Capital Gains Taxation in Cameroon
In Cameroon, the taxation of capital gains is governed by the General Tax Code (CGI), specifically Article 104. Capital gains are defined as profits realized from the disposal of movable or immovable property, including:
- Real estate
- Stocks and bonds
- Business assets
The CGI does not differentiate between short-term and long-term capital gains.
Calculating Taxable Capital Gains
Taxable capital gains are calculated as the difference between the selling price and the acquisition cost of the asset. The formula is:
Capital Gain = Selling Price - Acquisition Cost - Expenses
Adjustments or deductions are allowed for expenses related to the sale, such as brokerage fees and legal fees, as well as improvements made to the asset during ownership.
Tax Rates
Capital gains are taxed at a flat rate of 15%. However, certain exemptions and preferential treatments may apply, such as:
- Gains from the sale of a principal residence are exempt up to a certain amount.
- Gains from the sale of shares in a company are exempt if the company has been held for at least two years.
Legal Framework
The taxation of capital gains in Cameroon is outlined in the following articles of the CGI:
- Article 104: Definition of capital gains
- Article 105: Calculation of taxable capital gains
- Article 106: Tax rates
- Article 107: Exemptions and preferential treatments
These provisions aim to regulate investment decisions by incentivizing long-term investments and promoting economic growth.
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