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KPMG Central Africa DOING BUSINESS IN CAMEROON EDITION 2012 KPMG Doing business in Cameroon 2012

KPMG Central Africa

DOING BUSINESS IN CAMEROON

EDITION 2012

KPMG Doing business in Cameroon 2012 Page 1
KPMG Doing business in Cameroon 2012
Page 1

DOING BUSINESS IN CAMEROON 2012

DOING BUSINESS IN CAMEROON 2012 KPMG Doing business in Cameroon 2012 Page 2
DOING BUSINESS IN CAMEROON 2012 KPMG Doing business in Cameroon 2012 Page 2

SOMMAIRE

Table des matières

CHAPTER 1 CAMEROON GENERAL PRESENTATION

5

1.

History and geography

5

Land borders

7

The relief

7

2. The climate

8

3. Population Demography

8

4. Principal cities - Languages Religions

9

 

5. Politic

10

6. Religions

11

CHAPTER 2 CAMEROON’S ECONOMY

12

1. Unemployment

15

2. Companies

15

3. Primary sector

16

Agriculture

16

Fishing

17

Oil

17

4. Secondary sector

18

Textiles

18

Aluminum

18

Chemical industry

18

Electrical industry

19

Industrial sharing

19

Third sector

20

CHAPITRE 3 LA FISCALITE AU CAMEROUN

22

3.

VAT

22

Excise duty

23

3.

Tax on personal income tax

23

Barème :

23

4. Corporation tax

24

Tax on income from movable capital

24

23 4. Corporation tax 24 Tax on income from movable capital 24 KPMG Doing business in
23 4. Corporation tax 24 Tax on income from movable capital 24 KPMG Doing business in

5. Special tax on income

24

6.

Additional council taxes

24

Patent

24

Registration fee

25

Special tax

25

 

Oil product

25

fee 25  Special tax 25   Oil product 25 KPMG Doing business in Cameroon 2012
fee 25  Special tax 25   Oil product 25 KPMG Doing business in Cameroon 2012

CHAPTER 1 CAMEROON GENERAL PRESENTATION

1. History and geography

The territory of present day Cameroon was first settled during the Neolithic. The longest continuous inhabitants are groups such as the Baka (Pygmies). From here, Bantu migrations into eastern, southern, and central Africa are believed to have originated about 2,000 years ago. The Sao culture arose around Lake Chad c. AD 500 and gave way to the Kanem and its successor state, the Bornu empire. Kingdoms, fondoms, and chiefdoms arose in the west.

Portuguese sailors reached the coast in 1472. They noted an abundance of the mud lobster Lepidophthalmus turneranus in the Wouri River and named it Rio dos Camarões, Portuguese for "River of Shrimp", and the phrase from which Cameroon is derived. Over the following few centuries, European interests regularised trade with the coastal peoples, and Christian missionaries pushed inland. In the early 19th century, Modibo Adama led Fulani soldiers on a jihad in the north against non-Muslim and partially Muslim peoples and established the Adamawa Emirate. Settled peoples who fled the Fulani caused a major redistribution of population. The northern part of Cameroon was an important part of the Muslim slave trade network.

The Bamum people have an indigenous writing system, known as Bamum script or Shu Mom. The script was developed by Sultan Ibrahim Njoya in 1896, and is taught in Cameroon by the Bamum Scripts and Archives Project. The German Empire claimed the territory as the colony of Kamerun in 1884 and began a steady push inland. They initiated projects to improve the colony's infrastructure, relying on a harsh system of forced labour. With the defeat of Germany in World War I, Kamerun became a League of Nations mandate territory and was split into French Cameroun and British Cameroons in 1919. France integrated the economy of Cameroun with that of France and improved the infrastructure with capital investments, skilled workers, and continued forced labou.

The British administered their territory from neighbouring Nigeria. Natives complained that this made them a neglected "colony of a colony". Nigerian migrant workers flocked to Southern Cameroons, ending forced labour but angering indigenous peoples. The League of Nations mandates were converted into United Nations Trusteeships in 1946, and the question of independence became a pressing issue in French Cameroun. France outlawed the most radical political party, the Union des Populations du Cameroun (UPC), on 13 July 1955. This prompted a long guerrilla war and the assassination of the party's leader, Ruben Um Nyobé, near Boumnyebel, the village where he was born. In British Cameroons, the question was whether to reunify with French Cameroun or join Nigeria.

Ahmadou Ahidjo arrives at Washington, D.C., in July 1982.

or join Nigeria. Ahmadou Ahidjo arrives at Washington, D.C., in July 1982. KPMG Doing business in
or join Nigeria. Ahmadou Ahidjo arrives at Washington, D.C., in July 1982. KPMG Doing business in

On 1 January 1960 at 2:30 am, French Cameroun gained independence from France under President Ahmadou Ahidjo. On 1 October 1961, the formerly British Southern Cameroons united with French Cameroun to form the Federal Republic of Cameroon. Ahidjo used the ongoing war with the UPC to concentrate power in the presidency, continuing with this even after the suppression of the UPC in 1971.

His political party, the Cameroon National Union (CNU), became the sole legal political party on 1 September 1966 and in 1972, the federal system of government was abolished in favour of a United Republic of Cameroon, headed from Yaoundé. Ahidjo pursued an economic policy of planned liberalism, prioritising cash crops and petroleum exploitation. The government used oil money to create a national cash reserve, pay farmers, and finance major development projects; however, many initiatives failed when Ahidjo appointed unqualified allies to direct them.

Ahidjo stepped down on 4 November 1982 and left power to his constitutional successor, Paul Biya. However, Ahidjo remained in control of the CNU and tried to run the country from behind the scenes until Biya and his allies pressured him into resigning. Biya began his administration by moving toward a more democratic government, but a failed coup d'état nudged him toward the leadership style of his predecessor.

An economic crisis took effect in the mid-1980s to late 1990s as a result of international economic conditions, drought, falling petroleum prices, and years of corruption, mismanagement, and cronyism. Cameroon turned to foreign aid, cut government spending, and privatised industries. With the reintroduction of multi-party politics in December 1990, the former British Cameroons pressure groups called for greater autonomy, with some (SCNC) advocating complete secession as the Republic of Ambazonia. In February 2008, Cameroon experienced its worst violence in 15 years when a transport union strike in Douala escalated into violent protests in 31 municipal areas.

