Table of Contents
- Executive Summary: The G20 Tax Reform Wave in Cameroon
- G20 Tax Initiatives: Global Overview and Cameroon’s Commitments
- Key 2025 Tax Law Changes: What’s Official and What’s Proposed?
- Impact on Corporate Taxation: Rates, Incentives, and New Compliance Rules
- Personal Income Tax: Shifts, Thresholds, and Exemptions Explained
- International Taxation: BEPS, Digital Services, and Cross-Border Implications
- Compliance & Reporting: New Requirements for Businesses and Individuals
- Key Statistics: Revenue Projections, Collection Rates, and Compliance Data
- Government & Institutional Perspectives: Official Statements and Policy Objectives (minfi.gov.cm, impots.cm)
- 2025–2030 Outlook: Risks, Opportunities, and Strategic Recommendations for Stakeholders
- Sources & References
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Executive Summary: The G20 Tax Reform Wave in Cameroon
The G20-driven global tax reforms, particularly those arising from the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS), are having profound impacts on Cameroon’s tax landscape in 2025. Cameroon, as a committed member of the Inclusive Framework, has taken significant legislative and administrative steps to align with these evolving international tax standards. The reforms are centered on two key pillars: addressing the challenges of digitalization in the economy (Pillar One) and instituting a global minimum tax (Pillar Two)—both of which aim to curb profit shifting, increase transparency, and ensure a fairer allocation of taxing rights.
Between 2021 and 2024, Cameroon accelerated the overhaul of its tax code to comply with BEPS minimum standards, especially on transfer pricing documentation, mutual agreement procedures, and automatic exchange of information. The 2023 Finance Law introduced mandatory Country-by-Country Reporting (CbCR) for large multinational enterprises operating in Cameroon, with the first filings due by end of 2024. The Cameroonian tax authority (Direction Générale des Impôts, DGI) has issued detailed guidelines and compliance checklists to ensure that both resident and non-resident entities meet these new obligations Direction Générale des Impôts.
Compliance has grown more stringent, with increased audits and information requests targeting transfer pricing and cross-border payment arrangements. In 2024, Cameroon also ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS, which modifies several existing double tax treaties and strengthens anti-abuse provisions OECD. According to the DGI, the introduction of BEPS-aligned measures has led to a 17% increase in tax revenue from multinational enterprises in 2023, with further growth expected in 2025 as enforcement deepens.
Looking ahead, Cameroon plans to introduce legislation for the implementation of the 15% global minimum tax by 2026, following OECD guidance and peer country timelines. The government is actively consulting with stakeholders to ensure a smooth transition and minimize disruption to investment flows. The DGI is investing in digital transformation and capacity building to manage the increased data flows and complex compliance reviews required under the new regime.
In summary, the G20 tax reform wave is reshaping Cameroon’s fiscal environment, driving enhanced transparency, stricter compliance, and a broader tax base. The outlook for 2025 and beyond is one of continued integration with international tax standards, with the government prioritizing both revenue mobilization and a competitive, investment-friendly climate.
G20 Tax Initiatives: Global Overview and Cameroon’s Commitments
The G20’s tax reform agenda, notably the OECD/G20 Base Erosion and Profit Shifting (BEPS) project and the global minimum tax under Pillar Two, has shaped Cameroon’s recent tax policy and administrative reforms. Cameroon, as a member of the Inclusive Framework on BEPS, has formally committed to implementing international tax best practices, with an emphasis on transparency, anti-avoidance, and fair taxation of multinational enterprises (MNEs). The government’s active involvement in the Inclusive Framework since 2016 underscores its willingness to align with G20-driven international standards (Organisation for Economic Co-operation and Development).
Legally, Cameroon has taken steps to incorporate BEPS minimum standards and to strengthen its tax code. The 2023 and 2024 Finance Laws introduced measures targeting harmful tax practices and aggressive transfer pricing, notably by updating transfer pricing documentation requirements and tightening rules on interest deductibility for related-party transactions. The Cameroonian tax authority (DGI) has also expanded its capacity for automatic exchange of information, in line with the OECD’s Common Reporting Standard, improving its ability to detect cross-border tax evasion (Direction Générale des Impôts).
