Cameroon

Business Environment

Business Practices

General information: CGCI, Invest in Cameroon
Opening hours and days: Banks as well as Government offices are open from Monday to Friday from 7h30 to 15h00.
Shops are open from 9h00 to 12h00 and in the afternoon from 15h00 to 18h00 from Monday to Saturday.

Public holidays

New Year	1st January
Aid el Adha	Variable
Aid el Fitr	Variable
Youth Day	11th February
Saint Friday	March or April
Labor Day	1st May
Ascension	May
National Day	20th May
Assumption	15th August
Christmas	25th December

Periods when companies usually close

Christmas (companies function at a slackened pace during this period)	15th December to 5th January
The Easter week	variable according to the year

Accounting Rules

Tax year: The fiscal year extends from 1st January to 31st December. A printout is given by the Directorate of Taxes.
Accounting standards: Even though Cameroon has a legislation and an institutional base necessary for a transparent fiscal system, the administrative slowness, the excessive number of administrative documents to be given and the corruption, are some of the recurring problems that paralyzes the Cameroonian fiscal system.
Accounting regulation bodies: Ministry of Commerce
Accounting reports: - At the end of each accounting year, the manager discloses the financial statements synthesis, in compliance with the Uniform Act regulations concerning the organization and harmonization of accounts.
-The Manager must prepare an annual report.
Publication requirements: - An annual report must be published.
- Any modification in the presentation of the financial statements synthesis must be indicated in the annual report and, if possible, in the report of the auditor.
-The accounting documents.
Professional accountancy bodies: National Order of Certified Public Accountants and Auditors
National Order of Certified Public Accountants of Cameroon
Certification and auditing: The verification of accounts is undertaken by auditors.
They are engaged in certifying the regularity and the true nature of the financial statements and to give their certification with certain reservations or to refuse it, precising the reasons.
Accounting news: At this point, there does not exist a financial information centre in Cameroon. However, information or queries relating to finance can be obtained from the Taxation Centre.

Tax Rates

Consumption taxes

Nature of the tax: Value Added Tax (VAT)
Tax rate: The VAT rate is 19.25%. An excise duty of 25% is applicable to cigarettes, drinks, cosmetics or luxury products : jewels, precious stones.
Reduced tax rate: A 0% rate applies for exported goods and services. Many operations are exempted.
Other consumption taxes: For more information, click on the following links: Invest in the Franc Zone and Doing Business in Africa

Corporate taxes

Company tax: 38.5% in total (35% of corporate tax + 10% of a local tax)
Capital gains taxation: Capital gains are treated as ordinary business income and taxed at normally company tax rates.
Main allowable deductions and tax credit: The deductible charges are: straight-line depreciation ; provision for doubtful debtors and depreciation of stocks ; salary to employees (including benefits in kind) ;Health Insurance Premium for the benefit of Cameroonian and foreign employees ; rentals for property rented by an associate manager with a capital holding of less than 10% in the company ; interests on current accounts of associates and shareholders subject to the condition that their rate does not bypass that of the TIAO increased by 2 points ; Head Office charges, as well as those related to research, technical assistance, financial or accounting charges, given to Western companies, subject to certain limitations.
Other corporate taxes: The non-deductible taxes are the following:

Corporate tax, income tax (proportional tax and progressive surcharge), the special tax on income supported finally by the Cameroonian society, proportional tax on income from capital securities as well as penalties and fines of all nature.

Individual taxes

Tax rate

Personal Income Tax is due every year with respect to the income earned by the taxpayer or which he possessed during the same year. Personal Income Tax is applicable essentially to persons: - who have a fiscal residence in Cameroon; - who receive income from Cameroon - who fall under the jurisdiction of the Cameroonian taxation under international fiscal agreements; - who are subject to Cameroonian Personal Income Tax due to their status	Tax is paid by applying the Tax Schedule given under, after deduction of 500 000 F CFA on the amount of net categorical revenue, as defined by Article 69 of the General Taxation Code. The level of taxation thus obtained is increased by 10% according to the additional common cents.
From XAF 0 to 2,000,000	10%
From XAF 2,000,001 to 3,000,000	15%
From XAF 3,000,001 to 5,000,000	25%
More than XAF 5,000,000	35%

Allowable deductions and tax credit: The non-deductible taxes are the following: corporate tax, income tax (proportional tax and progressive surcharge), the special tax on income supported finally by the Cameroonian society, proportional tax on income from capital securities as well as penalties and fines of all nature. On the other hand, all other taxes are deductible from the profits liable for corporate tax.
Special expatriate tax regime: A french expatriate from the private sector can settle his account at the end of his stay. A declaration with the Central Bank is not necessary.

Double taxation treaties

Countries with whom a double taxation treaty have been signed: See the list of the convention signed
Whithholding taxes: Dividends: 16.5%, Interest: 16.5%, Royalties: 15%

Sources of fiscal information

Tax Authorities: Directorate General of Taxes
Other domestic resources: Page 18

Intellectual Property

National organizations: Cameroon has signed an agreement at the time of the establishment of the World Organisation of Intellectual Property (WIPO).
Regional organizations: Cameroon is a member of the African Intellectual Property Organization since 24th February 1999.

National regulation and international agreements

Type of property and law	Validity	International agreements signed
Patent The Bangui Agreement of March 1977	20 years	Strasbourg agreement concerning the International Patent Classification
Trademark Agreement revising the Bangui Agreement of 2nd March 1977, after the creation of the African Intellectual Property Organization on 24th February 1999	10 years, renewable for consecutive periods of 10 years	Trademark law treaty Nice agreement Protocol relating to the Madrid Agreement
Design Agreement Revising the Bangui Agreement of March 2, 1977, on the Creation of an African Intellectual Property Organization, February 24, 1999	5 years, renewable for two further consecutive periods of 5 years
Copyright Law no. 2000/011 related to copyright	10 years	Convention for the Protection of Producers of Phonograms against unauthorized duplication of their phonograms Rome convention for the protection of performers, producers of phonograms and Broadcasting organizations WIPO copyright treaty
Industrial Models Bangui Agreement of March 1977	20 years

Legal Framework

Independence of justice: Judiciary is not independent in Cameroon and is highly subject to political influence. A high degree of corruption exists in the country.
Equal treatment of nationals and foreigners: Foreigners cannot expect a fair trial from the country's judicial system.
The language of justice: The judicial languages in the country are French and English.
Recourse to an interpreter: The Cameroonian government provides for interpreters for defendants. However, these interpreters are called only once the trial starts. Thus, for all the steps before the trial, one has to make do without an interpreter. In addition, the transmission of legal information is always problematic. The message is often distorted and the interpreter does not always find the right words to translate it.
Sources of the law and legal similarities: The main source of the law is the constitution of 1972 (approved by referendum, and revised in January 1996) which is based on the French civil law system. The country accepts compulsory ICJ jurisdiction.
Checking national laws online: Laws on finances
Cameroon Laws

Standards

National standards organizations: Standardization and Quality division of the Ministry of Industry, Mines and Technological Development
Integration in the international standards network: The Cameroonian standards are generally derived from the French ones. Cameroon is a member of the African Intellectual Property Organization (AIPO).It is also a member of the Paris Convention concerning intellectual protection, as well as a member of the International Organization for Intellectual Property.
For more information click on AIPO.
Classification of standards: For more information, visit the website of the Ministry of Industry, Mines and Technological Development.
Online consultation of standards: For more information, click on AIPO.
Certification organizations