At 475,442 square kilometres (183,569 sq mi), Cameroon is the world's 53rd-largest country. It is comparable in size to Papua New Guinea and somewhat larger than the U.S. state of California. The country is located in Central and West Africa on the Bight of Bonny, part of the Gulf of Guinea and the Atlantic Ocean. Cameroon lies between latitudes 1° and 13°N, and longitudes 8° and 17°E.

Tourist literature describes Cameroon as "Africa in miniature" because it exhibits all major climates and vegetation of the continent: coast, desert, mountains, rainforest, and savanna. The country's neighbours are Nigeria to the west; Chad to the northeast; the Central African Republic to the east; and Equatorial Guinea, Gabon, and the Republic of the Congo to the south.

Cameroon is divided into five major geographic zones distinguished by dominant physical, climatic, and vegetative features. The coastal plain extends 15 to 150 kilometres (9 to 93 mi) inland from the Gulf of Guinea and has an average elevation of 90 metres (295 ft). Exceedingly hot and humid with a short dry season, this belt is densely forested and includes some of the wettest places on earth, part of the Cross-Sanaga-Bioko coastal forests.

the wettest places on earth, part of the Cross-Sanaga-Bioko coastal forests. KPMG Doing business in Cameroon
the wettest places on earth, part of the Cross-Sanaga-Bioko coastal forests. KPMG Doing business in Cameroon

The South Cameroon Plateau rises from the coastal plain to an average elevation of 650 metres (2,133 ft).Equatorial rainforest dominates this region, although its alternation between wet and dry seasons makes it is less humid than the coast. This area is part of the Atlantic Equatorial coastal forests ecoregion.

An irregular chain of mountains, hills, and plateaus known as the Cameroon range extends from Mount Cameroon on the coastCameroon's highest point at 4,095 metres (13,435 ft) almost to Lake Chad at Cameroon's northern border at 13°05'N. This region has a mild climate, particularly on the Western High Plateau, although rainfall is high. Its soils are among Cameroon's most fertile, especially around volcanic Mount Cameroon. Volcanism here has created crater lakes. On 21 August 1986, one of these, Lake Nyos, belched carbon dioxide and killed between 1,700 and 2,000 people. This area has been delineated by the World Wildlife Fund as the Cameroonian Highlands forests ecoregion.

The southern plateau rises northward to the grassy, rugged Adamawa Plateau. This feature stretches from the western mountain area and forms a barrier between the country's north and south. Its average elevation is 1,100 metres (3,609 ft), and its average temperature ranges from 22 °C (71.6 °F) to 25 °C (77 °F) with high rainfall between April and October peaking in July and August. The northern lowland region extends from the edge of the Adamawa to Lake Chad with an average elevation of 300 to 350 metres (984 to 1,148 ft). Its characteristic vegetation is savanna scrub and grass. This is an arid region with sparse rainfall and high median temperatures.

Cameroon has four patterns of drainage. In the south, the principal rivers are the Ntem, Nyong, Sanaga, and Wouri. These flow southwestward or westward directly into the Gulf of Guinea. The Dja and Kadéï drain southeastward into the Congo River. In northern Cameroon, the Bénoué River runs north and west and empties into the Niger. The Logone flows northward into Lake Chad, which Cameroon shares with three neighbouring countries.

Land borders

1 690 km with Nigeria

1 094 km with Chad

797 km with Central African Republic

523 km with Congo Republic

298 km with Gabon

189 km with Equatorial Guinea

The relief

The lowlands: the Mamfe basin (Southwest), the basin of the Benue and the North China Plain • Trays: Southern Cameroon, with an average altitude of 650 m, and Adamawa - the water tower of Cameroon - whose average altitude is 1,000 m but rises to 2,650 m .

tower of Cameroon - whose average altitude is 1,000 m but rises to 2,650 m .
tower of Cameroon - whose average altitude is 1,000 m but rises to 2,650 m .

The Highlands West: one block of the base raised and covered with basaltic flows, arranged in an arc called the Cameroonian ridge. The peaks range from 1 500 to 4000 m. The most massive known are the Mandara Mountains (Far North), Alantika (North), and the active volcanoes of Oku (Northwest) and Mount Cameroon (Southwest) is at 4095 m altitude, the culmination of western Africa

2. The climate

The climate varies with terrain, from tropical along the coast to semiarid and hot in the north. Exceedingly hot and humid, the coastal belt includes some of the wettest places on earth. For example, Debundscha, at the base of Mt. Cameroon, has an average annual rainfall of 405 inches (10,287 mm).

3. Population Demography

2009 UN estimates place Cameroon's population at 19,522,000. The population is young: an estimated 40.9% are under 15, and 96.7% are under 65. The birth rate is estimated at 34.1 births per 1,000 people, the death rate at 12.2. The life expectancy is 53.69 years (52.89 years for males and 54.52 years for females).

Cameroon's population is almost evenly divided between urban and rural dwellers. Population density is highest in the large urban centres, the western highlands, and the northeastern plain. Douala, Yaoundé, and Garoua are the largest cities. In contrast, the Adamawa Plateau, southeastern Bénoué depression, and most of the South Cameroon Plateau are sparsely populated.

People from the overpopulated western highlands and the underdeveloped north are moving to the coastal plantation zone and urban centres for employment. Smaller movements are occurring as workers seek employment in lumber mills and plantations in the south and east. Although the national sex ratio is relatively even, these out-migrants are primarily males, which leads to unbalanced ratios in some regions.

Both monogamous and polygamous marriage are practiced, and the average Cameroonian family is large and extended. In the north, women tend to the home, and men herd cattle or work as farmers. In the south, women grow the family's food, and men provide meat and grow cash crops. Cameroonian society is male-dominated, and violence and discrimination against women is common.

Estimates identify anywhere from 230 to 282 different folks and linguistic groups in Cameroon. The Adamawa Plateau broadly bisects these into northern and southern divisions. The northern peoples are Sudanese groups, who live in the central highlands and the northern lowlands, and the Fulani, who are spread throughout northern Cameroon. A small number of Shuwa Arabs live near Lake Chad. Southern Cameroon is inhabited by speakers of Bantu and Semi-Bantu languages. Bantu-speaking groups inhabit the coastal and equatorial zones, while speakers of Semi-Bantu languages live in the Western grassfields. Some 5,000 Pygmies roam the southeastern and coastal rainforests or live in small, roadside settlements. Nigerians, make up the largest group of foreign nationals.

settlements. Nigerians, make up the largest group of foreign nationals. KPMG Doing business in Cameroon 2012
settlements. Nigerians, make up the largest group of foreign nationals. KPMG Doing business in Cameroon 2012

In 2007, Cameroon hosted a total population of refugees and asylum seekers of approximately 97,400. Of these, 49,300 were from the Central African Republic (many driven west by war), 41,600 from Chad, and 2,900 from Nigeria. Kidnappings of Cameroonian citizens by Central African bandits have increased since 2005.

