(Business in Cameroon) - In its 2022 finance law, Cameroon has updated the conditions required for oil contract holders at their research and development stage and their foreign contractors to benefit from exemption from special income taxes.
According to article 225 of the finance law, to benefit from the exemption, the contractors should offer their services at actual market prices and not have a permanent facility in Cameroon.
The text stresses that every year, tax services will check whether the oil holders and their contractors meet the required conditions to benefit from the exemption. If they are not compliant with the required conditions, they can choose to pay a special 3% income tax.
Up till now, at the research and development stage, oil contract holders and their contractors were granted the exemption without any backing condition, therefore causing a revenue shortfall for the public treasury. With the effectiveness of the 2022 Finance law, economic operators will have to comply with the required conditions to claim the exemption. If not, they will simply pay the tax, adding more revenues for the government.