Private Investment Incentives

LAW NO. 2013/004 OF 18 APRIL 2013 TO LAY DOWN

PRIVATE INVESTMENT INCENTIVES

IN THE REPUBLIC OF CAMEROON

COMMON INCENTIVES

SECTION 4.- Any investor whose activities are in compliance with the laws and regulations in force and who meets one of the criteria below may enjoy the benefits provided for by this law:

-employ, during the operational phase and according to the size of the enterprise and sector, at least a Cameroonian by tranche ranging between 5 000 000 (five million) CFA francs and 25 000 000 (twenty-five million) CFA francs of planned investments, as applicable;

-annual exports of 10% to 25% of turnover, net of taxes;

- use local natural resources of 10% to 25% of the value of inputs;

-contribution to value added of 10% to 30% of turnover, net of taxes.

TAX AND CUSTOMS INCENTIVES

SECTION 5.- Incentives shall be granted to investors during the establishment and operation phases.

SECTION 6.- The investor shall enjoy the following benefits during establishment phase, which may not exceed 5 (five) years, with effect from the date of issuance of the approval:

- exemption from stamp duty on establishment or capital increase;

- exemption from stamp duty on the ease of immovable propertyused exclusively for professional purposes that form an integral part of the investment programme;

- exemption from transfer taxes on the acquisition of immovable property, land and buildings essential for the implementation of the investment programme;

- encouragement of regional development and decentralization;

- the fight against pollution and environmental protection;

- promotion and transfer of innovative technologies and research and development;
- promotion of exports ;

- promotion of employment and vocational training.

SECTION 15_- Any enterprise intending to carry out investments that contribute to the achievement of the abovementioned priority objectives may, as appropriate, benefit from the following common incentives:

- exemption from VAT on investment programme loans;

- exemption from land tax on built-on and non-built-on estates on the site dedicated to the processing plant and of all immovable property extensions by use thereof;

- direct goods clearance at the request of the investor;

- fixed registration fee;

- special temporary admission of industrial equipment and materials likely to be reexported.

SECTION 16.- Enterprises engaging in export operations shall, in the conduct of their business, benefit from:

- exemption from export duties on locally manufactured products;

- the inward-processing regime provided for by the Customs Code.

(3). With respect to foreign staff employed by the investor and resident in the Republic of Cameroon, they shall enjoy free conversion and free transfer to their country of origin of ail or part of amounts due them, subject to prior payment
of various taxes and social security contributions to which they are liable in compliance with the regulations in force.

SECTION 13.- The Government shall institute facilities necessary for:

- the establishment of a specific visa and a reception counter at ail airports throughout the national territory for investors, subject to their presentation of a formal invitation from the body in charge of investment promotion of small
and Medium sized Enterprise (SMEs);

- the issuance of the above-mentioned specific visa in all of Cameroon's diplomatic or consular representations;

- the issuance of residence and work permits to expatriate staff involved in any investment project and holding a contract of employment for a period exceeding two years;

- the issuance of environmental compliance certificates with respect to the investment projects concerned;

- the issuance of land titles and long-term leases.

PRlORlTY SECTORS

SECTION 14.- ln addition to the above-mentioned incentives, specific incentives may be provided to enterprises which carry out investments that contribute to the attainment of the following priority objectives:

- development of agriculture, fisheries, livestock, and plant, animal or fishery product packaging activities; .

- development of tourism and leisure facilities, social economy and handicraft;

- development of housing, including social housing;

- promotion of agro-industry, manufacturing industries, industry, construction materials, Iron and steel industry, construction, maritime and navigation activities;

- development of energy and water supply.