Law No. 2013/004 of 18 April 2013 fixing the incentives for private investment in the Republic of Cameroon.

The National Assembly deliberated and adopted, the President of the Republic promulgates the law reads as follows:

TITLE I: GENERAL PROVISIONS

Article 1 (1) The presence law sets incentives for private investment in the Republic of Cameroon, applicable to natural or legal persons Cameroonian or foreign, resident or non-resident, under the conduct of their business or their equity Cameroonian companies to encourage private investment and increase domestic production.

(2) This Act aims to encourage, promote and attract productive investments in order to develop activities geared towards the promotion of a strong, sustainable and shared economic growth and employment.

Article 2 (1) The provisions of this Act apply to investment activities related to the creation, extension, renewal, asset restructuring and / or processing activities.

(2) An investor who sought an award of benefits under this Act shall comply with all laws and regulations that apply.

(3) The provisions of this Act do not apply to investments in the sectors covered by specific instruments, including the upstream oil sector, mining and gas sector, and the general scheme of partnership contracts.

Article 3 For the purposes of this Act and the ensuing regulations, the following definitions are valid:

– « Force majeure » external event, unpredictable and uncontrollable for parties, making it impossible for the party subject to an obligation to honor that obligation;

– « Economic hardship » unforeseeable circumstances, without making performance impossible project, the substantially affect.

– « Export » operation is to sell or ship products, goods and services outside the national economic space.

– « Incentives » special benefits granted by the government to a natural or legal person, resident or non-resident, for the promotion and / or development of a particular activity.

– « Input » element used in the production of semi-finished or finished products (raw materials, labor, etc.). Well.

– « Investment » held and / or acquired by an investor (business, shares, stock, bonds, money market accounts, intellectual property rights, rights under contracts, rights conferred by law and regulations, other tangible or intangible, movable or immovable, and all related intellectual property rights);

– « Investor » physical or moral person Cameroonian or foreign, resident or non-resident who acquires an asset in respect of its activities in anticipation of a return;

– « Installation phase » period not exceeding five (5) years, dedicated to the construction and management of infrastructure and equipment needed to set up a production unit.

– « Operational phase » period of effective implementation of the production, which begins:

a) for new investors, office at the end of the installation phase or before the end of it, from the marketing or sale of products, as evidenced by a joint order of the ministers in charge of investments private finance and trade.

b) For companies already established in Cameroon and making new investments, from the commissioning of such investments as evidenced by a joint order of the ministers in charge of private investment, finance and trade.

– « Value added » creation or increase in value provided by the company for goods and services from third parties in the course of its normal business activities. It is measured by the difference between the production of the period, plus the gross margin on goods, and consumption of goods and services provided by third parties for this production.

PART II: COMMON INCENTIVES

Article 4 may be entitled to benefits under the provisions of this Act, any investor whose activities comply with all laws and regulations, which meets one of the following criteria:

– Jobs for Cameroonians during the operational phase, and the size of the company and the sector of activity, up to a job at least for each from five (05) million francs CFA to twenty five (25) million CFA francs planned investments, as applicable;

– Annual export activity up to 10 to 25% of sales excluding taxes;

– Use of national resources to the extent of 10-25% of the value of inputs;

– Contribution to the value added from 10 to 30% of revenue excluding taxes.

CHAPTER I: TAX INCENTIVES AND CUSTOMS

Article 5: incentives are granted to the investor during the setup and operation phases.

Article 6. : During the installation phase, which may not exceed five (5) years from the date of issue of the approval, the investor receives the following benefits:

– Exemption from registration fees of acts of creation or increase of capital;

– Exemption from registration fees leases buildings for purely professional as an integral part of the investment program use;

– Exemption from transfer duty on the acquisition of buildings, land and essential to the realization of the investment program buildings;

– Exemption from registration fees of contracts for the supply of equipment and construction of buildings and facilities necessary for the realization of their investment program;

– Full deduction for technical assistance fees in proportion to the amount of the investment, determined by the total amount of the investment;

– VAT exemption on services related to the implementation of the project and from abroad;

– Exemption from registration fees concession contracts;

– Exemption from tax;

– Exemption from taxes and duties on all equipment and materials related to the investment program;

– VAT exemption due to the importation of such equipment and materials;

– Direct removal of equipment and materials related to the investment program during clearance operations.