The European languages introduced during colonialism have created a linguistic divide between the population who live in the Northwest and Southwest regions and the French- speaking remainder of the country. Both English and French are official languages, although French is by far the most understood language (80+ %). German, the language of the original colonisers, has long since been displaced by French and English. Cameroonian Pidgin English is the lingua franca in the formerly British-administered territories. A mixture of English, French, and Pidgin called Camfranglais has been gaining popularity in urban centres since the

mid-1970s.

4. Principal cities - Languages Religions

The constitution divides Cameroon into 10 semi-autonomous regions, each under the administration of an elected Regional Council. A presidential decree of 12 November 2008 officially instigated the change from provinces to regions. Each region is headed by a presidentially appointed governor. These leaders are charged with implementing the will of the president, reporting on the general mood and conditions of the regions, administering the civil service, keeping the peace, and overseeing the heads of the smaller administrative units. Governors have broad powers: they may order propaganda in their area and call in the army, gendarmes, and police. All local government officials are employees of the central government’s Ministry of Territorial Administration, from which local governments also get most of their budgets.

The regions are subdivided into 58 divisions (French départements). These are headed by presidentially appointed divisional officers (préfets), who perform the governors' duties on a smaller scale. The divisions are further sub-divided into sub-divisions (arrondissements), headed by assistant divisional officers (sous-prefets). The districts, administered by district heads (chefs de district), are the smallest administrative units. These are found in large sub- divisions and in regions that are difficult to reach.

The three northernmost regions are the Far North (Extrême Nord), North (Nord), and Adamawa (Adamaoua). Directly south of them are the Centre (Centre) and East (Est). The South Province (Sud) lies on the Gulf of Guinea and the southern border. Cameroon's western region is split into four smaller regions: The Littoral (Littoral) and Southwest (Sud- Ouest) regions are on the coast, and the Northwest (Nord-Ouest) and West (Ouest) regions are in the western grassfields. The Northwest and Southwest were once part of British Cameroons; the other regions were in French Cameroon.

Cameroons; the other regions were in French Cameroon. Table of data on Cameroon’s population distribution .
Cameroons; the other regions were in French Cameroon. Table of data on Cameroon’s population distribution .
Cameroons; the other regions were in French Cameroon. Table of data on Cameroon’s population distribution .

n

o

Region

County town

Population

Size (km²)

Population density

1

Adamaoua

 

884

289

63

701

13,9

2

Centre

Yaoundé

3

098 044

68

953

44,9

3

Est

Bertoua

 

771

755

109 002

7,1

4

Extrême-Nord

Maroua

3

111 792

34

263

90,8

5.

Politic

The President of Cameroon has broad, unilateral powers to create policy, administer government agencies, command the armed forces, negotiate and ratify treaties, and declare

a state of emergency. The president appoints government officials at all levels, from the

prime minister (considered the official head of government), to the provincial governors, divisional officers, and urban-council members in large cities. The president is selected by popular vote every seven years. In smaller municipalities, the public elects mayors and councilors.

Corruption is rife at all levels of government. In 1997, Cameroon established anti-corruption bureaus in 29 ministries, but only 25% became operational, and in 2011, Transparency International placed Cameroon at number 134 on a list of 183 countries ranked from least to most corrupt. On 18 January 2006, Biya initiated an anti-corruption drive under the direction

of the National Anti-Corruption Observatory.

Cameroon's legal system is largely based on French civil law with common law influences. Although nominally independent, the judiciary falls under the authority of the executive's Ministry of Justice. The president appoints judges at all levels. The judiciary is officially divided into tribunals, the court of appeal, and the supreme court. The National Assembly elects the members of a nine-member High Court of Justice that judges high-ranking members of government in the event they are charged with high treason or harming national security.

A statue of a chief in Bana, West Region, shows the prestige afforded such rulers. The

Cameroonian government recognizes the power of traditional authorities provided their rulings do not contradict national law.

Human rights organizations accuse police and military forces of mistreating and even torturing criminal suspects, ethnic minorities, homosexuals, and political activists. Prisons are overcrowded with little access to adequate food and medical facilities, and prisons run by traditional rulers in the north are charged with holding political opponents at the behest

in the north are charged with holding political opponents at the behest KPMG Doing business in
in the north are charged with holding political opponents at the behest KPMG Doing business in

of the government. However, since the first decade of the 21st century, an increasing number of police and gendarmes have been prosecuted for improper conduct.

The National Assembly makes legislation. The body consists of 180 members who are elected for five-year terms and meet three times per year. Laws are passed on a majority vote. Rarely has the assembly changed or blocked legislation proposed by the president. The 1996 constitution establishes a second house of parliament, the 100-seat Senate, but this body has never been put into practice. The government recognises the authority of traditional chiefs, fons, and lamibe to govern at the local level and to resolve disputes as long as such rulings do not conflict with national law.

President Paul Biya's Cameroon People's Democratic Movement (CPDM) was the only legal political party until December 1990. Numerous regional political groups have since formed. The primary opposition is the Social Democratic Front (SDF), based largely in the Anglophone region of the country and headed by John Fru Ndi Biya and his party has maintained control of the presidency and the National Assembly in national elections, but rivals contend that these have been unfair. Human rights organizations allege that the government suppresses the freedoms of opposition groups by preventing demonstrations, disrupting meetings, and arresting opposition leaders and journalists. Freedom House ranks Cameroon as "not free" in terms of political rights and civil liberties. The last parliamentary elections were held on 22 July 2007.

Cameroon is a member of both the Commonwealth of Nations and La Francophonie. Its foreign policy closely follows that of its main ally, France (the former colonial ruler). The country relies heavily on France for its defense, although military spending is high in comparison to other sectors of government. Biya has clashed with the government of Nigeria over possession of the Bakassi peninsula and with Gabon's president, El Hadj Omar Bongo, over personal rivalries.

6.

Religions

Cameroon has a high level of religious freedom and diversity. The predominant faith is Christianity, practiced by about two-thirds of the population, while Islam is a significant minority faith, adhered to by about one-fifth. In addition, traditional faiths are practiced by many. Muslims are most concentrated in the north, while Christians are concentrated primarily in the southern and western regions, but practitioners of both faiths can be found throughout the country. Large cities have significant populations of both groups. There is significant internal migration. There are currently no active religious political parties.

