The Parliament deliberated and adopted, the President of the Republic hereby enacts the law set out below:
PART ONE
I: PROVISIONS RELATING TO RESOURCES
CHAPTER ONE
GENERAL PROVISIONS
SECTION ONE: Taxes, contributions, royalties, proceeds and public revenue of the Republic of Cameroon shall continue to be collected in accordance with the instruments in force, subject to the provisions of this law.
CHAPTER TWO
PROVISIONS RELATING TO THE GENERAL TAX CODE
SECTION TWO: The provisions of Sections 3, 5 (a), 7, 8 (a), 17, 18 (a), 21, 22, 24, 29, 36, 42, 44, 56, 69, 70, 87, 91, 92 (b), 104 (b), 105, 106, 107, 127, 137 (a), 140 (a), 142, 143, 149, 225, 225 (a), 239, 239 (a), 239 (b), 239 (c), 239 (d), 239 (e), 239 (f), 240, 342, 343, 543, 571, 607 (new), 608 (new), 608 (a) (new), M1, M4, M7 (a), M8 (a), M13, M18, M35, M36, M42, M68, M76, M77, M99, M119, M121, C12 and C24 of the General Tax Code are hereby amended and/or supplemented as follows:
BOOK ONE
TAXES AND DUTIES
I: DIRECT TAXES
CHAPTER I
COMPANY TAX
Section 3: …………………………………......…......................………………………. ;
(5) Microfinance institutions irrespective of their legal form and their nature.
Section 5 (a): (1) The following shall be deemed to be operating in Cameroon:
-undertakings headquartered in Cameroon or with effective management office in Cameroon
-undertakings that have a permanent establishment in Cameroon;
-undertakings that have a dependent representative in Cameroon.
(2) The profits of the undertakings that do not fulfil the conditions referred to in paragraph (1) above shall be taxable in Cameroon where they carry out activities that form a full business cycle in Cameroon.
Section 7: ...………………....................……......................………......…………………..
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A-OVERHEADS
1.Sundry remunerations and provision of services:
(d)Subject to international agreements, the following shall be regarded as expenses on condition that they are not exaggerated:
•…………………………………..…………………………....................... ;
•………………………………………………………................................. ;
•the amounts paid for the use of valid patents, brands, designs and models within the overall limit of 2.5% taxable profit before the deduction of expenses claimed.
The rest shall remain unchanged.
Section 8 (a): (1) The expenses referred to in Section 7 above equal to or greater than CFAF 500 000 (five hundred thousand) shall not be deductible when paid in cash.
The rest shall remain unchanged.
Section 17: (1) The rate of the tax applicable shall be 30%.
(2) However, for companies under the dispensational tax regime, a special incentive tax regime or any other tax advantage, the rate applicable shall remain that in force as of 1 January 2014.
(3) In calculating the tax, any fraction of the taxable profit less than CFAF 1 000 shall be disregarded.
(4) Provided that if the company has received income from securities, the tax thus calculated shall be diminished by setting off tax deducted at source on such income. This system shall not apply to companies referred to in Section 13 above.
Section 18 (a) (new): (1) Public limited companies must also keep a register of registered shares that they issue. The register shall be kept and updated by each company or by each authorized person.
(2) The register numbered and initialled by the court registry where the company is located shall contain the following information:
-transactions relating to the transfer, conversion, pledging and sequestration of securities;
-date of transaction;
-surnames, given names and residence of the former and new holder of securities, in the case of transfer;
-surnames, given names and residence of holder of securities, in the case of conversion of securities to bearer of registered securities.
(3) In the case of transfer, the name of the former holder of the securities may be replaced by a serial number that helps to locate this name in registers. All information contained in the registers must be signed by the legal representative of the company or his delegated person.
(4) In the case of the issuance of bearer securities, commercial companies are bound by the obligations of the OHADA Uniform Act relating to the law on commercial companies and economic interest groups.
Section 21: (1) The company tax shall be paid on the initiative of the taxpayer not later than the 15th of the following month, in accordance with the terms below:
-in the case of the direct tax system taxpayers, one instalment representing 2% of the turnover realized during each month shall be paid not later than the 15th of the following month. Such instalment shall be increased by 10% as levy for additional council tax.
-...................................................................................................................................;
(3) The advance payment shall be:
-10% for any taxpayer that is not on the register of a tax office.
The rest shall remain unchanged.
Section 22: (1)..............................................................................................................
(2) The amount of tax owed by each company or council shall not be less than the tax resulting from the application of the 2% rate to the reference base as defined in Section 23 below.
This minimum tax shall be increased by 10 % as levy for additional council tax.
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