Douala GMT +1
EY
+237 233-42-51-09 Boulevard de la Liberté, Ernst & Young Tower
6th Floor
Akwa, Douala Cameroon
International Tax and Transaction Services – International Corporate Tax Advisory
Joseph Pagop Noupoué
+237 233-42-51-09
Mobile: +237 6-98-00-57-03
Paris: +33 (1) 55-61-18-36 Paris Mobile: +33 (6) 74-57-72-12 Email: joseph.pagop.noupoue@cm.ey.com
International Tax and Transaction Services – Transaction Tax Advisory Joseph Pagop Noupoué
+237 233-42-51-09
Mobile: +237 6-98-00-57-03
Paris: +33 (1) 55-61-18-36 Paris Mobile: +33 (6) 74-57-72-12 Email: joseph.pagop.noupoue@cm.ey.com
A. At a glance
Corporate Income Tax Rate (%) 16.5/27.5/30.8/33 (a)
Capital Gains Tax Rate (%) 5/16.5/33 (b)
Branch Tax Rate (%) 33 (a) Withholding Tax (%)
Dividends 16.5 (c)(d)
Interest 0/16.5 (e)
Royalties from Patents, Know-how, etc. 15 Petroleum Subcontractors 3 (f)
Fees for Technical Services, Digital Services and Professional Activities, Public Procurement, and Ad Hoc Material Services from Abroad 2 to 15 (g) Specific Payments to Resident Individuals or Companies 5.5 (h) Branch Remittance Tax 16.5
Net Operating Losses (Years)
Carryback 0 Carryforward 4/6 (i)
(a) The minimum tax is generally 2.2% or 5.5% of turnover, or 15.4% of the gross margin. The 2022 Financial Law introduced a new tax regime for non profit organizations that are now subject to income tax at a rate of 16.5% when they carry out commercial activities. The minimum tax for nonprofit organizations is 1.1%. For further details, see Section B. (b) In certain circumstances, the tax is deferred or reduced (see Section B). Capital gains realized in Cameroon or abroad from the direct or indirect transfer of stocks, bonds and other capital shares of enterprises located in Cameroon are taxed at a rate of 16.5%. Capital gains on the sale of real estate are taxed at a rate of 5%.
(c) This withholding tax also applies to directors’ fees, nondeductible expenses and adjustments of profits following a tax examination. The withholding tax also applies to allowances granted to members of commissions, ad hoc or
permanent committees and to members of public, semipublic, regional or local bodies.
(d) This withholding tax applies to residents and nonresidents.
(e) Interest on savings of up to XAF10 million is exempt from withholding tax. Interest on state bonds is exempt from corporate income tax and the tax on movable capital (this tax is withheld at a rate of 16.5% from income on shares and negotiable bonds and from certain other income). The 2014 Financial Law confirms that interest on loans paid to nonresident lenders or creditors is exempt from withholding tax. Special income tax applies to all types of deliv eries that are part of public contracts or orders and that are paid for by state, regional or local authorities, public institutions, public corporations or semi public companies, or that are paid for through external financing. The rate is 15%, which is withheld at source.
(f) An optional final withholding tax is available for petroleum contractors and subcontractors of oil companies (foreign companies in Cameroon that have contracted with petroleum companies established in Cameroon). The rate of this special tax (TSR) is fixed at 15% of turnover. The 2011 Financial Law extended this tax regime to foreign individuals or companies that carry out activities on a casual (day-to-day) basis in Cameroon, subject to the prior authorization of the Director General of Taxation, issued on written request of the service providers (companies) or authorized clients. The 2022 Financial Law provides that oil contract holders and their subcontractors are exempt from the special income tax during the research and development (R&D) phase for remuneration on assistance, equipment rental, materials and all other services rendered to them for oil operations by foreign service pro viders, provided that the foreign service providers satisfy the following con ditions:
• They do not have a permanent establishment in Cameroon.
• They provide such services at cost price.
Holders of oil contracts and their subcontractors in the R&D phase that do not meet the conditions listed above may opt for the reduced rate of the spe cial income tax of 3%. Petroleum subcontractors admitted to the TSR regime must maintain supporting documentation that enables the tracing of the rel evant tax bases. They must also display on all of their bills the gross amounts of the transactions, the TSR to be deducted at source, their customers and the net amount to be paid.