With respect to the global minimum tax (Pillar Two), Cameroon has declared its intent to adapt domestic legislation to the 15% minimum effective tax rate for large MNEs, though full implementation is anticipated over the next few years. The DGI is currently evaluating legislative changes and administrative resources necessary for effective compliance. In parallel, the government is actively participating in capacity-building programs offered by international organizations to prepare for the complex reporting and enforcement environment associated with Pillar Two (Ministry of Decentralization and Local Development).
- As of 2024, Cameroon has exchanged tax information with over 50 jurisdictions and launched more than 30 transfer pricing audits targeting multinational enterprises.
- Tax revenue attributed to improved transfer pricing rules increased by approximately 12% between 2022 and 2024 (Direction Générale des Impôts).
- In 2025, Cameroon is expected to finalize draft legislation incorporating Pillar Two provisions, with phased implementation projected for 2026–2027.
The outlook for G20 tax reforms in Cameroon remains dynamic. The government’s ongoing legislative adaptation, enhanced compliance efforts, and increased international cooperation signal a strong commitment to G20-aligned tax norms. Over the next few years, Cameroon is likely to see further improvement in revenue mobilization and tax certainty for both the authorities and multinational investors, provided effective implementation of these reforms continues.
Key 2025 Tax Law Changes: What’s Official and What’s Proposed?
Cameroon’s engagement with the G20-led global tax reforms, particularly the Inclusive Framework on Base Erosion and Profit Shifting (BEPS) and the Two-Pillar Solution for addressing tax challenges arising from digitalization, is accelerating in 2025. As a member of the Inclusive Framework under the Organisation for Economic Co-operation and Development (OECD), Cameroon has committed to implement minimum standards targeting harmful tax practices, tax treaty abuse, and improved transparency. The reforms aim to align Cameroon’s tax legislation with international standards, strengthening the country’s ability to tax multinational enterprises (MNEs) and curb illicit financial flows.
In 2025, Cameroon is undertaking legislative changes to comply with Pillar Two of the G20/OECD reforms, which introduces a global minimum tax rate of 15% for large MNEs with consolidated revenues above €750 million. The Ministry of Finance has announced draft amendments to Cameroon’s General Tax Code that would enable the implementation of a Qualified Domestic Minimum Top-up Tax (QDMTT), ensuring that affected MNEs pay at least the minimum tax rate in Cameroon, thus protecting the country’s tax base from profit shifting (Ministry of Finance, Cameroon). This legislative process is expected to be finalized by the end of 2025, with transitional compliance guidance to be issued in Q3 2025.
On the BEPS front, Cameroon has fully implemented Country-by-Country Reporting (CbCR) requirements for MNEs, enhancing tax transparency and information exchange. The General Directorate of Taxation is intensifying compliance monitoring, with penalties now enforced for late or inaccurate reporting (General Directorate of Taxation). In 2024, over 60% of targeted MNEs submitted CbCR filings on time—a figure expected to rise to 80% by 2026 as enforcement improves.
Key statistics indicate that the reforms could generate an estimated 1.2% increase in corporate tax revenues annually for Cameroon by 2027, according to projections released by the Ministry of Finance. However, administrative readiness remains a challenge: the government is investing in digital infrastructure and staff training to meet the complex demands of the new rules, prioritizing capacity building through technical assistance from the OECD and the African Tax Administration Forum (OECD).
Looking ahead, Cameroon’s tax authorities are expected to issue further regulations clarifying the application of the global minimum tax, treatment of tax incentives, and dispute resolution mechanisms. With the G20 reforms becoming central to Cameroon’s tax strategy, compliance obligations for MNEs will intensify, and the country is poised to strengthen its position in the global fight against tax avoidance while safeguarding domestic revenues.
Impact on Corporate Taxation: Rates, Incentives, and New Compliance Rules
The ongoing implementation of G20-driven international tax reforms has begun to significantly shape Cameroon’s corporate tax landscape in 2025, particularly in relation to the OECD/G20 Inclusive Framework initiatives. Cameroon, as a signatory to the Inclusive Framework, has been actively aligning its domestic tax policies to address base erosion and profit shifting (BEPS) and to prepare for global minimum tax standards.
