The move is to attract productive investment for a sustainable and shared economic growth.
Cameroonians or foreign natural or legal persons, resident or not in Cameroon, conducting business therein or having shares in Cameroonian companies will hence have a wide-range of incentives through which they can develop their businesses for a sustainable and shared economic growth in the country. The private investment incentives are contained in an April 18, 2013 law deliberated by the National Assembly and promulgated by the Head of State. The law improves the November 8, 1990 ordinance and its subsequent amendments which hitherto guided investment in the country and which has been considered insufficient given the development vision of the State wherein the private sector is a key player.
Tax, Customs Incentives
During the establishment and operation phases, investors shall be exempted from stamp duty on establishment or capital increase, ease of immovable property used exclusively for professional purposes, transfer taxes on the acquisition of immovable property and stamp duty on contracts for the supply of equipment and construction of buildings. They will equally have full deduction of technical assistance fees in proportion to the amount of investment made, exemption from business license tax as well as immediate removal of equipment and materials related to the investment programme.
During the operation phase, which may not exceed 10 years, the investor may also benefit reduction or exemption of payment of some taxes, duties and fees. These include minimum fee, corporate tax, tax on profit, stamp duty on loans, borrowings, overdrafts and guarantees, among others.
Financial, Administrative Incentives
An investor who respects the exchange rate regime and the tax legislation shall enjoy the right to open in Cameroon and abroad local and foreign currency accounts and carry out transactions therein. He also has the right to cash and freely keep abroad funds acquired or borrowed abroad and directly pay abroad non-resident suppliers of goods and services.
Obligations
It's usually said that where there are rights, there are also obligations. And for an investor to enjoy the aforementioned and other benefits provided for in the law, he must among others employ during the operation phase and according to the size of the enterprise and sector, at least a Cameroonian by tranche ranging between FCFA 5 million and FCFA 25 million of planned investment. He must also have an annual export of 10 per cent to 25 per cent, net of taxes, use local natural resources of 10 to 25 per cent of the value of inputs as well as contribute 10 per cent to 30 per cent to value added of turnover.
