Introduction
Each year, Cameroon’s Finance Law sets the economic and fiscal tone for the country. It determines not only how public resources will be raised and spent, but also how businesses and individuals will be taxed, regulated and supported. The 2026 finance law reflects the Government’s current economic priorities and its long term development ambition.
Prepared in accordance with the guidelines set out in Presidential Circular No. 001 of July 18, 2025, the 2026 Finance Law aligns with the ongoing implementation of Cameroon’s 2020-2030 National Development Strategy (NDS30). It seeks to reinforce structural reforms aimed at diversifying the economy and strengthening public finances, with this year’s budgetary policy specifically focused on consolidating public finances in order to keep public debt at a sustainable level.
In terms of revenue, fiscal policy aims to ensure the optimal mobilization of non-oil domestic revenue while maintaining the sustainability of economic activity, particularly by avoiding creating economic distortions that could harm business development and competitiveness. It also seeks to strengthen resources allocated to all 10 administrative Regions through the implementation of the provisions set out in Law No. 2024/020 on local taxation.
The 2026 Finance Law adopts an approach that preserves a focus on compliance while introducing certain fiscal innovations. The following highlights provide a summary of the key measures introduced under the 2026 Finance Law:
- Improvement of the business climate
- Broadening tax base
- Revenue security
- Promotion of tax compliance
- Fight against fraud and evasion
Improving the Business Environment
To strengthen the business environment and promote economic growth, the 2026 Finance Law introduces several key measures, including incentives to encourage the recruitment of young graduates, aimed at boosting employment and skills development. It also provides targeted tax relief for exceptional or one-off income, such as income arising from asset disposals or other non-recurring transactions, in order to ease the tax burden in situations that are not part of a business’s ordinary activities. Further reforms include adjustments to the withholding tax regime applicable to rental income, alignment with ongoing domestic tax reforms to enhance coherence and clarity, and new rules regulating mobile payment fees to improve transparency in digital transactions. In addition, the Finance Law clarifies the conditions under which rent paid to a majority shareholder may be deductible, offering greater certainty for corporate structuring and tightening deductibility rules for certain expenses involving related-parties.
Broadening the Tax Base
To broaden the tax base, the government has adopted a multifaceted approach that ensures fair contribution across sectors and activities. This includes taxing non-resident digital companies to capture revenue from the growing online economy, raising excise duties on wine and spirits to enhance fiscal intake from luxury consumption and ensuring that all economic actors contribute proportionately to public finances.
A reduced VAT rate of 10% has also been instituted to stimulate compliance and expand coverage. Additionally, corporate tax on foreign transport companies ensuring an equitable treatment of cross-border operators, while gradually increasing property tax to strengthen local revenue streams. Also, in order to strengthen customs controls, the Finance Law increases penalties for under invoicing and also enforces the obligation for data sharing between the customs department and the tax authorities.
Revenue Security
To ensure revenue security, the government strengthens fiscal measures by applying withholding tax on telecom distributors’ purchases, which guarantees upfront collection and reduces the risk of tax evasion; enhancing international recovery assistance mechanisms to improve cross-border cooperation in tracking and reclaiming unpaid taxes; and reinforcing frameworks for securing the taxation of public spending, ensuring that expenditures are transparently monitored and appropriately taxed to prevent leakages and misuse of funds. Together, these measures create a more resilient and accountable revenue system that safeguards national resources while promoting compliance and fiscal stability.
Support for Green Energy and Water Projects
Section 6 of the 2026 Finance Law extends, for a further twenty-four (24) months, the exemption from import duties and taxes on equipment and materials intended for drinking water supply, solar and wind energy, and biomass production. This exemption, initially introduced under the 2024 Finance Law, remains subject to the same terms and conditions.
This extension provides continued cost relief for renewable energy and water infrastructure projects and offers greater predictability for businesses and investors operating in the green energy space.
Promotion of Tax Compliance
To promote stronger tax compliance, taxpayers are reminded of their obligation to file a prior declaration in the event of cessation of activities, ensuring transparency and proper closure of their fiscal responsibilities. In addition, penalties for failure to report have been reinforced, underscoring the importance of timely and accurate declarations to avoid costly sanctions. Finally, the requirement for a tax certificate to enforce accountability has been extended as it now serves as proof of compliance and a prerequisite for engaging in various administrative and business processes. Together, these measures aim to foster a culture of responsibility, fairness, and trust in the tax system.
Fight against Fraud and Tax Evasion
To strengthen the fight against fraud and tax evasion, the Finance Law introduces the automatic application of taxation in cases where accounting records are considered unreliable. This measure is intended to deter manipulation of accounts and encourage greater compliance.
The law also introduces targeted measures in favour of persons with disabilities, including tax reliefs and exemptions designed to promote equity and protect vulnerable groups from undue financial burdens. In addition, adjustments have been made to excise duties on basic television packages to ensure fair pricing and accessibility, while at the same time limiting opportunities for tax avoidance within the media and entertainment sector. Taken together, these measures aim to enhance transparency, promote inclusivity and improve the overall efficiency of revenue collection.
Conclusion
The 2026 Finance Law reflects a clear shift in Cameroon’s fiscal policy toward stronger compliance, broader taxation and more targeted incentives. While the law maintains support for priority sectors and vulnerable groups, it also reinforces enforcement mechanisms and reduces tolerance for informal practices.
For businesses and individuals alike, understanding the structure and intent of the 2026 Finance Law is essential. The law signals the direction of regulatory oversight and the expectations placed on economic actors. Early review, proper documentation and informed decision making will be key to managing risk and adapting to the evolving tax and regulatory environment.
How CLG Can Assist
CLG advises businesses on the practical implications of Cameroon’s Finance Laws, providing legal and tax support on compliance, structuring and regulatory risk management.