Article 7 (1) During the operational phase, which may not exceed ten (10) years, in consideration of the size of investments and expected from these economic benefits, the investor may receive, as appropriate, of exemptions or reductions in payment of taxes, duties and other charges following:

– Minimum charge;

– Corporation tax;

– Income tax;

– Registration rights relating to loans, loans, advances on current accounts, bonds, increase, reduction, reimbursement and liquidation of the capital, or any transfer of activities, ownership or enjoyment of property, leases or of shares;

– Tax on income from movable capital (IRCM) on the occasion of the distribution of income in the form of dividends or other to be specified in the agreement;

– Special tax revenue (TSR) phase of project development and construction on payments to foreign companies in return for work performed or used in Cameroon, provided that they are billed at cost;

– Taxes, registration fees and stamp duty in connection with the transportation of products from processing;

– Customs duties and all other fees and taxes for the importation of equipment services for all types of building materials, tools, spare parts, intermediate products, supplies and consumables n ‘ having no locally manufactured equivalent, except for duties, taxes and other charges of non-fiscal nature in the nature of a service fee;

– Customs duties applicable to the export of equipment for the construction and equipment of plants;

– Any tax, fee, charge or expense of any nature whatsoever based on the revenue generated by the processing company;

– Any tax, fee, charge or expense of any nature whatsoever based on the revenue generated by the processing company;

– Any transfer tax, the purchase or sale of foreign currency, and any indirect consumption tax which the special tax on petroleum products.

(2) the investor may also receive the following benefits:

– Deferral of losses until the fifth year following the year of their occurrence;

– The exemption to pay duties, taxes, and customs fees on imports of capital goods to be allocated and used for its investment program.

(3) At the end of the period referred to in paragraph 1 above, the investor is paid back automatically to common law.

Article 8 (1) An investor can benefit from a tax credit provided to fulfill one of the following criteria:

– Hire at least five (5) graduates of Higher Education per year;

– Fight against pollution;

– Develop sporting, cultural or social activities;

– Develop public interest activities in rural areas.

Article 9 -. Notwithstanding the benefits provided for in Article 7 above, the investor is subject to the payment of royalties, taxes, fees and other charge of any description whatsoever in the nature of a service fee . These service fees are generally applicable and proportionate to the cost of services rendered.

Article 10 -. Rules of assessment and collection of income tax are those provided in respect of corporation tax, for accounting and tax legislation in force in the Republic of Cameroon, subject to contractual provisions which may include depreciation rules and specific provisions. Article 11 -. Due to the importance of properly assessed project, the State may exceptionally extend the benefit of some tax and customs exemptions to shareholders, promoters and local contractors investor by contract.

CHAPTER II FINANCIAL INCENTIVES ADMINISTRATIVE

Article 12 -. (1) The investor is exposed to the exchange rate regime of the Republic of Cameroon.

(2) Subject to the fulfillment of obligations, particularly with regard to the exchange rate regime and tax legislation, the investor receives the following benefits:

– The right to open in the Republic of Cameroon and overseas accounts in local and foreign currency and to perform operations;

– The right to collect and retain freely overseas funds, purchased or borrowed from abroad and freely available;

– The right to collect and retain abroad freely revenue related to their operations, dividends and any kind of capital invested and the proceeds of liquidation or realization of their assets;

– The right to pay directly to the foreign non-residents of goods and services necessary for the conduct of suppliers;

– Free transfer of dividends and proceeds from the sale of action in case of disinvestment.

(3) The expatriate staff employed by the investor and resident in the Republic of Cameroon has the free conversion and free transfer to the country of origin of all or part of the amount owed, subject to the prior payment taxes and other dues to which it is subject, in accordance with the regulations.

Article 13 – The Government is committed to establishing the necessary facilities for.:

– The establishment of a specific visa and a reception desk at all the airports of the country for investors, subject to them to produce a formal invitation from the body in charge of promoting investment or the promotion of Small and Medium Enterprises (SMEs);

– The issuance of special visa above all diplomatic and consular representations of Cameroon;

– The issuance of residence permits and work permits for expatriate staff involved in any investment project and benefiting from employment contracts longer than two years;

– The issuance of environmental compliance certificates relating to divestment projects concerned;

– The issuance of land titles and long leases

PART III SPECIAL INCENTIVES

CHAPTER I PRIORITY SECTORS

. Article 14 – In addition to the above incentives, special incentives may be granted to companies that make investments to achieve the following priorities:

– Development of agriculture, fishing, livestock breeding of packaging and storage of products of animal or plant origin fisheries activities;

– Development of tourism and recreation in the social economy and crafts;

– Development of housing and social housing;

– Promotion of agro-industry, manufacturing, heavy industry, construction materials of steel metal construction of maritime activities and navigation;

– The development of the supply of energy and water;

– Encouragement of regional development and decentralization;

– Fight against pollution and environmental protection;

– Promotion and transfer of innovative technologies and research and development;

– Export Promotion;

– Promotion of employment and vocational training.

