The Finance Law for 2016 (Law n° 2015/019) was passed on 21 December 2015 and entered into force on 1 January 2016. The following is a summary of the most relevant tax measures:

i. Corporate Income Tax (CIT)

In 2015, subject to tax treaties, a limitation was introduced to the deductibility of royalties paid by a Cameroonian company for the use of patents, trademarks, designs and models.

The Finance Law for 2016 reduces the scope of this limitation. From now on, it only applies if the royalties are paid to companies holding a direct or indirect stake in the management or in the share capital of the Cameroonian company.

ii. Special Income Tax (“Taxe Spéciale sur le Revenu” - TSR)

Subject to tax treaties, the TSR is levied on amounts paid abroad, as remuneration for services provided or used in Cameroon.

The Finance Law for 2016 expands the list of income subject to the TSR to include payments for assistance, equipment rental and provisions of services of any kind provided to oil companies by non-resident companies – including during the exploration and development phases –, except if provided at cost by an affiliated company.

iii. Value Added Tax (VAT)

Companies with accrued quarterly VAT credits exceeding a certain threshold shall, from now on, obtain validation of such credits by the competent authority in order to be able to offset them.

For additional information, please contact:
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