Section 6 of the General Tax Code of Cameroon

In this blog post, we explain Section 6 of the General Tax Code of Cameroon, which details how to determine taxable profits for businesses. Knowing these rules is crucial for any business operating in Cameroon. Let’s break down what Section 6 entails and how it affects your business.

What Are Taxable Profits?

According to Section 6 of the General Tax Code of Cameroon, taxable profits are the net profits of a business. These profits come from all transactions during the assessment period, which is the same as the calendar year—from January 1 to December 31. This includes all types of transactions, like selling goods, providing services, or transferring assets.


If you run a shop, all the money you make from selling items from January 1 to December 31 will count towards your taxable profits.

Calculating Net Profit

Net profit is the key figure used to determine taxable profits. It’s calculated by looking at the value of your net assets at the beginning and end of the year. You then adjust this value by subtracting any new assets brought in and adding any withdrawals made by members during the year.

Net assets are the difference between what your business owns (assets) and what it owes (liabilities). Liabilities include debts to others, depreciation of assets, and other necessary provisions.


At the start of the year, your business has assets worth XAF100,000 and liabilities worth XAF60,000, leaving XAF40,000 in net assets. By the end of the year, assets increase to XAF150,000 and liabilities to XAF90,000, resulting in XAF60,000 in net assets. The net profit would then be calculated based on this change, adjusted for any new assets or withdrawals.

Valuing Stocks and Work in Progress

Section 6 also explains how to value stocks and work in progress. Stocks should be valued at their cost price. If the market price is lower than the cost price, you need to account for this drop in value. Work in progress should also be valued at its cost.


If you bought stock for XAF10,000, but by the end of the year, its market value drops to XAF8,000, you must record this lower value to reflect the true worth of your inventory.

Implications for Businesses

Understanding these rules helps businesses in Cameroon comply with tax laws and report finances accurately. Correctly calculating net profit and valuing assets ensures transparency and fiscal responsibility.

Section 6 provides clear guidelines for determining taxable profits. By focusing on net profit and proper asset valuation, businesses can stay compliant and maintain accurate financial records. Stay informed and seek advice from tax professionals to navigate these rules effectively.

For entrepreneurs looking to register a business in Cameroon, OpenHub Consulting offers comprehensive company creation services. Visit OpenHub Consulting to learn more.

Read Also: Know Your Tax: Understanding Taxable Profits in Cameroon

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