Taxes and dues applicable in the oil sector

Apart from the company tax, the companies that operate in the oil sector in Cameroon are subject to a special tax system.

The resources of the sub-soil being owned by the nation, research or exploitation of hydrocarbons is subject to the prior obtaining of an authorisation.

Petroleum activity is divided into two sectors:

• The upstream sector constituted of exploration, research or production ;
• The downstream sector which is composed of exploitation and distribution

What is the legal framework of the oil tax system?

The oil tax system is governed by the following texts:

• The General Tax Code in its sections 229 to 238, as well as its various modifications ;
• Ordinance No.94/004 of 16 February 1994, together with its modifications ;
• Law No.99/013 of 22 December 1999 on the petroleum code;
• Decree No.2002/032/PM of 03 January 2002 fixing the modalities of the application of the abovementioned law ;
• The establishment conventions of oil companies.

Which are the tax deductions of petroleum activities?

With the exception of the taxes and levies provided by common law, oil activity is subject to the following special taxes:

• The tax on the profits of oil companies;
• the special tax on petroleum products;
• fix duties and the surface area royalty.

What are the tax obligations of taxpayers of the oil sector?

the obligations to file returns

• the declaration of the tax on the profit of oil companies : any oil company installed in Cameroon is bound to declare all the profits realised, determined by taking into account its products and its expenses ;
• the special tax on petroleum products: the STPP collected by oil companies should by declared at the latest on the 15th of each month for operations realized in the course of the previous month.
• the declaration of fix duties and surface area royalties: surface area royalties are declared latest on the 31 January of the year.

Payment obligations

The declaration of the various taxes is accompanied by simultaneous payment.

The tax on oil companies is paid in three instalments, latest the 31 October, the 31 January and the 30 April.

The STPP should be paid latest on the 15th of the month following the taxable operations.

The surface royalty and the fix duties are paid latest on the 31st January of the year.