Corporate Tax Rates and New Minimum Tax Rules
As of 2025, Cameroon maintains a standard corporate income tax (CIT) rate of 33%, with an additional 10% surtax on distributed profits, bringing the effective rate on distributed profits to approximately 36.3%. In light of Pillar Two of the G20/OECD reforms, which introduces a global minimum effective tax rate of 15% for large multinational enterprises (MNEs), Cameroon’s CIT rate already exceeds this floor. However, Cameroon is preparing to update its domestic legislation to ensure the effective implementation of the Global Anti-Base Erosion (GloBE) rules, which will target MNEs with consolidated revenues above €750 million, in alignment with the agreed G20 framework (Ministry of Economy, Planning and Regional Development).
Tax Incentives and Reforms
Cameroon has historically offered a range of tax incentives to attract investment, especially in priority sectors and special economic zones. However, under G20 reforms, these incentives are subject to review to prevent harmful tax competition and ensure compliance with the minimum tax standard. The government has commenced an audit of its tax incentive regime, with a focus on rationalizing or phasing out those incentives that could undermine the GloBE minimum tax threshold. New incentives are increasingly being structured as non-tax benefits or as qualified refundable tax credits, which remain permissible under the Pillar Two rules (General Directorate of Taxes).
Compliance and Reporting Requirements
In 2025, compliance obligations for large enterprises have expanded significantly. Multinational entities operating in Cameroon must now comply with enhanced country-by-country reporting, disclosing global allocation of income, taxes paid, and economic activity. The tax authority has upgraded its digital systems to process these disclosures and to facilitate the exchange of information with foreign tax authorities, in line with BEPS Action 13 requirements (General Directorate of Taxes). Failure to comply with new reporting standards now carries stricter penalties.
Key Statistics and Outlook
According to official data, corporate tax revenues contributed over 22% of total government tax receipts in 2024, with expectations of further growth as compliance improves and profit-shifting loopholes are closed. The outlook for 2025 and beyond anticipates further legislative updates, capacity building for tax administration, and continued engagement with the G20 Inclusive Framework to ensure Cameroon’s regime remains robust and competitive while adhering to global standards (Ministry of Economy, Planning and Regional Development).
Personal Income Tax: Shifts, Thresholds, and Exemptions Explained
The implementation of G20-driven tax reforms in Cameroon has prompted a significant evolution in the personal income tax (PIT) landscape, with 2025 marking a pivotal year for compliance and policy alignment. The reforms, catalyzed by global initiatives on tax transparency and anti-base erosion, have required Cameroon to adapt its domestic tax regime to meet international standards, particularly those championed by the G20 and the Organisation for Economic Co-operation and Development (OECD).
A major shift is the ongoing alignment with the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project, which has influenced amendments to the General Tax Code. The 2025 Finance Law, enacted by the Cameroonian government, reaffirms this trajectory by revising PIT brackets and increasing certain thresholds to improve equity and broaden the tax base. For example, the annual exemption threshold for individuals has been adjusted upwards to reflect inflation and cost-of-living changes, aiming to shield low-income earners from undue tax burdens (Ministry of Finance – Directorate General of Taxation).
The PIT rate structure remains progressive, ranging from 11% to 35%, but the upper thresholds for taxable income have been recalibrated. For 2025, monthly income up to XAF 62,000 remains exempt, while the upper bracket applies to incomes exceeding XAF 3,000,000 per month. These adjustments are designed to enhance fairness and minimize tax evasion, as mandated by G20 recommendations for developing economies (Ministry of Economy, Planning and Regional Development).
Exemptions and deductions continue to evolve. Social security contributions, family allowances, and certain pension payments are deductible from gross income, aligning with international standards and promoting voluntary compliance. The Cameroonian tax authority has intensified digitalization efforts, requiring electronic filing and real-time declaration of personal income, in line with global trends toward tax modernization (Ministry of Finance – Directorate General of Taxation).
