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Understanding Tax Obligations for Foreign Business Activities in Cameroon

Table of Contents

In order to foster international business relations and prevent tax evasion, Cameroon has entered into various tax treaties since the 1970s. These agreements aim to eliminate double taxation and establish mutual assistance rules.

As of December 31st, 2022, Cameroon has ten active tax treaties, including bilateral agreements with countries such as France, Canada, Tunisia, Switzerland, South Africa, Germany, and Morocco. Additionally, there are multilateral conventions addressing income taxation between CEMAC member states, mutual administrative assistance in tax matters, and measures to prevent base erosion and profit shifting.

Registration and Tax Declaration Requirements for Foreign Businesses

Foreign individuals or companies conducting business activities in Cameroon without a local presence must comply with registration and tax declaration formalities.

It is essential to appoint a reputable representative approved by the tax authorities for this purpose. Once registered, a Tax Identification Number (TIN) will be assigned to facilitate tax declarations.

Tax Payment Obligations

Foreign businesses are required to declare and make advance tax payments, ranging from 2% to 20% of their turnover generated in the previous month. The applicable percentage depends on the taxpayer’s tax system or the nature of their activities.

This advance payment, including an additional 10% for communal centimes, should be made by the 15th of each month. Additionally, an annual declaration of the previous year’s results must be submitted no later than March 15th.

Tax Obligations for Foreign E-commerce Platform Operators

Foreign operators of e-commerce platforms operating in Cameroon must register with the Cameroonian tax authorities to ensure compliance. Failure to register can lead to suspension of platform access within the country. Registration, declaration, and tax payments for e-commerce activities can be conveniently completed through the tax administration’s online portal.

Conclusion

By adhering to the necessary registration and tax declaration formalities, foreign businesses can conduct their activities confidently in Cameroon. Compliance with tax obligations not only promotes a favorable business environment but also ensures transparency and contributes to the overall economic growth of the country.

For more information and assistance regarding tax obligations for foreign businesses in Cameroon, please contact us.

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Epanty Mbanda

Attorney-at-law | Corporate-Commercial | Technology (FinTech+Blockchain+Cryptocurrency) | Securities | Tax| Managing Partner at 4M Legal and Tax ( Law Firm in Cameroon)

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