Business Tips / Local Tax / Tax / Tax Obligations

Open-end investment companies

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Open-end investment firms, known as SICAVs (Société d’Investissement à Capital Variable), are financial structures pooling funds from investors for diversified portfolio investments like stocks, bonds, or other instruments. Offering unlimited shares, SICAVs offer liquidity and risk diversification, while being subject to regulatory oversight for investor protection. These companies are tax-exempt in Cameroon.

Business Tips / Local Tax / Tax / Tax Obligations

Mutual investment funds

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Mutual investment funds pool capital from numerous investors and offer access to professionally managed, diversified investment portfolios. They have varying objectives like capital appreciation and income generation, detailed in the prospectus. Managed by professionals, mutual funds issue, redeem units as per investor interest and follow robust risk management practices. They’re subjected to regulatory oversight for investor protection and transparency. Interestingly, they are exempted from paying company tax in Cameroon.

Business Tips / Local Tax / Tax / Tax Obligations

Cooperative societies

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Cooperative societies are voluntary associations that promote the economic and social well-being of their members by pooling resources and undertaking collective activities. Key features include democratic control, active member benefit, limited return on capital, and emphasis on education and training. These cooperatives operate across various sectors and can increase bargaining power, improve resource access, and promote sustainable practices. Cooperatives’ structure and benefits are subject to local regulations, such as tax exemptions in Cameroon. Assistance is readily available for those interested in forming or participating in cooperatives.

Business Tips / Local Tax / Tax Obligations

Tax Exemptions for Newly Created Companies and Sole Proprietor Businesses

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Newly created companies and sole proprietor businesses are exempt from a business license tax for their first year of operation, per the General Tax Code. However, they are not exempt from income tax. There are specific provisions allowing flexibility in reporting initial financial statements and calendar considerations for tax payments. Companies must understand these obligations and consult with tax professionals for clarity.