People from the North-West and South-West provinces are largely Protestant, and the French-speaking regions of the southern and western regions are largely Catholic. Southern ethnic groups predominantly follow Christian or traditional African animist beliefs, or a syncretic combination of the two. People widely believe in witchcraft, and the government outlaws such practices. Suspected witches are often subject to mob violence.

such practices. Suspected witches are often subject to mob violence. KPMG Doing business in Cameroon 2012
such practices. Suspected witches are often subject to mob violence. KPMG Doing business in Cameroon 2012

In the northern regions, the locally dominant Fulani ethnic group is mostly Muslim, but the overall population is fairly evenly divided among Muslims, Christians, and followers of indigenous religious beliefs (called Kirdi ("pagan") by the Fulani). The Bamum ethnic group of the West Region is largely Muslim. Native traditional religions are practiced in rural areas throughout the country but rarely are practiced publicly in cities, in part because many indigenous religious groups are intrinsically local in character.

CHAPTER 2 CAMEROON’S ECONOMY

 

Cameroon

Economic indicators

Currency

Fiscal year

calendar

International

organizations

 

Statistics

GDP

GDP PPP

42,750 milliards $ (2008)

Rank

86e (2008)

GDP’s growth

5,2 % (2007)

GDP per capita

2 400 $ (2006)

 

agriculture : 44,8 % (2007)

GDP per sector

industrie : 17 % (2007)

services : 38,2 % (2007)

2 % (2005)

Pop. below the

poverty line

48 % (2000)

human poverty

index

0,523 (2008)

poverty line 48 % (2000) human poverty index 0,523 (2008) KPMG Doing business in Cameroon 2012
poverty line 48 % (2000) human poverty index 0,523 (2008) KPMG Doing business in Cameroon 2012
Labor population 6,860 millions (2005) Labor force per sector agriculture : 70 % (2005) industry
Labor population
6,860 millions (2005)
Labor force per
sector
agriculture : 70 % (2005)
industry : 13 % (2005)
services : 17 % (2005)
Unemployment
30 % (2001)
rate
Main industries
Petrol, aluminum, wood, food industry, textile, ships yards
Foreign trade
Exportations
3 milliards $ (2005)
Spain 16,7 %, Italie 13,2 %, France 9,2 %, United King dom
8,8 %, South Corea 7,8 %, Netherlands6,5 %, Belgium 4,5 %, É.-
Main customers
U. 4,1 % (2005)
Importations
2,5 milliards $ (2005)
Main suppliers
France 24,5 %, Nigeria 11,3 %, Belgium 6,6 %, China 5,8 %, É.-U.
5,2 %, Thaïlande 4,6 %, Germany 4,4 % (2005)
Finances
Public debt
24,40 % du PIB (2006)

Cameroon's per-capita GDP (Purchasing power parity) was estimated as US$2,300 in 2008, one of the ten highest in sub-Saharan Africa. Major export markets include France, Italy, South Korea, Spain, and the United Kingdom.Cameroon has enjoyed a decade of strong economic performance, with GDP growing at an average of 4 percent per year. During the 20042008 period, public debt was reduced from over 60 percent of GDP to 10 percent and official reserves quadrupled to over USD 3 billion. Cameroon is part of the Bank of Central African States (of which it is the dominant economy), the Customs and Economic Union of Central Africa (UDEAC) and the Organization for the Harmonization of Business Law in Africa (OHADA).

Its currency is the CFA franc. Red tape, high taxes, and endemic corruption have impeded growth of the private sector. Unemployment was estimated at 30% in 2001, and about a third of the population was living below the international poverty threshold of US$1.25 a day in 2009. Since the late 1980s, Cameroon has been following programmes advocated by the World Bank and International Monetary Fund (IMF) to reduce poverty, privatise industries, and increase economic growth. Tourism is a growing sector, particularly in the coastal area, around Mount Cameroon, and in the north.

particularly in the coastal area, around Mount Cameroon, and in the north. KPMG Doing business in
particularly in the coastal area, around Mount Cameroon, and in the north. KPMG Doing business in

Cameroon's natural resources are very well suited to agriculture and arboriculture. An estimated 70% of the population farms, and agriculture comprised an estimated 19.8% of GDP in 2009. Most agriculture is done at the subsistence scale by local farmers using simple tools. They sell their surplus produce, and some maintain separate fields for commercial use. Urban centres are particularly reliant on peasant agriculture for their foodstuffs. Soils and climate on the coast encourage extensive commercial cultivation of bananas, cocoa, oil palms, rubber, and tea. Inland on the South Cameroon Plateau, cash crops include coffee, sugar, and tobacco. Coffee is a major cash crop in the western highlands, and in the north, natural conditions favour crops such as cotton, groundnuts, and rice. Reliance on agricultural exports makes Cameroon vulnerable to shifts in their prices.

Livestock are raised throughout the country. Fishing employs some 5,000 people and provides 20,000 tons of seafood each year. Bushmeat, long a staple food for rural Cameroonians, is today a delicacy in the country's urban centres. The commercial bushmeat trade has now surpassed deforestation as the main threat to wildlife in Cameroon.

The southern rainforest has vast timber reserves, estimated to cover 37% of Cameroon's total land area. However, large areas of the forest are difficult to reach. Logging, largely handled by foreign-owned firms, provides the government US$60 million a year, and laws mandate the safe and sustainable exploitation of timber. Nevertheless, in practice, the industry is one of the least regulated in Cameroon.

Factory-based industry accounted for an estimated 29.7% of GDP in 2009. More than 75% of Cameroon's industrial strength is located in Douala and Bonabéri. Cameroon possesses substantial mineral resources, but these are not extensively mined. Petroleum exploitation has fallen since 1985, but this is still a substantial sector such that dips in prices have a strong effect on the economy. Rapids and waterfalls obstruct the southern rivers, but these sites offer opportunities for hydroelectric development and supply most of Cameroon's energy. The Sanaga River powers the largest hydroelectric station, located at Edéa. The rest of Cameroon's energy comes from oil-powered thermal engines. Much of the country remains without reliable power supplies.

Transport in Cameroon is often difficult. Except for the several relatively good toll roads which connect major cities (all of them one-lane) roads are poorly maintained and subject to inclement weather, since only 10% of the roadways are tarred. Roadblocks often serve little other purpose than to allow police and gendarmes to collect bribes from travelers. Road banditry has long hampered transport along the eastern and western borders, and since 2005, the problem has intensified in the east as the Central African Republic has further destabilized.