Article 15 – Any company that plans to make the investments to achieve the priority objectives referred to above is entitled, as the case for the benefit of common incentives below.:

– VAT exemption on loans related to the investment program;

– Exemption from property tax on buildings built or not, part of the site dedicated to the processing unit and all extensions estate by destination;

– Live at the request of the investor Removal;

– Recording the fixed law;

– Special Temporary Admission of industrial equipment and materials likely to export.

. Article 16 – Businesses with export operations have in their activities:

– From the exemption from export duty on locally manufactured products;

– From the inward processing under the customs code.

CHAPTER II DEVELOPMENT OF EXISTING BUSINESSES

Article 17 -. Any existing business operation, engaged in an investment program to expand its production capacity, the renewal of its assets or increase its performance can benefit for a period not exceeding five ( 5) years, common incentives referred to in Article 7 of this law, when its investment program ensures an increase in the production of goods or services or personnel Cameroon competition from at least 20%.

PART IV THE GRANTING OF APPROVAL MONITORING CONTROL

PENALTIES AND SETTLEMENT OF DIFFERENT

CHAPTER I OF APPROVAL

Article 18 -. (1) Any investor who claims to incentives provided by this Act shall be subject to approval regime, as defined by the Charter of investments.

For this purpose, the investor shall submit an application at the counter Unique created with the body in charge:

– The promotion of SMEs regarding local SMEs;

– The promotion of investments in respect of other local and foreign investors investors.

(2) The composition of the dossier provided for in paragraph 1 above shall be fixed by regulations.

(3) Desk issues a receipt to the investor. It has a period of two days to review the file and send it to the Minister of Finance.

Article 19 -. (1) The authorization is granted to the investor by the Minister of private investment, the assent of the Minister of Finance, duly attached to the approval.

(2) The Minister of Finance has a period of fifteen (15) working days to issue its assent.

(3) The Minister of private investment has a period of three (3) working days to issue the license.

(4) After this period, except rejection reasons, the deemed approval granted.

Article 20 – (1). Approval takes the form of an agreement between the investor and the Minister of private investment.

(2) The approval document specifies:

– The name;

– The purpose, scope, location of the company and the period of execution of the investment program and its induced effects;

– The date of entry into force and duration of the regime granted, distinguishing those relating to the installation and operation phase;

– The benefits granted to the beneficiary;

– The commitments vis-à-vis the State and where applicable, other specific obligations, the list of equipment, materials and approved raw materials;

– The purpose of the investment project;

– The terms and conditions specific control which the company is subject, including the investment program, the amount, staffing, wages, production, exports, the timing of the project;

– The penalties for non-compliance.

(3) In case of refusal of approval or non-compliance with the provisions of this Act, the investor may submit an appeal to the monitoring committee referred to in Article 22 below, which must decide in fifteen cheeks from the date of filing of the appeal.

Article 21 – (1) Any beneficiary investor incentives under this Act must meet the criteria that determined their eligibility in the following manner.:

– For investors who benefited from the scheme of approval during installation, no later than the installation phase;

– For investors already established in the territory of the Republic of Cameroon, within five (05) years following the commissioning of new investments.

(2) However, the authority which granted the approval may be granted additional time in cases of force majeure or economic difficulties duly noted or if the company is legitimate justifications. This additional period shall not exceed two (2) years.

Article 22 (2) A Monitoring Committee created by decree of the President of the Republic, together with the proceeds from services departments respectively in charge of finance, private investment and labor, monitoring the effectiveness of investments and the processing of appeals for investors.

(2) The Committee shall have a period of more than 30 days to notify the monitoring results at each stage of project development.

(3) The control referred to in paragraph 1 above shall include:

– The conformity of the equipment with the announced program;

– The verification of the supporting documents for imports and local purchases under the conditions prescribed in the act of accreditation, depending on the investment program presented by the company and held in the act;

– The statements of income of the company in order to obtain tax incentives included in the approval document;

– Control of jobs.

Article 23: (1) On the basis of the test results to be reported to the company, it has provided incentives for the exploitation phase, if it has already been achieved or can reasonably be achieved within the time retained.