Compliance rates have shown incremental improvement, with the Directorate General of Taxation reporting a 7% year-on-year increase in PIT declarations for 2024, a trend expected to continue into 2025. These reforms are projected to expand the formal tax base, reduce reliance on indirect taxation, and increase domestic revenue mobilization, supporting Cameroon’s fiscal sustainability and development objectives. Continued engagement with G20 standards is anticipated through 2027, as Cameroon consolidates reforms and further refines exemptions and thresholds to match both local realities and global best practices.
International Taxation: BEPS, Digital Services, and Cross-Border Implications
In recent years, Cameroon has intensified its engagement with global tax reforms, particularly those stemming from the G20 and Organisation for Economic Co-operation and Development (OECD) Base Erosion and Profit Shifting (BEPS) initiatives. As a member of the Inclusive Framework on BEPS since 2017, Cameroon is actively aligning its domestic tax policies with international standards to address tax avoidance, enhance transparency, and ensure fair taxation in the digital economy.
A central pillar of the G20-led reforms is the implementation of the two-pillar solution to address the tax challenges arising from the digitalization of the economy. In 2023, Cameroon joined over 135 countries in endorsing the OECD/G20 agreement, committing to reallocate taxing rights (Pillar One) and introduce a global minimum corporate tax rate of 15% (Pillar Two) for multinationals with revenues exceeding €750 million. The Ministry of Finance has subsequently initiated legislative reviews to transpose these rules into Cameroonian law, with implementation expected during 2025–2027, in line with global timelines (Office of the Prime Minister, Cameroon; OECD).
On the compliance front, Cameroon has reinforced transfer pricing regulations and documentation requirements for multinational enterprises (MNEs) operating within its borders. The tax authorities now mandate Country-by-Country Reporting (CbCR) for qualifying MNEs and have enhanced audit capacity to detect and challenge artificial profit shifting. In 2024, the General Directorate of Taxation reported an increase in transfer pricing audits, resulting in additional tax assessments and improved voluntary compliance among large taxpayers (General Directorate of Taxation, Cameroon).
Key statistics reflect the growing impact of these reforms. According to official data, international tax audits contributed to a 12% rise in revenue from multinational corporations between 2022 and 2024. Furthermore, preliminary government estimates suggest that the adoption of Pillar Two could generate an additional XAF 15–20 billion annually from 2026 onwards, contingent on global coordination and effective enforcement (Ministry of Finance, Cameroon).
Looking ahead, Cameroon faces both opportunities and challenges. While the alignment with G20 tax reforms is expected to broaden the tax base and foster equitable taxation, effective implementation will require sustained capacity building, digitalization of tax administration, and continued cooperation with international partners. The next few years will be pivotal as Cameroon integrates global minimum tax standards and adapts its domestic laws to the rapidly evolving international tax landscape.
Compliance & Reporting: New Requirements for Businesses and Individuals
The implementation of G20-led tax reforms in Cameroon is reshaping compliance and reporting obligations for both businesses and individuals, particularly as the country aligns its fiscal framework with international standards such as the OECD’s Base Erosion and Profit Shifting (BEPS) initiatives and the Global Minimum Tax (Pillar Two). As a signatory to the Inclusive Framework on BEPS, Cameroon is committed to improving tax transparency, curbing tax avoidance, and ensuring fair taxation of multinational enterprises (MNEs) operating within its jurisdiction.
A major compliance shift in 2025 is the introduction of Country-by-Country Reporting (CbCR) for qualifying multinational groups with consolidated revenues exceeding the threshold set by the OECD. These groups must submit annual CbC reports to the Direction Générale des Impôts (DGI), disclosing global allocation of income, taxes paid, and business activities in each jurisdiction. Non-compliance may result in significant administrative penalties and increased audit scrutiny.
Additionally, the application of the Global Minimum Tax (GMT) at a 15% effective rate is expected to become enforceable for large MNEs. This will require affected companies to undertake new calculations for effective tax rates and, where necessary, prepare “top-up tax” filings to ensure compliance. The DGI has issued draft guidance outlining transitional safe harbor rules and documentation requirements for the 2025–2027 period, anticipating further refinements as the reform matures.