Intercity bus services run by multiple private companies connect all major cities. Although intercity buses rarely depart on schedule but rather wait until all the tickets are sold. They are the most popular mean of transportation followed by the rail service Camrail. Rail service runs from Kumba in the west to Bélabo in the east and north to Ngaoundéré.

International airports are located in Douala and Yaoundé. The airport at Bamenda is now closed. The Wouri estuary provides a harbour for Douala, the country's principal seaport. In the north, the Bénoué River is seasonally navigable from Garoua across into Nigeria.

the Bénoué River is seasonally navigable from Garoua across into Nigeria. KPMG Doing business in Cameroon
the Bénoué River is seasonally navigable from Garoua across into Nigeria. KPMG Doing business in Cameroon

Although press freedoms have improved since the first decade of the 21st century, the press is corrupt and beholden to special interests and political groups. Newspapers routinely self- censor to avoid government reprisals. The major radio and television stations are state-run and other communications, such as land-based telephones and telegraphs, are largely under government control. However, cell phone networks and Internet providers have increased dramatically since the first decade of the 21st century and are largely unregulated.

1.

Unemployment

Principals economic indicators

 
 

2001

2002

2003

2004

2005

Gowth

4,7 %

4,1 %

4,5 %

4,4 %

4,8 %

GDP per hab. (USD)

627,6

686,6

840,4

943,8

984,0

There are no truly reliable statistics on unemployment in Cameroon. Thus, the National Institute of Statistics estimates the unemployment rate to 4.4% in 2005 (against 7.2% for 2001), while the World Wactbook published by the CIA reported a unemployment rate around 30%. Another study of the INS from 2001, the unemployment rate in 2001 was 8.2% (17.6% urban) against 9.5% (20.3% urban) in 1995.

The difference between the various estimates can be explained by self-employment of unemployed in small business (rescuers phenomena), which may be considered an activity for survival during periods of unemployment.

In his study, the INS notes that nearly 70% of workers earn less than minimum wage, or 28,300 CFA (about 45 euro). The fight against unemployment in Cameroon is entrusted to the Ministry of Labour and the National Employment Fund (FNE).

2.

Companies

Cameroon has several companies operating in extremely varied fields. The country is however penalized by the heaviness of his administration. Thus, an estimated 444 days the time needed to start a business because of the paperwork and administrative procedures. Cameroon has several companies operating in extremely varied fields. The country is however penalized by the heaviness of his administration. Thus, an estimated 444 days the time needed to start a business because of the paperwork and administrative procedures.

Companies

Activity sector

ATLANTECH CAMEROUN

SSII

AVENTICA

SSII

opérateur d'électricité

SSII AVENTICA SSII AES Sonel opérateur d'électricité KPMG Doing business in Cameroon 2012 Page 15
SSII AVENTICA SSII AES Sonel opérateur d'électricité KPMG Doing business in Cameroon 2012 Page 15

Banque

fabricant d'Aluminium

Brasserie, boissons

BICEC

Banque

Compagnie Aérienne

opérateur postal et bancaire

ligne ferroviaires

opérateur public de téléphonie

Ciment

Bourse

transfert d'argent

Camer Hosting Services

MTN Cameroon

opérateur téléphonique

Nestlé Cameroun

agro-alimentaire

fabrication

d'emballages

plastiques

et

de

gaines industrielles

 

Jeux

Transport maritime

 

SNI

Société Nationale d'investissements

 

transformation agricole

 
 

Pétrole

Coton

 

3.

Primary sector

 

Cameroon Production (Source BEAC)

 

Production

1997

1998

1999

2000

2001

2002

2003

2004

Petrol

5,7

6

6

5,8

5,5

5,2

4,9

4,5

(en millions de tonnes)

 

Cocoa

126,7

138,3

133,9

124,4

130,4

170

175,3

187,8

(en millions de tonnes)

 

Coffee

88,7

84

95

82,4

67,3

54

63

65

(en millions de tonnes)

 

- (en millions de tonnes)

graine

208,2

194

195,9

214,1

238,5

246,1

233,8

273

Wood

3269

3130

2700

2950

2070

1931,3

1738,2

1998,9

Natural Ruber

 

56,8

55,4

55,8

56,9

55,2

50

54,6

56,7

Banana

98,9

212,7

221

235,9

248,7

230,8

313,7

294,9

Agriculture

Agriculture can be rightly regarded as the mainstay of the economy in Cameroon. With a 70% occupancy of the active population, it contributes about 42% of the workforce. Unemployment help, a lot of people are falling back in the fields of the earth to find something to live or survive. It comes

in the fields of the earth to find something to live or survive. It comes KPMG
in the fields of the earth to find something to live or survive. It comes KPMG

in several items, including food and cash crops, cotton, palm, the cocoa-coffee, rubber industry, the sector of sugar, bananas and even the downstream sector.

Fishing

Approximately 64,000 tons of marine products are caught each year off the coast of Cameroon. Marine artisanal fishery, carried on canoes along the 400 km of coastline, including mangroves, is responsible for this figure. 10 000 tonnes of shrimp are included in this number, about the same as the continental scale fishing on artificial lakes and rivers. Artisanal fishing provides about 65,000 direct jobs and 135,000 indirect in the fish trade, processing and construction materials.

In 2008, Douala is the only industrial fishing port (10 000 t / year), this activity is suffering from over- exploitation of resources and a sometimes unfair competition of Asian, particularly Chinese. Prices have doubled in five years, while the quantities sold decreased by almost half. Without adequate production (fish farming is still in its infancy), Cameroon imports annually more than 135 000 tonnes of frozen fish, and a deficit of more than 150,000 tons. However, several projects have been launched to address the long-term deficit. Including a major project started in 2005 near Kribi, with Japanese funding. There are plans to build a complex comprising a fish market, a market, a refrigerated building, a warehouse and a training center. As soon begin shrimp farming in Cameroon with the help of French experts.

Oil

Cameroon is facing twenty years to lower its oil reserves. No significant new reserves have yet been made which might reverse the trend term, except in the Bakassi area in the English-speaking region of south-west, a peninsula that once belonged to Nigeria. The oil industry has been the growth engine of the country during the years 1965-1985.

Excluding oil, Cameroon has large reserves of bauxite, iron, cobalt, nickel and manganese, are currently underused. Bauxite is currently treated in the complex Alucam (Aluminium of Cameroon) in Edea is imported mainly from Guinea-Conakry.

