Apart from the corporate tax, companies that operate within the mining sector in Cameroon are subject to a special tax regime.
The mining tax system can be defined as the tax treatment of activities of the mining sector. It is regulated in Cameroon thus:
The mining tax system is subdivided into two branches:
- the upstream mining tax system,
- the downstream mining tax system.
The upstream mining tax system
The upstream mining tax system is related to all the operations preceding the exploitation of the mining products.
Who are the liable persons?
The liable persons are the owners of mining titles, notably the holders of prospection authorisations, research permits.
Which are the taxable operations?
The taxable operations are prospection research of mineral substances and quarry products.
What are the tax levies?
- The fix duties are due upon institution, at the renewal and upon transfer of mining titles;
- The surface area royalties;
- the proportional duties.
What is the tax base?
The tax base of the superficial royalty is the surface area defined in the constitutive act and the quantities extracted or produced.
The downstream mining tax system
The downstream mining tax system is related to the exploitation and production of mining products (substances, minerals, quarry and water products).
Who are the liable persons?
The principal mining operators downstream are:
- The exploiters of quarries,
- the providers of mining public works,
- glass makers,
- and those exploiting waters for industrial and commercial purposes with the exception of the National Water Corporation (SCE).
Which are the levies of this sector?
- the extraction tax for mining products
- the production tax for quarry products,
- a royalty on the production of spring water. This royalty is levied on spring waters, mineral waters and thermo minerals;
- drainage tax levied on pollution waters;
- the ad valorem tax levied on the exploited quantities.
What is the tax base?
The tax base of mining activities is constituted by the value of the products extracted and the quantities exploited.
What are the rates applied?
The rate of the production tax also called water royalty is in function of the quantities produced. The ad valorem tax on the other hand is levied at the rate of 5% of the value of the mining products extracted.
What are the declarative obligations of operators of the mining sector?
The mining taxes and royalties are declared and paid monthly, latest on the 15th of the month following that during which the products were extracted, with the exception of the drainage tax which is declared and paid quarterly.
Which is the system of sanctions?
Under reserve of the provisions of the mining code cited above, the sanctions provided for by the tax and customs legislation apply, mutatis mutandis, in terms of levying, collection and control of mining royalties and taxes.
Which structure is competent to receive the tax declarations of taxpayers within the mining sector?
Taxpayers of the mining sector fulfil their tax obligations with the Programme for the Securitisation of Revenue for Mines, Water and Energy created by Decree No. 2002/1722/PM of 08 October 2002. This Programme is charged with the fiscal follow up of the taxpayers under this sector.
However, companies under the portfolio of the LTU and METCs have the possibility to declare and pay at these management structures.