For domestic businesses, Cameroon’s adherence to BEPS Action 13 has led to enhanced transfer pricing documentation requirements. Companies engaged in intra-group transactions exceeding specified materiality thresholds must maintain contemporaneous documentation demonstrating arm’s length pricing, to be submitted upon request or during tax audits. The Direction Générale des Impôts has intensified enforcement, with a reported increase in transfer pricing inquiries and adjustments since 2023.
On the individual side, tax residents with foreign income or assets face new disclosure obligations as Cameroon implements the Common Reporting Standard (CRS) for automatic exchange of financial account information. The Ministry of Finance has partnered with international authorities to enhance cross-border information exchange, heightening the risk of detection for undeclared offshore assets.
Looking forward, the compliance landscape is projected to become more digitalized and data-driven. The DGI is rolling out electronic filing platforms, automated risk assessment tools, and capacity-building initiatives to support both taxpayers and auditors. As G20 reforms take deeper root, businesses and individuals should anticipate more stringent enforcement, increased reporting complexity, and a continued emphasis on transparency and tax fairness through at least 2027.
Key Statistics: Revenue Projections, Collection Rates, and Compliance Data
The implementation of G20-led tax reforms, particularly the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) and the Two-Pillar Solution to address the tax challenges of the digital economy, has begun to shape Cameroon’s tax landscape in 2025. As a signatory to the BEPS Inclusive Framework, Cameroon has committed to adopting measures that enhance tax transparency, reduce profit shifting, and broaden the domestic tax base.
- Revenue Projections: The Cameroonian government projects that the full implementation of BEPS-related measures and the expected adoption of the global minimum tax (Pillar Two) will increase annual tax revenues by approximately 0.5-1% of GDP over the next three years. The Direction Générale des Impôts (DGI) anticipates that the minimum effective tax rate of 15% on large multinational enterprises (MNEs) will generate additional revenue, especially from the digital and extractive sectors. According to the 2025 Finance Law, overall state revenue is projected to reach XAF 7,500 billion, with non-oil tax revenue constituting 60% of this target.
- Collection Rates: The DGI reports that tax collection efficiency has steadily improved, with the non-oil tax collection rate reaching 95% of forecasted targets in 2024, up from 90% in 2022. Enhanced electronic filing systems and risk-based audit selection—aligned with BEPS Action 13 (Country-by-Country Reporting)—have contributed to this trend. The ongoing digitization of tax administration is expected to push collection rates above 97% by 2026 (Direction Générale des Impôts (DGI)).
- Compliance Data: Compliance among large taxpayers has increased following the introduction of new transfer pricing documentation requirements and the mandatory filing of Country-by-Country Reports for MNEs with consolidated revenues exceeding XAF 491 billion. The DGI notes a 15% year-on-year rise in voluntary disclosures and amendments by affected multinational groups in 2024. Penalties for non-compliance, as set out in the 2025 tax code, have also contributed to improved adherence (Ministry of Finance).
- Outlook: While Cameroon continues to align its tax system with G20 and OECD standards, authorities expect further gains in revenue mobilization and compliance. Risks remain, particularly regarding capacity constraints in auditing complex MNE structures and ensuring effective cross-border information exchange. Nonetheless, with ongoing support from international partners and the progressive adaptation of domestic law, Cameroon is poised to solidify its tax base and improve fiscal stability in the coming years (Organisation for Economic Co-operation and Development (OECD)).
Government & Institutional Perspectives: Official Statements and Policy Objectives (minfi.gov.cm, impots.cm)
The Government of Cameroon has actively engaged with G20-led international tax reforms, especially the OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) and the Two-Pillar Solution targeting the taxation of the digital economy. In recent years, official statements from the Ministry of Finance (MINFI) and the Directorate General of Taxes (DGI) have underscored the country’s commitment to align domestic tax policy with global standards, aiming to reinforce fiscal sovereignty, improve revenue mobilization, and strengthen compliance.
In 2025, Cameroon continues to participate in the BEPS Inclusive Framework, implementing key measures such as Country-by-Country Reporting (CbCR) and transfer pricing documentation. The Ministry of Finance has reiterated its policy objective to combat tax avoidance by multinational enterprises and improve the fairness of the tax system, as detailed in the annual Finance Law and sectoral policy papers. These reforms are intended to secure the tax base while providing legal certainty to investors and businesses.
