Cameroon – New Taxation Model for Non-Resident Digital Service Providers

The trend of taxing digital service providers operating in the African region without a physical presence is widely supported by policy enablers. From 2026, Cameroon will also align its taxation agenda with other African countries that have previously adopted similar measures. 

The Finance Law for the 2026 Financial Year, adopted by the Parliament on December 17, 2025, introduces a new concept for taxation of foreign online digital service providers operating in the country without a physical presence. The taxation relies on the Significant Economic Presence (SEP) model. 

Timeline 

The taxation of non-resident digital service providers under the SEP model begins on January 1, 2026. 

Digital Services Tax 

Tax Framework 

The Cameroon Government’s broader vision was to implement a taxation model that would be efficient and difficult to avoid, as the trigger for taxation is the concept of Significant Economic Presence. 

What condition must be met for the SEP model to be applied to digital platforms? 

Non-resident digital service providers shall be in scope if, in a financial year, they either: 

1. Have a gross income higher than CFA 50 million(approx USD 90,000) from local customers; or 
2. Has more than 1,000 users, customers, or account holders in Camerron. 

The monetary threshold represents the aggregate value of all payments made directly by local customers or through other intermediaries (marketplaces or other intermediaries). 

Scope of Digital Services 

The scope of digital services includes at least the following: 

• The provision of on-demand digital content
• Online advertising and customer or user monetization services 
• Intermediation Services for electronic marketplaces
• Cloud Computing 
• Data hosting and SaaS services 

Digital Tax Calculation Logic

The adopted Finance Law 2026 introduces a specific set of rules and conditions for determining the tax payable by overseas digital services providers that have established Significant Economic Presence in the country. 

Corporate income tax at a minimum rate of 3% on the gross income shall be levied. However, depending on the generated turnover or the number of transactions, the Directorate General of Taxes (DGI) may require the digital platform operator to apply a standard tax regime to calculate the tax payable. 

Tax Reporting 

The Directorate General of Taxes shall develop a dedicated digital portal through which responsible digital service providers shall submit returns and make monthly payments. Accountable taxable entities should file monthly returns and pay the tax by the 15th of the following month. 

Further guidance on full tax compliance shall be provided soon by the DGI and the Ministry of Finance through guidelines and a decree.

Digital Taxation Cameroon

Cameroon is among African countries that continuously introduce new tax frameworks for digital service providers. The introduction of Corporate Income Tax based on SEP is only(for now) the last of the series of reforms that have been implemented. 

The taxation of non-resident digital companies began with the adoption of the Finance 2020 Law, which came into effect in 2021. Customs duties on imported goods facilitated through e-commerce marketplaces have been collected since 2023. In 2022, a tax on electronic money transfers was introduced. 

From 2024, a non-commercial profits tax rate of 5% has applied to income earned by natural persons through sales facilitated by digital platforms. 

How to stay compliant 

If you are a digital service provider who provides its digital services or digital products to customers in Cameroon, you should carefully review your gross income sales from the previous calendar year, and the number of transactions that have been carried out resulting in payments that have some sort of connection with Cameroon customers or bank accounts. 

If you have any questions, we are here to provide you with customized tax assistance to overcome upcoming CIT challenges in Cameroon. 

We can assist you with the following: 

1. CIT or VAT Registration in Cameroon and full compliance with new requirements 
2. Submission of tax returns and remittance when needed
3. Ongoing compliance

Takeaway

Frequently Asked Questions