2016 Finance Law.
For movable capital income, the tax is calculated (including ACT) on the taxable income.
The taxable income of wage earners is equal to the gross income received, plus the benefits in kind or cash estimated according to schedule 1 below, minus the professional charges calculated at a flat rate of 30%, minus contributions paid to the State or NSIF as mandatory retirement contribution. The schedule of benefits in kind is applied on the gross amount collected.
The taxable income in the category of property income is equal to the difference between the gross amount actually received and the total expenses fixed at a flat rate of 30% of the gross income, unless there is justification of real costs.
Note: ACT applies only on the principal of PIT in respect of wages and salaries, the BIC, the BNC and the BA.
|Per domestic servant||5 %|
|Per vehicle||10 %|
|From 0 to 2,000,000||10 %|
|From 2,000,00 to 3,000,000||15%|
|From 3,000,001 to 5,000,000||25%|
|Over 5,000,000||35 %|
The tax base consists of the overall net income (sum of all net income categories)which the taxpayer had in a fiscal year, after a flat-rate reduction of XAF 500,000.
There are exemptions depending on the income categories. Such is the case of:
- Monthly salaries of less than XAF 52,000;
- Interests on savings accounts for investments not exceeding XAF 10 million;
- Interest on pay vouchers;
- Scholarship allowances;
- Overall net capital gains less than XAF 500,000 resulting from the sale of stocks, bonds and other capital shares by individuals;
- Corporate bonds;
- Allowances generally in reparation for damage suffered.
This tax affects services billed from abroad. According to the tax treaties, it may be deductible in the foreign country.
Its rate is 15%. Pursuant to theFranco-Cameroonian tax treaty, the rate has been brought down to 7.5% where the enterprise is domiciled in France, only with regard to charges for studies and services relating to technical, financial and accounting assistance. Other services with French companies remain subject to the standard rate of 15%.
Affixing the caption “registration” leads to collection of a tax referred to as “registration fee”. The registration fee is a tax imposed on public contracts (except employment contracts) and transactions under private power of attorney. This fee may be fixed, proportional, progressive or degressive.
For tax purposes, “public contract” refers not only to public contractsas envisaged by Decree No. 2004/275 of 24 September 2004 relating thereto, but also to the entire public order. Indeed, the 2005 Finance Law subjectedbidsforpublic contracts and orders less than 5 million francs to the formality of registration and payment of the related fees.
- Commercial urban land lease agreement: 15% of total expected rent;
- Urban real estate lease contract: 5% of the total of expected rents [Sections 341 and 543 of the General Tax Code (GTC);
- Sale of a motor vehicle: 5% of the amount of the sale;
- Procurement of more than XAF 5,000,000: 2% of the contract amount;
- Real property transactions: 15% of the transaction amount;
- Transactions on undeveloped real estate land: 5% of the transaction amount;
- Transactions on securities: 2% of the transaction amount;
- Marriage contracts: 1%
- Marriage contracts without contributions: fixed fee of XAF 20,000;
- Capital increase: SinceLaw No. 2009/18 of 15 December 2010 to institute the Finance Law of the Republic of Cameroon for the 2010 financial year, Section 546 (b) of the General tax Code provides that registration of articles of association, extension of company and capital increase shall be free-of-charge;
- Transfer following death: progressive charge (2 to 10%);
- Will: fixed fee of XAF 12,000.
Registration fees are levied on supply contracts, service contracts and works contracts. Depending on its magnitude, the public procurement is made through:
- A public contract (orders over XAF 30 million);
- Order sheet (orders over 5 million and less than or equal to 30 million);
- Purchase order (orders under 5 million).
Taxes, duties and charges applicable on public contracts consist of:
- Value added tax (VAT). The applicable rate is:
- 25% on the tax exclusive value of the contract;
- Advance on income tax. The applicable rate is:
- 1% on the tax exclusive market value for taxpayers under the simplified tax regime and the actual benefit regime;
- 5% on the tax exclusive value of the contract for taxpayers under the basic regime.
- Special Income Tax (SIT) on services provided by companies domiciled outside Cameroon. The applicable rate is:
- 15% of the gross amount of the royalties and remunerations served, including the SIT.
- Registration fees. The applicable rate is:
- 2% of the tax exclusive value of the contract for order sheets and public contracts (public orders equal to or more thanXAF 5 million);
- 5 % of the tax exclusive value for purchase orders (public orders less than XAF 5 million);
- fixed fee of XAF 50,000 and graduated stamp duty for jointly financed public contracts for which the external financing is more than 50% of the contract amount.
- Dimension stamp duty: payable on any type of contract.
- Value added tax (VAT);
- Advance on income taxes;
- Special Income Tax (SIT), on the services provided by companies domiciled outside Cameroon.
- Presentation of the contract to the registration formality by the successful bidder of the procurement;
- Full payment of the fees at the revenue officer of the revenue office;
- stamping of captions by the head of main taxation centre or by the Head of Major Enterprises Division.
- Special Contracts Registration Unit, near the Main TaxationCentre of the place of execution of the contract;
- Special Registration Unitat ministries and public establishments for purchase orders.
One month from the date of notification of the award of the contract to the successful bidder.
