Cameroon: Significant economic presence standard introduced from 2026
Finance Act for 2026 introduced a new significant economic presence standard
Cameroon’s parliament on November 26, 2025, adopted the Finance Act for 2026, which introduces a new significant economic presence (SEP) standard effective January 1, 2026.
SEP threshold
Taxpayers will be considered as having a SEP in Cameroon if either (1) their gross receipts from digital services to customers or users located in Cameroon exceed FCFA 50 million (approx. US$89,000) in a tax year; or (2) they have more than 1,000 users, customers, or account holders located in Cameroon in a tax year.
The legislation explicitly states that the revenue threshold includes all payments made by or on behalf of Cameroonian residents, even if routed through third parties (i.e., marketplaces do not take over the tax obligation).
Digital activities in scope
The legislation does not include a generic definition of “digital services” but rather lists activities including streaming and downloads, online games, subscriptions, online advertising and monetizing user data, marketplace intermediation/commissions, cloud, data hosting, SaaS, and any service provided or facilitated through an electronic network or digital app.
Sourcing
Cameroon determines customer location based on technical indicators (IP address, geolocation, SIM country code) and commercial indicators (billing address, Cameroonian bank details) to show the service was effectively used in Cameroon.
Tax base
For nonresident companies with SEP, Cameroon sets taxable profit for the relevant digital income at 10% of gross income earned in Cameroon. Cameroon then applies a 3% tax to gross income from Cameroon‑sourced digital activities. This 3% equals a 30% rate applied to the 10% deemed profit, and it functions as a final tax that settles the Cameroon corporate income tax liability for that income. Instead of the 3% final tax on gross income, a company may opt to pay corporate income tax at the standard 30% rate on its actual net profit.
Compliance
Nonresident companies with SEP must file a monthly return reporting their Cameroon‑sourced gross receipts and pay the tax by the 15th day of the month after the taxable event.
Future regulation
The legislation states that detailed rules regarding threshold computation, activities in scope, and sourcing will be set by regulation. Moreover, the tax administration will provide a secure online portal for registration, filing, and payment.
For more information, contact a KPMG tax professional:
Philippe Stephanny | philippestephanny@kpmg.com
Chinedu Nwachukwu | chinedunwachukwu@kpmg.com
Theophile Tchafack | ttchafack@kpmg.cm
Nguy Blaise Feindjom | nfeindjom@kpmg.com