Reinvestment scheme at a glance

In accordance with the provisions of articles 105-107 of the General Tax Code, natural or corporate bodies willing to reinvest in Cameroon may be granted 50% reduction in the basic tax for Corporate Taxes or in personal income tax.

In effect, tax reductions are granted at the rate of 50% of the reinvestment approved, and provided they do not exceed half of the profits declared for the fiscal year under consideration. In the event of insufficiency in any financial year, the company may carry forward shall be authorized for no more than three subsequent financial years representing three previous financial years. The following conditions must first be met:

1. Basic Conditions:

In order to be eligible for this scheme, reinvestments must be carried out under any of the following forms:

  • The construction and extension of buildings constructed with permanent material for industrial, agricultural, forestry, tourism or mining, technical bureau purposes as well as free buildings meant for salaried employees

  • Purchase of industrial, agricultural, mining or tourist equipment sealed in a permanent fund

  • Purchase of specialised heavy mechanical equipment for agricultural, forestry and mining use

  • Purchase, replacement or installation of production, processing, packaging and preservation equipments in the food sector

  • Purchase of heavy machines for industrial, forestry, maritime or air transportation

  • Expenditures for soil preparation, sowing in industrial plantations, excluding expenditures for maintenance

  • Any social reinvestment (construction of boreholes, wells, schools, village health centres, roads, bridges, etc.)

  • The amount reinvested should be at least or equal to 25 (twenty five) million francs.

2. Other conditions:

In order to qualify for the tax reduction the mentioned above, the taxpayer shall forward to the General Director of Taxation, at the time of filing the return of trading results for the financial year for which the investments were effected, a file in two copies containing the documents below:

  • An application (original stamped at the current rate)

  • A summary, descriptive list (with estimates) of the programme realised

  • Supporting documents for declared expenditures (invoices, memoirs, plans,, purchase order, supply vouchers)

  • A copy of the tax return form and a copy of a table of fixed assets for the financial year

Only companies which keep regular, complete and genuine accounts in accordance with the OHADA Accounting system may benefit from tax reductions on account of reinvestment.