In recent years the government has signed or negotiated agreements with countries like China or companies such as Geovic, Sundance Resources or Hydromine for the operation of several raw materials in the eastern provinces and Adamawa, and Northern. Nkamouna region has deposits of cobalt, nickel and manganese. They want the American mining company Geovic Mining Corp

Logging

The timber industry is a pillar of the national economy: it contributes 5% of GDP, 10% in non-oil income of the state, and generates about 30% of non-oil export resources the country. According to Jeune Afrique Cameroon has the second forest in Africa, more than 18 million hectares of exploitable closed forest, representing 40% of the land area. About 80 different species are marketed; ayous

40% of the land area. About 80 different species are marketed; ayous KPMG Doing business in
40% of the land area. About 80 different species are marketed; ayous KPMG Doing business in

(light white wood) and sapele (heavy red wood) account for one third of exports, but also operates mahogany, moabi, azobé.

The State seeks to maximize local value added of the sector, which led in 1999 to prohibit the export of logs, it is also necessary that there be creditworthy investors, reliable and professional to take over . In collaboration with donors and NGOs, Cameroon has made big plans for sound management, supported in this by the new legislation of 1994 which led to an inventory of resources, broken down into forest management units (FMU ) and an allocation of concessions of timber rights by auction rather than by direct agreement. Greater severity in law enforcement is responsible for the temporary decline in production from 2005, but it should have positive effects in the medium and long term.

4. Secondary sector

Manufactured

 

1994-1995

1995-1996

1996-1997

1997-1998

Aluminum (exportations)

63 402

52 104

27 483

N.D.

Palm oil

105 000

120 000

111 000

114 000

Oil

5 380 212

3 219 604

N. D.

N. D.

Suger

45 000

53 000

53 000

58 000

Textiles

There are only eight companies in this sub-sector employs a total workforce of 3,538 people. The textile and leather industries experiencing difficulties. The few existing units are permanently threatened by flooding the market with used clothing and smuggled goods from Nigeria and Asia. The Cotton industry of Cameroon (CICAM) is the leading textile company. Created in 1963, it produced an average of 7,500 tons of cotton yarn, 32 million meters of greige fabrics and 35 million printed fabrics. The SOLICAM, a subsidiary of CICAM produces mostly terry cloth for export. Apart from traditional use, almost all of the leather is exported.

Aluminum

Overall, industrial activity was positive during the 1995-1996 fiscal year. Production at the smelter (which is packaged in aluminum ingots and plates ready for sale) totaled 86,131 tons against 92,798 tons in the budget, and 86,995 tons last year, with sales rising to 80 275 tonnes, an increase of 2% compared to 1994-1995 (78,693 t). In 2006, the U.S. company Hydromine was entrusted with the exclusive operation of a deposit of 1.123 million tonnes at Minim-Martap, in the province of Adamawa. This important discovery will greatly increase the supply of aluminum in the country, while this operation will be implied for the most part reserved for export. From 2008, the company Alucam, Alcan subsidiary, will hold a progressive increase its annual production of aluminum.

Chemical industry

a progressive increase its annual production of aluminum. Chemical industry KPMG Doing business in Cameroon 2012
a progressive increase its annual production of aluminum. Chemical industry KPMG Doing business in Cameroon 2012

They are still in early stages of development. Many products such as fertilizers are imported while some are simply packaged on site: varnishes, glues, paints, detergents. The sector comprises 25 companies employing 1,748 people. It may be noted, among other things, soap and detergent factories, perfume, paint, and a fledgling pharmaceutical industry. The soap industry is most dynamic. Outside the CCC dominates the niche, more than ten soap have settled in recent years in Yaounde, Douala and Bafoussam.

Metal and mechanical industries

The former are poorly developed if one excludes some manufacturing plants or assembly of bicycles and ancillary truck. However, there are companies that produce nails, bolts and the small household equipment and sheet metal. The basic metal industry is represented by the company that transforms Alucam imported alumina to aluminum Guinea. Aluminum production is 85,000 tons. Part is used to make plates and utensils. The metallurgical sector had 16 companies employing 1,427 people.

Electrical industry

Apart from the production of batteries and accumulators, this sub-sector is mainly represented by

companies from mounting certain appliances, rewind, etc

radios and televisions. The sector comprised four companies and 531 employees.

There are also small units assembling

Industrial sharing

Despite the creation of export processing zones and free points on the entire territory, industrial production is still concentrated in Douala, economic capital, which includes more than 70% of companies. In recent years, the wood processing units were installed in Yaounde while Bafoussam hosted mainly detergents factories.

Glycerine

It represents a promising sector. This is a new product for the country with an increase in two years over 14%.

Cement

The overall supply of cement (local production and import) increased during the first eleven months of the order of 1.20%. Which is not particularly significant. Local sales are slightly down (1.1%) and export sales in relatively large increase (12%).

However in recent months the scarcity of cement came Cimencam led to a crisis of cement in the entire country, thereby significantly blocking the construction sector, and making fodder for speculators because of the scarcity of the product. The company has been forced into a massive importation of cement from Afghanistan to overcome the relative lack of cement on the national territory, the latter being also reserved for companies given its relatively high price (more expensive

also reserved for companies given its relatively high price (more expensive KPMG Doing business in Cameroon
also reserved for companies given its relatively high price (more expensive KPMG Doing business in Cameroon

than 25%). However the company was able to master this crisis through a surdéploiement, until the next school year, bags of cement in the major cities of Yaounde and Douala.

It is finally noted that another plant is being built in the town of Limbe, which will increase domestic production of more than 30%.

Shipyards and industrial Cameroon, CNIC

Generally marked by an increase in turnover of around 20%. The number of vessels repaired during is up compared to last year from 147 to 170 vessels.

Petroleum products

The downstream oil market is a market that fluctuates with the smuggling of Nigeria. He has seen the increase, either in volume 913,606 m³. Of fluctuations have resulted in increased pump prices by about 12% on average, which had a negative impact on consumption. The country's oil resources, which are steadily declining over the past ten years could be revised upwards through the operation of the Bakassi Peninsula, potentially rich in oil. However, the adjustment of oil prices has contributed to an additional gain in recent years.

BTP

The work of the Chad-Cameroon pipeline have given a boost to the construction industry in the early 2000s. This project, which is today one of the largest ever made in sub-Saharan Africa has mobilized more than 300 businesses and employed over 1000 people directly and over 15,000 indirectly. The German group RAZEL remains the leader in the construction industry in Cameroon. But other foreign companies, including China, have been assigned important projects. The CMEC, hear Chinese Machinery Company for Export and Import for example had the exclusivity of the construction of sports facilities promoted by the head of state, while it is being finalized in the Sports Palace in Yaounde.