(2) The act of approval is exposed and may result in the withdrawal of incentives therein, when they were used for purposes other than those to be retained investment program in the act. In this case, the competent authorities shall recover the unpaid taxes with penalties.

Article 24: (1) Any company receiving incentives under this Act shall contact the body responsible for the promotion of investment and Small and Medium Enterprises (SMEs) within six (6) months after the start of fiscal year an annual report on the past year, on the implementation of the investment program and specifying the data on the performance objectives that were used as eligibility criteria.

(2) The annual report gives rise to a control on eligibility criteria and the use of incentives granted in the approval document.

Article 25: During the operational phase, all import and local purchase requests must first take the visa of the body concerned in charge of promoting incentives.

CHAPTER III: THE DISPUTE AND PENALTIES

Article 26: (1) Beneficiaries investors incentives under this Act shall, in case of disputes, enter the previously Control Committee, for the settlement.

(2) They may, when the settlement was not reached, bring the dispute before an arbitration body recognized by the State of Cameroon.

Article 27: (1) Beneficiaries investors incentives provided by the present law liable when they fail to meet the objectives related to eligibility criteria, administrative, fiscal and financial sanctions that can range from a fine to removal approval.

(2) non-compliance by investors of their commitments under this Act and its implementing regulations result in the conditions laid down by regulation, and depending on the severity:

– Notice;

– Warning letter;

– Fine;

– Suspension of benefit incentives for a period not to exceed six (6) months;

– Automatic withdrawal of incentives without prejudice to penalties and prosecution under the regulations.

Article 28: (1) The penalties provided in section 23 above can occur only after a formal demand without following thirty (30) days.

(2) the notice referred to in paragraph 1 above shall be made administratively or by bailiff.

Article 29 – (1). Beneficiaries investors incentives under this Act are subject to penalties if they do not comply with the terms of inspection and control of their facilities by agents of the government approved for this purpose or do not arrive later than six (6) months after the beginning of the fiscal year the annual report referred to in Article 24 above.

(2) penalties ranging from fines to withdrawal of benefits in accordance with the laws and regulations are applied in the case of non-compliance with conditions of earnings benefits, reporting false information technical, economic or financial or refusal of submission to the arrangements for monitoring and control.

PART V MISCELLANEOUS, TRANSITIONAL AND FINAL

Article 30 -. Any investor seeking the granting of incentives under this Act is entitled to the benefit of a simplified system of administrative authorizations related to its activities for the period of validity of the approval document In this. Indeed, it has the services of Unique Window to the concerned agency management incentives, including:

– Permits the operation of its business;

– Access to administrative documents for import and use of private storage;

– Visas required for execution of investment programs, including the list of equipment and raw materials to be imported or purchased locally materials;

– Obtaining visas for foreign and national staff (entry visa or out, residence permits, work visa);

– Obtaining exemptions provided by laws and regulations;

– The eligibility of public facilities and services necessary for the proper execution of the investment program held in the approval document.

Article 31 -. (1) The State shall guarantee the stability of incentives granted to investors in accordance with the provisions of this Act, for all the expected duration of the entrustment act or agreement granting those incentives.

(2) For this purpose, a joint monitoring committee which reports to the Prime Minister is responsible for ensuring in conjunction with the Board of Control and competitiveness in the stability of these incentives.

Article 32 -. Any company which is authorized under the provisions of this Act is entitled to the same incentives as those granted subsequent to any investor in the same area and carrying out the same type of activity.

Article 33 -. Approval may be denied to an investor in competition with one or more other investors benefiting from the incentives provided by this Act, provided that the investor qualifies.

Article 34 – (1). Beneficiaries investors a previous scheme retain their benefits until the end of the validity of the scheme. However, they can claim the benefit of incentives provided in this Act for the remainder of his original plan, provided they meet the requirements without double dipping period.

(2) An accredited investor is free to proceed with a transaction involving leasing, management, merger or transfer, partial transfer of assets prior to and / or following its financial restructuring and technical input.

(3) An accredited investor can change the focus of its business or the place of its location without prior approval of the Authority for private investment.

(4) An accredited investor is liable to pay an annual fee to the body responsible for management incentives. The amount and methods of collection are available by said and fixed by order of the Prime Minister.

Article 35 -. The modalities of application of this Act shall be determined by regulation.

Article 36 -. This Act, which repeals all previous provisions, except sector codes and the general scheme of partnership contracts will be recorded and published according to the procedure of urgency and inserted in the Official Journal in French and English.

Yaounde, April 18, 2013

The President of the Republic,

(E) Paul Biya