| Cameroon Income Tax Rates Cameroon personal income tax rates for 2009 are progressive, between 10% - 35%, plus 10% surcharge added to the final tax amount.
Taxable Income / Tax Rate %
XAF 0 - 2,000,000 10%
XAF 2,000,001 to 3,000,000 15%
XAF 3,000,001 to 5,000,000 25%
Above XAF 5,000,000 35%
An additional 10% surcharge must be added on to above rates.
Cameroon residents are taxed on their incomes perceived in Cameroon and abroad. The nonresidents are imposed only on their Cameroon incomes. People are considered as residents if they stay more than 183 days in the country and if their main residence is in Cameroon.
Tax Allowance: A yearly XOF 500,000 tax allowance is granted.
Tax Deductions: Allowable tax deductions include business expenses, social security contributions, professional expenses (fixed at 30%) and a real estate tax deduction (fixed at 30%).
Tax Year: Cameroon tax year begins on July 1st and ends on June 30th of the next year.
Taxable Income: A single income tax, based on graduated rates applies to the net total income derived from various categories of income. Income categories include: salaries, wages, pensions and life annuities, income from stocks and shares, income from real estate, profits from handicraft, industrial and commercial activities, profits from agricultural activities and profits from noncommercial and related professions.
Capital Gains Tax: Capital gains derived from the sale of shares in Cameroon are subject to tax at a final rate of 11%. Unrealised gains arising from company mergers are not subject to personal income tax if the new company has its registered office in Cameroon or another CEMAC state.
Cameroon Corporate Tax RatesCameroon corporate tax rate for 2009 is 38.5%. The 38.5% corporate tax rate is 35% + 10% surcharge.
The basic corporate tax rate of 35% is reduced to 30% for companies during their first 3 years of listing on the national stock exchange of Cameroon.
Resident corporations in Cameroon are taxed on their worldwide income, nonresident corporations are taxed only on Cameroon source income. An entity is deemed resident if its registered office, centre of activity or management is located in Cameroon or if it has resident employees in Cameroon that provide services to customers.
Tax Incentives: Eligible companies may benefit from a tax reduction of 50% of qualifying reinvestment, providing the reinvestment does not exceed 50% of the profits declared during the relevant tax year. Enterprises in the information and communications technologies sector are subject to a tax reduction of 25% of qualifying reinvestment, provided the tax reduction does not exceed 25% of the profits declared during the relevant tax year.
Foreign Tax Credit: Foreign tax credits are not available in Cameroon.
Cameroon Withholding Taxes
Dividends: A withholding tax of 16.5% (15% withholding tax plus 10% surcharge) applies to dividends paid to both Cameroon residents and nonresidents. The tax rate may be reduced under an applicable tax treaty.
Interest: A withholding tax of 16.5% (15% withholding tax plus 10% surcharge) applies to interest paid to nonresidents. The tax rate may be reduced under an applicable tax treaty.
Royalties: Royalties paid to nonresidents are subject to a 15% withholding tax (the 10% local tax is not applicable). The tax rate may be reduced under an applicable tax treaty.
Branch Remittance Tax: There is no branch remittance tax in Cameroon. Branches are taxed in the same way as the companies.
Capital Duty: The formation of a company and subsequent capital increases in Cameroon are subject to a regressive tax duty between 2% and 0.25%, depending on the amount of capital.
Payroll Tax: Employers in Cameroon are required to make monthly contributions of 2.5% of the total amount of salaries and fringe benefits of their employees to the Housing Loan and Employment Fund of Cameroon.
Real Property Tax: Cameroon property tax is payable annually on real estate for which an ownership certificate or an administrative or judicial order has been issued. Tax is charged at 0.1% of the assessed property value, with the usual 10% local tax.
Social Security Tax: Employers in Cameroon pay 11.2% of employees' basic pay, tax allowances, and tax benefits monthly to the National Social Insurance Fund of Cameroon. These contributions are acpped at XAF 300,000 per month. Employers in Cameroon must also contribute 1.75%, 2.5% or 5% of total salaries, depending on the risk category of activities performed by employees.
Transfer Tax: The sale of a business in Cameroon is subject to a transfer tax rate of 15%. A special income tax at the rate of 15% is withheld on payments made to suppliers of services located abroad. Taxes are imposed on the sale of petroleum products, liquor and business licenses. The business license tax is imposed at progressive rates on the enterprise's annual turnover.
Tax Year: Tax year in Cameroon is the calendar year.
Cameroon VAT (Value Added Tax) RateStandard Value Added Tax (la Taxe sur la Valeur Ajoutée - TVA) rate in Cameroon is 19.25%. This is, 17.5% basic tax rate plus 10% surcharge.
Exports are zero VAT rated. An excise duty to the rate of 25% is applicable to the cigarettes, drinks, cosmetics or products known as of luxury: jewels, precious stones.
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