Third sector

In Cameroon, in cities such as Douala, Yaounde, Bafoussam, Garoua, the service sector has grown significantly in recent years and was reinforced by the advent of information technology and communication. The service person has diversified and improved in major cities. Bank, internet cafes, currency exchange, express mail

in major cities. Bank, internet cafes, currency exchange, express mail KPMG Doing business in Cameroon 2012
in major cities. Bank, internet cafes, currency exchange, express mail KPMG Doing business in Cameroon 2012

Financial sector

There are ten commercial banks and financial institutions 6 chip. Banks are generally in excess liquidity. The bank restructuring has helped to improve a situation made very difficult by 10 years of crisis, when banks, nationalized at the time, were forced to extend credit of convenience. Today the savings rate is between 14% and 15% of GDP despite the virtual absence of the financial system, the Douala Stock Exange just been introduced. The largest banks in the country are SGBC, a subsidiary of French group Societe Generale ($ 791 million in 2006), the Bicec ($ 752 million in 2006) and Afriland First Bank ($ 572 million in 2006). This sector has experienced strong growth and a high concentration, since the first three banks listed above hold over 75% market share nationally. In May 2008, the Moroccan Bank of Foreign Trade, the BMCE has expressed the wish to establish themselves in Cameroon to increase domestic supply. It specializes in loans, public works and real estate.

Transport The level of road transport in general and in Cameroon do not yet match the needs of people. Although many efforts have been undertaken over several decades to improve and rehabilitate some roads, this area still suffers from a lack of regular funding and the many delays often accused by some sites.

Maritime infrastructure

Cameroon is endowed with four independent ports: the Port of Douala, the deepwater port of Kribi, Limbe seaport and river port of Garoua. The port of Douala alone represents 95% of seaborne cargo Cameroon. This is the largest port in the CEMAC zone. Located at the mouth of the river Wouri, is the only entry point for Cameroon maritime and landlocked countries in the area. Its traffic of 6 million tonnes for 95% of foreign trade of the country. Its capacity of 7.5 million tonnes (26 docks, terminals 7 and 15 specialty stores) is expandable to 10 million. An equipment program co-financed by the World Bank, EU and France has reduced processing times of goods by 25 days to 7 days for imports and 2 to 7 days for export. However, Douala is not a deep water harbor: ships (1,300 per year with a gross tonnage of 15,000 t) accessing it via a channel of 24 km and 6.5 m deep that we must constantly maintain. Hence the need for the construction of the deepwater port of Kribi, whose commissioning is in two tranches in 2014. The financing of industrial terminal is mainly supported by China State Cameroonian providing funding for the pier minéralière. The river port is a port of Garoua exploitable seasonal from August to September, but its poor maintenance has allowed the sand to fill the Benue, which is its main stream of supply. The draft is almost nonexistent.

Tourism

is its main stream of supply. The draft is almost nonexistent. Tourism KPMG Doing business in
is its main stream of supply. The draft is almost nonexistent. Tourism KPMG Doing business in

Tourism is great boom in Cameroon (4.4% of GDP). In 2011, UNWTO has identified 500,000 visitors spending a night or more in Cameroon, General Delegation for National Security of Cameroon for its reported 1,000,000 foreign visitors in Cameroon in 2011. The causes of underdevelopment are many:

lack of political will, reliability and cost of the national airline, administrative and police harassment, lack of infrastructure. The main attractions are the country's northern Cameroon (Waza National Park) and Limbe region, in south-west and the south.

International agreements

Cameroon is a member of the Bank of Central African States (BEAC), the Economic and Monetary Community of Central Africa (CEMAC), Commonwealth (since November 1995).

CHAPITRE 3 LA FISCALITE AU CAMEROUN

3.

VAT

There is a tax on value added tax levied by the state and municipalities. It works similar to VAT in other countries. The general rate of VAT in Cameroon is 19.25% since 2005. It was 18.7% before. There is a zero rate which applies to exports and to all transactions with companies located in export processing zones and free points.

Individuals and non-taxable transactions

Legal persons under public law (state, local and regional centralized, public administration); legal persons of private law (limited liability companies, partnerships, associations, groupings of economic interest groups collective interest; capital companies public companies of mixed economy) that carry

a turnover greater than or equal to 15 000 000 FCFA.

5-work estate sales items and used equipment made by professional 6-disposals of fixed assets not included in the list of goods exempted under Article 241 of the Customs Code 7-real estate transactions of any kind carried out by real estate professionals-8 sales of petroleum products imported or produced in Cameroon 9-gambling and entertainment-all other economic transactions for pecuniary. The particular case of export operations exports are zero-rated. The Tax Code lists various products and types of transactions exempted from VAT by their nature or because of the law.

A well-deliveries of the 2-3 services imports-4-

2. Tax regimes

A-Basic Plan

Individuals whose turnover excluding taxes is greater than or equal to 15 million CFA francs and less than 50 million CFA francs are subject to the basic scheme. This is a regime of tax collector as they are not entitled to deduct. They must keep their accounts according to the minimum cash system

deduct. They must keep their accounts according to the minimum cash system KPMG Doing business in
deduct. They must keep their accounts according to the minimum cash system KPMG Doing business in

(GTS) of the OHADA accounting plan. They can opt for the simplified tax system and this option also carries an option for other tax schedules. And the taxpayer is also required to comply with the accounting requirements of the new tax system.

B - Plan simplifies tax (RSI)

Individuals whose turnover excluding taxes is greater than or equal to 50 million CFA and less than 100 million CFA francs are subject to simplified taxation for short RSI. They have the right to deduct input VAT on the acquisition of goods and services. They must keep their accounts according to the streamlined system (SA) of the OHADA accounting plan. They can opt for the scheme of reality under the same conditions.

C-Plan of the real

Legal persons, members of the professions and loggers are automatically subject to this regime. Individuals whose turnover excluding taxes is greater than or equal to 100 million CFA francs are also subject to this tax regime. They must keep their accounts following the normal system (SN) of the OHADA accounting plan. It is important to note that the option is valid for three fiscal years even though sales during these exercises would be below the legal minimum.

Excise duty

The excise tax is a unit with the same mechanism as VAT and affecting certain categories of property listed as drinks (alcoholic or non), tobacco, jewelery and, since 2006, vehicles. Before 2006, its rate was only 25%. Since 2006, 25% normal rate and reduced rate to 12.5% (vehicle).

