Tax incentives for disaster zones in Cameroon

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Tax incentives for disaster zones in Cameroon

Tax incentives for disaster zones

Image Credit: CNA

The tax law in Cameroon makes provision for targeted tax incentives for disaster zones in the country. This special tax relief is to encourage businesses to invest in such zones. This will also help in post-disaster revitalization of the mentioned zones.

In this regard, the Prime Minister of Cameroon, Dion Ngute, signed a decree declaring certain zones as disaster areas. This includes the Far North, North West and South West Regions of Cameroon.

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The Far North Region of Cameroon is still suffering from invasions from Boko Haram in the northern parts of Cameroon. Meanwhile the Anglophone crisis which the government has always insisted is under control is worsening on a daily basis.

The decree was signed in conformity with Section 121 and 121 (a) of the General Tax Code of Cameroon.

By disaster zones, we are talking of areas that economic activities have been halted or slowed down due to certain happenings. Such causes include:

  • Insecurity – armed struggle in the NW & SW Regions and Boko Haram atrocities in the Far North
  • Natural catastrophes of every category – flood, famine, drought and so on

It should be noted that disaster zones or areas in Cameroon are to be specified by regulation.

Tax Exemptions For Economic Disaster Areas in Cameroon

Taxes & Duties To Be Exempted

The government of Cameroon has put in place the type of tax incentives that companies get from investing in economic disaster zones. Below are some of the exemptions from taxes and duties:

The first three years – installation phase

Businesses are exempted for this on condition that the installation phase of the new investment should not go above 3 years.

  • The business will get a business license waiver
  • Exemption from paying VAT on purchases made for both goods and services
  • Exempted from property tax for project buildings
  • They don’t pay registration fees on property transfers related to the project

During seven years – operation phase

  • Exemption from business license tax during the first seven years of operations.
  • The business will be exempted from company tax and minimum collection, as well as a waiver from contributions and taxes on salaries paid to workers.

Read Also: Business License Tax Exoneration in Cameroon

Who Benefits From The Tax Incentives For Disaster Zones

Both Old & New Businesses

According to the law, businesses that carry out new investments in such areas are exempted from certain taxes and duties. This means it benefits both existing and new businesses.

In the case where new investments are carried out by old companies, the exemptions will apply only on the profits and operations of the new investments. The company in such a case is obliged to carry out separate accounting for such operations.

That said, the tax authority must approve of the planned investments. When it is approved, they will issue a compulsory discharge at the end of each fiscal year for renewals. This is based on the actual implementation of the investment plan.

On the contrary, if the business is non-compliant with the approve investment plan, it will lose the tax incentives. It doesn’t just end there – the business will have to settle unpaid taxes and duties with no prejudice. This means they will not pay penalties due to late payments or interests.

Necessary Requirements To Be Met

Businesses Must Meet Up Specific requirements To Benefit From Exemptions

For you to benefit from the exemptions referred to above, your investment must meet up the below criteria:

  • Must be able to create a minimum of ten (10) direct jobs
  • Use the raw materials that are produced in the respective zones

I will be sharing with you the raw materials found in these disaster zones. Don’t hesitate to subscribe at the end of this post.

From these two requirements, you will understand that the government is doing this in a bit to step up employment and encourage the creation of transformation businesses.

Read Also: What An Entrepreneur Can Do To An Economy

Time for you to act!

  • Are you an investor interested in starting a business in Cameroon?
  • Have you been planning to register your business?
  • Were you afraid of starting your business in Cameroon because of taxes and duties on machines?
  • Don’t you think it is time for you to start that transformation business you were planning?

This is an opportunity for you. Hit the iron while it’s still hot. We at OpenHub Digital will help you to:

  • Register or incorporate your business
  • Finalize your dream in to a workable business plan
  • Guide you on how to manage your project
  • Design a beautiful and interactive website for information about your product or service
  • Help brand your business and increase to attract more customers

We have an experience team and partners at your disposal.

Don’t forget to subscribe below for I will be sharing with you the possible businesses that your can carry out in these economic disaster areas.

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Image Credit: CNA

Kermann Lobga Derick
Kermann Lobga Derick
Content Writer / Blogger | Small Business Coach | Branding Expert | Entrepreneur| Dad Kermann Lobga is a copywriter, results-oriented digital marketing professional and an entrepreneur with more than 14 years of experience.

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