Circulaire n° 006/MINFI/DGI/LRI/L du 21 février 2020 précisant les modalités d'application des dispositions fiscales de la Loi n° 2019/023 du 24 décembre 2019 portant Loi de Finances 2020 de la République du Cameroun

CIRCULAR No. 006 /MINFI/DGI/LRI/L OF 21 FEBRUAR 2020 SPECIFYING THE MODALITIES OF APPLICATION OF THE TAX PROVISIONS OF LAW No. 2019/023 OF 24 DECEMBER 2019 ON THE 2020 FINANCE LAW OF THE REPUBLIC OF CAMEROON

THE DIRECTOR GENERAL OF TAXATION

TO

• The Head of the Inspectorate of Tax Services ;
• The Directors and equivalent ;
• The Heads of the Regional Tax Centres ;
• The Deputy Directors and equivalent ;
• The Heads of Departments and equivalent.

Article 4 of Law No. 2019/023 of 24 December 2019 on the 2020 Finance Law of the Republic of Cameroon has amended and completed certain provisions of the General Tax Code (GTC).

New tax measures have thus been added to the legal framework that has hitherto been in force. They relate to the following areas

• Corporate Income Tax (CIT) and Personal Income Tax (PIT);
• Value Added Tax (VAT) and Excise Duties;
• taxes specific to the forestry sector;
• registration and stamp duties;
• tax procedures.

This circular specifies the modalities of application of the new provisions and gives the guidelines and prescriptions useful for their implementation.

1 PROVISIONS RELATING TO CORPORATE INCOME TAX (CIT) AND PERSONAL INCOME TAX (PIT)

1.1 Section 7 A-1 : Readjustment of the ceilings of deductibility for the calculation of corporate income tax (CIT) on head office and technical assistance expenses.

1. The 2020 Finance Law revises the rules for the deductibility of general expenses relating to the head office, studies, technical assistance, accounting and financial assistance, for the determination of the corporate tax.

a. General information

1. Head office expenses shall mean the general administrative and management expenses incurred by the parent company or by one of the subsidiaries of a group of companies for the needs of all subsidiaries and/or permanent establishments. They include in particular accounting, tax, IT, administrative, legal, financial and human resources services.

1. For the purposes of this circular, technical assistance shall mean any service rendered to a Cameroonian enterprise or a permanent establishment situated in Cameroon with a view to strengthening its production capacity or increasing its output.

1. For the purposes of this circular, financial assistance shall mean any assistance provided to a Cameroonian enterprise or a permanent establishment situated in Cameroon in the field of financial management, financing or intermediation in the search for financing.

1. For the application of the ceiling on the deductibility of technical, financial and accounting assistance costs, only costs paid to an enterprise participating directly or indirectly in the management or capital of the Cameroonian enterprise shall be included. No minimum threshold of control or dependence is required, the mere existence of legal or de facto dependency links being sufficient.

1. Subject to international tax treaties, the limitation on the deductibility of general expenses of head office, studies and technical, financial and accounting assistance applies to all enterprises subject to corporate tax in Cameroon.

b. New quotas of deductible expenses