Tax Deductions on Securities Income in Cameroon (2025 Finance Law)

If you earn income from securities like dividends or capital gains in Cameroon, the 2025 Finance Law introduces some key updates you need to know. Let’s break it down in simple terms.

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1. Tax Deducted at Source for Securities Income

When you earn capital gains or other income from securities, the person or company paying you is required to deduct the tax at source before you receive your money.

How It Works:

• Who Deducts the Tax? The company or individual paying your income from securities.
• What Happens Next? They must issue you a certificate of deduction as proof.
• Where Does the Tax Go? The deducted amount is sent to the tax office where the payer’s head office is located. This occurs 15 days after payment begins.

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2. Deadlines for Dividend Distribution

Under the law, dividends declared by a company’s General Assembly are automatically considered distributed after 9 months from the end of the financial year unless an extension is granted by the court.

Example:

• If a company’s financial year ends on 31st December 2024, dividends must be distributed by 30th September 2025. If not, they are deemed distributed, and taxes will apply accordingly.

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3. What About Foreign Companies?

For companies without a domicile or registered office in Cameroon, profits are also deemed distributed under the same rules. This ensures that income generated in Cameroon is taxed appropriately, even if the company operates internationally.

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Your Responsibilities as an Investor

To ensure compliance and avoid surprises:

1. Ask for Your Deduction Certificate: This document confirms that the correct tax has been deducted.
2. Track Distribution Deadlines: Be aware of the 9-month rule for dividends.
3. Stay Informed: Check how your securities income is categorized under the General Tax Code.

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How We Can Help

Keeping track of your investments and tax obligations can be tricky, but we’re here to help:

• Use tools like Kola Business Manager to manage your earnings and deductions. Learn more here.
• Get expert advice on managing your securities income with our Small Business Tax Management Services here.

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Stay Ahead with Accurate Records

Download the General Tax Code of Cameroon for reference here to stay updated on the rules.

Got questions about how these changes apply to your investments? Leave a comment below or contact us for personalized support! Let’s simplify your tax process.