This overview provides a detailed analysis of the corporate tax regime in Cameroon for 2025, presenting current rates, structures, and applicable surtaxes relevant to businesses operating within the country.
Corporate Income Tax Structure in Cameroon
Cameroon’s corporate income tax (CIT) system is progressive and assessed on corporate profits. The rates vary depending on the taxable income brackets, with clear thresholds for businesses to reference in 2025. The assessment is based on a company’s net taxable profits, and the currency used for all tax calculations is the Central African CFA franc (XAF).
CIT Rate Progression Table (2025)
| Taxable Income (XAF) | Rate (%) |
|---|---|
| 0 – 3,000,000,000 XAF | 27.5% |
| Over 3,000,000,000 XAF | 33% |
For reference, using an exchange rate of 1 USD = 600 XAF: 3,000,000,000 XAF is approximately $5,000,000 USD. Always confirm the latest rates for large currency conversions.
Surtaxes and Additional Levies
Beyond standard CIT, companies in Cameroon are subject to additional levies. The most notable is the Additional Council Tax, which applies at a flat rate on several tax categories, including:
- Corporate Income Tax (CIT)
- Personal Income Tax (PIT)
- Withholding Tax (WHT) on income from stock and shares
- Value Added Tax (VAT)
- Excise Duties
- Special Income Tax (SIT)
- Registration Fees for Public Contracts
| Surtax Name | Rate (%) | Conditions |
|---|---|---|
| Additional Council Tax | 10% | Applies to CIT, PIT, WHT on income from stock and shares, VAT, excise duties, SIT, registration fees (public contracts) |
This surtax is levied in addition to the headline corporate income tax rates, and compliance requires careful reporting across all applicable tax bases.
Key Features of the Corporate Tax Regime
- Tax Calculation Basis: CIT assessed on net taxable profits, not turnover.
- Tax Brackets: Two main thresholds: a lower rate for profits up to 3 billion XAF, and a higher rate above this.
- No Published Flat Rate: Cameroon does not use a flat CIT rate for all companies; instead, the regime is progressive.
- Add-on Surtax: The 10% Additional Council Tax increases the effective rate for many companies.
- Currency: All calculations in Central African CFA franc (XAF).
Pro Tips for Navigating Cameroon’s Corporate Tax (2025)
- Assess your net taxable profit to determine the correct applicable rate and bracket for the current tax year.
- Factor in the Additional Council Tax to avoid underestimating your total tax liability, as it applies broadly to CIT and other obligations.
- Keep meticulous records; Cameroon’s progressive and multi-levy system requires accurate documentation for compliance and potential audits.
- When dealing with contracts or investments tied to stock and shares, be mindful of the withholding tax implications under both CIT and council tax.
- Utilize official resources on the Cameroon Tax Administration portal to stay updated on regulatory changes or new tax measures.
Additional Considerations
There is no information currently available regarding any required minimum or maximum holding periods tied to corporate tax obligations. Cameroon’s authorities may periodically update these regimes, so companies should monitor official bulletins for any changes that could affect compliance or planning.
To summarize, Cameroon’s corporate tax system in 2025 is progressive, with key tax brackets that affect effective rates depending on company size. The significant Additional Council Tax means total liabilities are usually higher than the headline CIT rate alone. As always, consulting official resources and keeping detailed records are essential for smooth compliance under the current regime.