3. Tax on personal income tax

Taxes on personal income is deducted at source for employees. There is no mechanism of family income. The IRPP is wound by applying the following scale, after deduction of 500,000 CFA francs on the sum of net income categorical, as defined in Article 69 of the Tax Code. The taxable income of employees is equal to the gross amount received, plus benefits in kind made to the actual amounts, less an allowance of 30%, and less contributions to the CNPS.

Barème :

Tranche de revenu

Taux

De 0 à 2.000.000

10

%

De 2.000.001 à 3.000.000

15

%

De 0 à 2.000.000 10 % De 2.000.001 à 3.000.000 15 % KPMG Doing business in
De 0 à 2.000.000 10 % De 2.000.001 à 3.000.000 15 % KPMG Doing business in

De 3.000.001 à 5.000.000

25

%

Plus de 5.000.000

35

%

4. Corporation tax

The tax base of corporation tax is equal to revenue less all expenses incurred by the company for this turnover. However, certain expenses are excluded from deductibility by law and must be reinstated to the accounting profit. Taxable income is taxed at only 35% (38.5% including ACC).

Tax on income from movable capital

This tax for income from shares and similar occult as well as income. He then substitute the PIT or CIT and is deducted at source. The rate is 16.5% (15% for primary and 1.5% for ACC) in 2005.

5. Special tax on income

This tax is levied on billed services abroad. Under tax treaties, it may be deductible in the foreign country.

6. Additional council taxes

The additional council taxes are an additional 10% tax that hits the following taxes: VAT, CIT, PIT, and TPRCM. The provisions of Chapter 2 of the Finance Act 2002/014 of 20 December 2002 have established the IRCM instead of TPRCM. Under the provisions of section 581 of the Tax Code of Cameroon, the additional council taxes are also levied the tax on Land Ownership at 10%. This tax is collected by the municipalities.

Patent

There are a blatant tax called perceived by the municipalities, payable by any person or entity engaged in business in Cameroon. Under the provisions of Article 162bis of the General Tax Code of Cameroon, new businesses are exempt from license under the two (2) years of their operation. Beyond a turnover of 2 billion, a 5% rebate is applied to each whole slice of 500 million francs without reduction may not exceed 30% of sales over 2 billion .

(Sales - Abatement) x Scale x 2.03 + tax Local Development

Scale:

billion . (Sales - Abatement) x Scale x 2.03 + tax Local Development Scale: KPMG Doing
billion . (Sales - Abatement) x Scale x 2.03 + tax Local Development Scale: KPMG Doing

Chiffre d'affaires

Classe

Taux

égal ou sup. à 2 milliards de francs

1re

0,0875 %

égal ou sup. à 1 milliard et inf. à 2 milliards

2e

0,100 %

égal ou sup. à 500 millions et inf. à 1 milliard

3e

0,108 %

égal ou sup. à 300 millions et inf. à 500 millions

4e

0,116 %

égal ou sup. à 100 millions et inf. à 300 millions

5e

0,150 %

égal ou sup. à 15 millions et inf. à 100 millions

6e

0,160 %

inférieur à 15 millions

7e

0,400 %

Registration fee

The registration fee is a charge levied on contracts (excluding employment contracts) and transactions private proxy. This right can be fixed, proportional, progressive or regressive. List of most common cases and rates:

Lease Commercial Real Estate Urban: 10% of the total lease payments

Lease Real Estate Urban Residential: 5% of the total lease payments

Sale of motor vehicle: 5% of sales

Public procurement of more than 5 000 000 F: 2% of the market

Transactions on real estate: 15% of transaction amount

Transactions on undeveloped land property: 5% of transaction amount

Transactions in securities: 2% of transaction amount

Contracts of marriage: 1%

Contracts of marriage without inputs: fixed fee of 20,000 F

Capital increase: from Law No. 2009/018 of 15 December 2010 on the Finance Act of the

Republic of Cameroon in respect of fiscal 2010, section 546 paragraph b of the General Tax Code (CGI) has that the registration of acts of incorporation, continuation of society and capital increase is FREE

Changes in death: progressive right (2% to 10%)

Testament: fixed fee of 12,000 F

Special tax

Oil product

There is a special tax on petroleum products (STPP):

super-fuel: 120 francs / liter Diesel: 65 CHF / liter According to Article 232 of the Tax Code, the fact of that duty consists of the delivery of taxable goods by the National Company of Refining, introduction of products in the territory or the first use of products when s 'These are the deliveries himself. The result of this tax is distributed as follows:

for the road fund, 20 and 45 FCFA, respectively to advance from the super-liter petrol and diesel and to the Treasury 80 and 20 CFA.

from the super-liter petrol and diesel and to the Treasury 80 and 20 CFA. KPMG Doing
from the super-liter petrol and diesel and to the Treasury 80 and 20 CFA. KPMG Doing

Forestry

Forestry fees: this fee has been sitting on the surface of the timber by a rate per hectare decided at a tender which includes a technical proposal (weighted at 30% of total) and a financial (weighted at 70% of total). The floor rate (minimum) is 1000 FCFA per hectare (1.52 ). The average winning bids was about 2800 FCFA per hectare (€ 4.27) in early 2006. The highest fees are around 8000 FCFA per hectare (€ 12.2).

• Tax 'slaughter tax of 2.5% of the mercurial felled timber in the forest.

Tax on admission to the factory: Tax 2.25% of the value of the log mercurial entering the factory.

• Right to Customs for export: Tax 17.5% of the mercurial on exports of logs.

Surcharge for export: surcharge on logs ranging from 500 to 4000 CFA francs per cubic meter

depending on the species. The main species exported, ayous, supports a surcharge of 4,000 FCFA per

m³. Note: the mercurial value are voted twice yearly by the National Assembly on a proposal Customs.

Taxation of structural projects

Under the provisions of sections 114 and 115 of the Tax Code of Cameroon, are eligible for tax structuring projects, large companies that meet the conditions established by the Decree of 28 July 2008 2008/2304/PM specifying how application of special tax structuring projects of the tax Code of Cameroon. The tax benefits associated with this plan are:

- Exemption from business tax for the two (02) years of operation;

- Recording in fixed fee of 50,000 FCFA acts of incorporation, continuance and increase of capital and real estate transfer directly related to the implementation of the project;

- Exemption from VAT on local purchases of building materials and imports for the implementation of

the project;

- Application of accelerated depreciation rate of 1.25 rate for the specific assets acquired during the installation phase;

- Extension of the duration of the tax loss carryforward of four (04) to five (05) years.

the duration of the tax loss carryforward of four (04) to five (05) years . KPMG
the duration of the tax loss carryforward of four (04) to five (05) years . KPMG