Business Tips / Tax / Tax Obligations / Tech / Tech & Innovation

What is interest paid to investors?

Posted on:

Technology startups in Cameroon receive favourable tax incentives to stimulate investment and promote the growth of the digital economy. These include a reduced income tax rate of 5% on interest paid to investors and dividends paid to shareholders, and on movable capital revenue. This strategy is part of the government’s plan to foster entrepreneurship, attract investment, and support the development of the technology sector in the country.

Business Tips / Tax / Tax Obligations / Tech / Tech & Innovation

What is dividends paid to shareholders?

Posted on:

Cameroon offers a tax incentive to encourage investment in technology startups. Any dividends paid to shareholders and income tax on movable capital revenue or investor interest are taxed at a reduced rate of 5%. The government aims to stimulate the growth of the digital economy, entrepreneurship, and attract more investment to the tech sector. Startups and investors should, however, consult tax professionals to understand the eligibility criteria and other associated requirements.

Business Tips / Tax / Tax Obligations / Tech / Tech & Innovation

Incentives for Promoting the Digital Economy: Boosting Start-ups in the Digital Sphere

Posted on:

Cameroon’s General Tax Code offers tax advantages and incentives to ICT start-ups registered in approved management centers to foster innovation and support the digital economy. During the incubation phase, start-ups are tax exempt, giving them financial freedom to focus on growth. Technological innovation is encouraged through a 30% income tax credit on associated expenses. During the operational phase, further benefits continue, such as reduced tax rates, exemptions, and preferential rates on capital gains from sales. After five years, start-ups transition to the regular tax system, maintaining their established foundations.

Business Tips / Local Tax / Tax

Non-profit private education establishment

Posted on:

Non-profit private education establishments are institutions primarily focused on providing quality education rather than making profits. Privately owned by non-profit organizations, religious groups, or community entities, they encompass a variety of institutions from schools to universities. They rely on multiple funding sources including tuition, donations, and government grants. These institutions often offer a more personalized educational experience with greater flexibility in curriculum and teaching methods compared to public schools, despite charging tuition fees.