In recent years, Cameroon has revised its mining regulations and promoted the development of large-scale projects (such as the Minim-Martap bauxite mine). The government has introduced new arrangements regarding state equity participation, royalty models, and regulatory powers. The following are the tax and compliance points of greatest concern to investors. These are listed item by item, with the source number directly following each item for easy verification.
I. Legal and Regulatory Framework Main Laws: Cameroon's current mining law is based on the Mining Code (2016), and has been supplemented and amended by subsequent texts such as Law No. 2023/014 (19 Dec 2023). The 2023 law strengthens the state's functions and financing powers in the mining industry.
[1] II. Royalties/Royalty Statute and Practice Key Points: The Mining Code provides for various levy methods, including ad-valorem (value-based) royalty, annual fees based on area, and fixed taxes; the specific rates and levels are usually determined by the Finance Law Schedule or the mining agreement.
[2] Industry Interpretation: The new law and industry interpretation clarify the role of the value-based royalty, and the actual applicable rate will vary depending on the type of mineral and the agreement. For example, the agreement for a large-scale resource project may include an ad-valorem royalty, an extraction tax, and a distribution to local communities.
[3] Tip: For specific figures, please refer to the Appendix to the Finance Law or the mining convention of the target project.
3. Corporate Income Tax (CIT) and Local Surcharges Legal Base: Cameroon's corporate income tax is 30% [4]. Local Surcharges: There is also a municipal surcharge (approximately 10%), bringing the total tax burden to nearly 33% [4].
4. Value Added Tax (VAT) and Import and Export Preference Standards VAT: 19.25% (17.5% main tax rate + surcharge), exports 0% zero tax rate [5]. Mining Import Preferences: Capital equipment used for exploration and development can often apply for customs/import tax exemptions under treaties or investment licenses [2].
5. Withholding Tax (WHT) on Cross-Border Payments: Dividends, interest, royalties, and service fees are subject to withholding tax; the withholding tax on service and technology fees is generally around 15% (depending on the bilateral tax treaty) [6].
6. Mining Rights Types and Administrative Fees License Classification: Includes exploration licenses, mining licenses, and concessions/small-scale licenses. The validity period and number of renewals are determined by regulations and licenses.
[1]. Fee transparency: The specific amount shall be based on the annual financial law schedule and the fee schedule published by the Ministry of Mines〔2〕
.
Alluvial gold plant high recovery ratio flowchart
It include trommel screening for washing,and gold centrifugal concentrator,gold sluice box,shaking table for concentration gold and all heavy minerals.
7. State participation/free shareholding in SOEs: The state enjoys a minimum 10% free share and may purchase additional shares. [7] Practical example: In the Minim-Martap bauxite project agreement, the government received a 10% extraction share and shared the ad-valorem tax. [3]
8. Local content, environment and community obligations The law requires local procurement, local employment, environmental impact assessment (EIA) and reclamation, and includes a community benefit distribution mechanism in the agreement. [8]
9. Practical tips: The Finance Law & Ministry of Mines fee table shall prevail. [2] Large-scale project agreements take precedence (royalty, tax exemptions, tax holidays, etc. shall be subject to the contract). [3] Tax burden components: CIT 30% + municipal surcharge + royalty + VAT + WHT. [4] Pay attention to the implementation details: The new law supporting the 2023-2024 project is gradually being implemented. [1]
10. Conclusion: Building on the 2016 Mining Code, Cameroon adopted a new 2023 law and subsequent implementation arrangements, clarifying state participation (including a minimum 10% free shareholding), a value-based royalty framework, and a mechanism for determining rates in fiscal law. The actual tax burden consists of corporate income tax (approximately 30%), municipal surcharges, royalties, WHT, and VAT. Specific rates and exemptions are often detailed in an appendix to the fiscal law or in individual mining conventions. Investors should verify each item in official decrees and contracts.
6-S Shaking table/Shaker table