- registration information;
- the need for the secured receipt as proof of payment of registration fees equal to 2% or 5% of the tax exclusive value of the public order,depending onthe nature thereof;
- signature of the authority empowered to issue the registration formality.
- a copy of the commitment form or purchase order;
- a copy of the contract (purchase order, order form, public contract);
- final invoice;
- an issue note for the settlement of duties and taxes due;
- a photocopy of the national identity card of the successful bidder or his representative;
- a photocopy of the successful bidder’s taxpayer’s card.
- false registration information;
- false receipts;
- undervaluation of registration fees;
- splitting of registration fees.
- Tax penalties
- collection of a surcharge, as penalties, in the event of default by the successful bidder;
- collection of an additional half-fee in the event of insufficient assessment;
- collection of anextra triple fee in the event of concealment.
- Administrative and penal penalties
- forfeiture of the right to practice (M150 of the GTC);
- ban from tendering for public contracts (M79 and M 105 of the GTC);
- administrative proceedings for the recovery of taxes due (M 51 et seq. of the GTC);
- criminal prosecution (M 107 et seq. of the GTC).
The oil business is divided into two sectors:
- the upstream sector consisting of exploration, research or production;
- the downstream sector which consists of mining and distribution.
Like the oil activity, the taxation of this sector has two sides:
- upstream oil taxation;
- downstream oil taxation.
1 / What is the legal framework of petroleum tax?
Petroleum tax is governed by the following instruments:
- Sections 229 to 238 of the General Tax Code, together with the various amendments thereto;
- Ordinance No. 94/4 of 16 February 1994, together with its various amendments;
- Law No. 99/13 of 22 December 1999 to institute the Petroleum Code;
- Decree No. 2002/32 PM of 3 January 2002 to lay down conditions of implementation of the above-mentioned Law;
- Oil companies establishment agreements.
2 / What are the tax levies of the petroleum activity?
With the exception of taxes and duties provided for by ordinary law, the petroleum business is subject to the following specific taxes:
- oil companyprofit tax;
- oil products special tax. Its amount is fixed as follows:
- unleaded fuel: 120 francs/litre;
- diesel: 65 francs/litre.
According to Section 232 of the General Tax Code, the operative event of this tax is constituted by:
- the delivery of taxable products by the National Refining Company;
- the introduction of products on the territory;
- the first use of products with regard to deliveries to oneself.
The proceeds of this tax are distributed as follows:
- Road Fund, XAF 75 and 65 respectively to be levied on the litre of unleaded fuel and diesel;
- Public Treasury XAF 45
- Fixed duties and superficial royalty;
- Proportional fees.
- Obligation to declare
- Declaration of the oil company profit tax: any oil company established in Cameroon is bound to declare all the profits made, determined by taking into considerationtheproceeds and charges;
- Special tax on petroleum products: SCDP and SONARA have up to the 20th of the same month to subscribe to and file their petroleum products special tax declaration of month n-1 which specifies in the annex a breakdown of this declaration by “Marketer” or any other petroleum products distributor, including the share relating to self-deliveries.
- Declaration of fixed duties and superficial royalties: superficial royalties are declared no later than 31 January of the year.
- Payment obligations
- Declaration and payment of the various taxes are done simultaneously.
- Petroleum company tax is paid by third parties, no later than31 October, 31 January and 30 April.
- The special tax on petroleum products must be paid monthly by Marketers to SCDP, for direct or indirect removals from SCDP depots, and to SONARA for direct or indirect removals from the Refinery (Limbe SCCP), no later than the 15th of each month.
- The superficial royalty and fees are paid no later than 31 January of the year.
Annual forestryroyalties:This annual tax is based on the area of the forest concession by a rate per hectare decided during a call for tenders, which includes a technical bid (weighted at 30% of the total) and a financial bid (weighted at 70% of the total). The floor rate (minimum required) is XAF 1,000 per hectare (€1.52). The average bid retained was around XAF 2,800 per hectare (€4.27) in early 2006. The highest royalties are around XAF 8,000 per hectare (€ 12.2).
Export surtax: Surtax on logs ranging from XAF 500 to 4,000 per m³ depending on the species. The main exported species, Ayous, incurs a surtax of XAF 4,000 per m³.
Note: Administrative prices are voted semi-annually by theNational Assembly on the proposal of the customs department.
According to the provisions of Sections 114 and 115 of the General Tax Code of Cameroon, the following are eligible for the structuring projects tax regime:major companies that meet the conditions set by Decree No. 2008/2304/PM of 28 July 2008 to specify the conditions of implementation of the structuring projects special tax regime of the General Tax Code of Cameroon.
The tax benefits relating to this regime are:
- Exemption from the business license for the first 2 (two) years of operation;
- XAF 50,000 fixed rate registration of the articles of incorporation, extension and capital increase and real estate transfers directly related to the implantation of the project;
- Exemption from VAT on local purchases of building materials and on imports for project implantation;
- Application of accelerated depreciation at the rate of 1.25 of the normal rate for specific fixed assets acquired during the installation phase;
- Extension of duration of the loss carry-over from 4 (four) to 5 (five) years.