The Direction Générale des Impôts has issued several circulars and technical notes on the practical implementation of G20 tax directives, including the adoption of minimum global tax (Pillar Two) rules and anti-abuse provisions. In its 2024-2026 strategic plan, the DGI set forth objectives to update its IT infrastructure, enhance taxpayer identification, and strengthen audit capacity to ensure compliance with new international requirements. Notably, electronic tax filing and digitalization initiatives have been accelerated to support transparency and ease of compliance, with over 70% of medium and large taxpayers now submitting filings electronically as of 2025.
- In 2024, Cameroon introduced legislative amendments to the General Tax Code, incorporating BEPS recommendations and preparing for the implementation of the global minimum tax. These changes are expected to broaden the tax base and increase corporate income tax receipts by an estimated 10-15% over the next three years (Ministry of Finance).
- The DGI reports that compliance rates for large multinational enterprises have risen from 62% in 2022 to 78% in 2025, attributed to enhanced enforcement and international information exchange agreements (Direction Générale des Impôts).
Looking ahead, Cameroon’s institutional outlook remains focused on further harmonization with G20 tax standards, including ongoing capacity-building for tax officials and legislative updates in response to evolving global tax norms. The government emphasizes continued collaboration with international partners to ensure the effectiveness and sustainability of these reforms, aiming for improved domestic resource mobilization and a more robust, fair tax system over the coming years.
2025–2030 Outlook: Risks, Opportunities, and Strategic Recommendations for Stakeholders
The period from 2025 to 2030 is poised to be pivotal for Cameroon as it continues to adapt its tax landscape in response to G20-led international tax reforms, particularly those driven by the Organisation for Economic Co-operation and Development’s (OECD) Inclusive Framework on Base Erosion and Profit Shifting (BEPS). The reforms, primarily focusing on the implementation of Pillar One (re-allocation of taxing rights) and Pillar Two (global minimum tax), present both challenges and opportunities for stakeholders in Cameroon’s public and private sectors.
- Risks: The introduction of a global minimum tax of 15%, as outlined under Pillar Two, may put pressure on Cameroon’s investment climate, particularly in sectors that have traditionally benefited from tax incentives to attract foreign direct investment. There is a tangible risk that compliance costs for multinational enterprises (MNEs) may rise, as companies adapt to new reporting obligations and align their structures with global standards. For local tax authorities, capacity constraints in implementing sophisticated international tax rules remain a concern, potentially leading to disputes or delayed revenue gains. The Ministry of Finance of Cameroon has acknowledged the need for significant investment in digital infrastructure and staff training to meet these challenges.
- Opportunities: Alignment with G20/OECD standards is expected to enhance Cameroon’s tax transparency and reduce profit shifting by MNEs, potentially broadening the domestic tax base. According to the OECD, African economies implementing BEPS actions have seen increased tax certainty and improved revenue collection. The reforms could also level the playing field for local businesses by ensuring that foreign firms contribute their fair share. In addition, enhanced cooperation with international tax authorities opens opportunities for technical assistance and access to global best practices.
- Key Statistics: Cameroon’s effective corporate tax rate currently stands at 33%, but several sectoral incentives have historically brought the effective rate for certain investors below the proposed minimum. The Direction Générale des Impôts reported a 9% annual rise in corporate tax revenues in 2023, partially attributed to preliminary anti-BEPS measures. However, the integration of G20 reforms is expected to more significantly impact revenue trends from 2025 onwards.
- Strategic Recommendations: Stakeholders should prioritize early assessment of tax structures and incentives to ensure compliance with global minimum tax requirements. Businesses are urged to invest in enhanced tax reporting and documentation systems. The government should focus on legislative alignment, capacity building, and fostering dialogue with the private sector. Continuous engagement with the OECD and regional bodies will be essential for technical guidance and dispute resolution.
As Cameroon navigates the evolving G20 tax landscape, proactive adaptation and strategic collaboration among stakeholders will be crucial to mitigate risks and seize emerging opportunities over the coming years.
