INCENTIVES TO COMPANY

REPORT ON LAW N° 2013-004 OF APRIL 18, 2013 SETTING THE INCENTIVES FOR PRIVATE INVESTMENT IN THE REPUBLIC OF CAMEROON, SUPPLEMENTED BY LAW N° 2017-015 of July 12, 2017

UNDERSTANDING THE SPECIFIC INCENTIVES

In addition to the administrative, tax, customs and financial incentives that have been set out in the previous chronicles, specific incentives can be granted to companies that make investments to achieve the following priority objectives:

• Development of agriculture, fishing, breeding, packaging and storage activities for products of plant, animal or fish origin;

• Development of the tourism and leisure offer, of the social economy and of crafts;

• Housing and social housing development;

• Promotion of agro-industry, manufacturing industries, heavy industry, building materials, iron and steel, metal construction, maritime and navigation activities;

• The development of energy and water supply;

• Encouragement of regional development and decentralization;

• Pollution control and environmental protection;

• Promotion and transfer of innovative technologies and research and development;

• Export promotion;

• Promotion of employment and vocational training.

Thus, any company that plans to make investments to achieve the above-mentioned priority objectives can claim, as the case may be, the benefit of the following common incentives:

• Exemption from VAT on related credits or investment program;

• Exemption from property tax on buildings, built or not, forming part of the site dedicated to the processing unit and all real estate extensions by destination;

• Direct withdrawal at the request of the investor;

• Fixed duty registration;

• Special temporary admission of industrial equipment and materials likely to be re-exported.

Companies that carry out export operations benefit from their activities:

• Exemption from exit duty on locally manufactured products;

• The active improvement regime provided for by the Customs Code.

Any existing company in operation, engaged in an investment program aimed at extending its production capacities, renewing its assets or increasing its performance, may benefit, for a period not exceeding five (5) years, common incentives referred to in Article 7 of the law, when its investment program ensures an increase in the production of goods or services or Cameroonian personnel up to 20% or less.

Thus, during the operating phase, which cannot exceed ten (10) years, in consideration of the size of the investments and the economic benefits expected from them, the investor may benefit, as the case may be, from exemptions or reductions. The payment of the following taxes, levies, duties and other charges:

• minimum charge;

• Corporation tax ;

• income taxes ;

• registration fees relating to loans, borrowings,
current account advances, guarantees, increases, reductions, repayments and liquidations of the share capital or any transfer of activity, rights of ownership or enjoyment of real estate, leases or shares;

• tax on income from movable capital (IRCM) on the occasion of the
distribution of income in the form of dividends or in other forms to be specified in the agreement;

• special income tax (TSR) in the project development and construction phase, on payments made to petroleum product companies.

In this context, the investor can also benefit from the following advantages:

• the carrying forward of deficits until the fifth financial year following that of their occurrence;

• exemption from the payment of duties, taxes and customs fees on imports of capital goods intended to be allocated and used for its investment program.

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