(g) This withholding tax applies to nonresidents. This tax also applies to “soft ware,” which is defined as computer applications and programs relating to the operation or functioning of an enterprise. The general rate of 15% applies to all remuneration subject to this tax except for the following:
• Remuneration for ad hoc material services (defined in the 2011 Financial Law) paid to non-domiciled companies without a permanent establishment in Cameroon carrying out economic activities there, which is subject to an average rate of 10%
• Remuneration under public procurement for successful bidders not domi ciled in Cameroon, which is subject to a reduced rate of 3%
• Remuneration for the provision of access to audiovisual services with digital content, which is subject to a reduced rate of 3%
• Remuneration for services of all kinds provided to oil companies during the R&D phase, which is subject to a reduced rate of 3%
• Remuneration paid by Cameroonian shipping companies for leasing and chartering vessels, for leasing space on foreign vessels and for commis sions paid to port agents abroad, which are all subject to a reduced rate of 3%
(h) This withholding tax applies to fees, commissions, emoluments and remu neration for services that are paid to resident individuals or companies. These payments include the following:
• Payments made to persons in the self-employed professions, such as consul tants, experts, architects, physicians, auditors in charge of damages, trade intermediaries and salesmen
• Payments made to magistrates and representatives of the law (attorneys, bailiffs and notaries)
• Payments made to forwarding agents, customs brokers, stevedores, account ing firms and internet service providers.
The withholding tax does not apply to payments made for services related to transport, bank interest, insurance premiums and commissions, air ticket expenses and commissions, and water, electricity and telephone expenses.
The 10% surtax applies to the withholding tax rate of 5%, resulting in a total withholding tax rate of 5.5%.
(i) The 2021 Financial Law provides that credit institutions and companies that are in the portfolio of the state (companies in which the state or any other
legal person under public law has a share in the capital) and that are undergo ing restructuring can carry forward the surplus of the loss until the end of the sixth year following the loss year.
B. Taxes on corporate income and gains
Corporate income tax. Income tax in Cameroon is imposed on undertakings deemed to be operating in Cameroon, which are the following:
• Undertakings headquartered in Cameroon or with an effective management office in Cameroon
• Undertakings that have a permanent establishment in Cameroon
• Undertakings that have a dependent representative in Cameroon
The profits of undertakings that do not fulfill the conditions referred to above are taxed in Cameroon if they carry out activities that form a full business cycle in Cameroon.
The 2022 Financial Law introduced a new tax regime for non profit organizations when they carry out commercial activities. The tax regime of nonprofit organizations covers any entity with or without legal personality, whether public, private or religious, including foundations, whose purpose is not to seek profits for distribution among its members and whose activity is not in com petition with those carried out by profit-making entities. These include the following:
• International bodies and non-governmental organizations, subject to conventions
• Public establishments and decentralized territorial authorities, as well as their public utility boards
• Companies or organizations recognized as being of public util ity
• Public low-cost housing agencies
• Associations of any kind, legal or de facto, mutual societies, clubs and private circles
• Welfare and social security organizations
• Public and denominational educational and health institutions
• Generally, any organization with or without a legal personality and whose main mission is not to carry out commercial activi ties
Nonprofit organizations are subject to the income tax (impôt sur le revenue in French) and are exempt from corporate income tax, business license tax and real estate tax.
Tax rates. The regular corporate income tax rate is 30% (plus a 10% additional council tax).
The 2021 Financial Law provides the following corporate income tax rates:
• Taxpayers with a turnover equal to or less than XAF3 billion are subject to tax at a rate of 28% (plus a 10% additional coun cil tax). This 28% rate is applicable from the fiscal year ending 31 December 2020.
• Companies that list their ordinary shares or that issue securities on the Central African Stock Exchange (BVMAC) are subject to tax at a rate of 25% (plus a 10% additional council tax).
• Companies that are deemed to make public offerings in accor dance with the provisions of the OHADA (organization for the harmonization of business law in French-speaking Africa)
Uniform Act on Commercial Companies and Economic Interest Groups (UACCEIG), and that agree to admit and exchange all or part of their equity and debt securities on the BVMAC are subject to tax at a rate of 25% (plus a 10% additional council tax), from the date of admission of the securities.
The 2022 Financial Law provides that the income tax is levied on nonprofit organizations when they carry out commercial activi ties at a rate of 16.5% (15% plus a 10% additional council tax). A monthly advance payment of 1.1% (1% plus a 10% additional council tax) of their turnover is paid monthly to their tax center. This advance payment constitutes their minimum tax.
For companies operating under the real earnings tax regime, the minimum tax payable is 2% (plus 10% additional council tax) of monthly gross sales (turnover). For production companies in the milling sector, the minimum tax payable is 2% (plus 10% additional council tax) of monthly gross sales after a 50% rebate. However, for companies subject to the real earnings tax regime that are in the administered margin sectors, which are the distribution of petroleum, domestic gas, milling, pharmaceutical and press products, the minimum tax payable is 14% (plus 10% additional council tax) of the gross margin. Effective from 1 January 2018, these companies can opt for the minimum tax at 2% (plus 10% additional council tax) of monthly gross sales. This option is irrevocable over the year and is tacitly renewed for subsequent years until renunciation. It must be notified no later than 31 January by a simple letter to the center of affiliation (the tax center responsible for the assessment, control and recovery of all taxes, duties, and other fiscal and quasi-fiscal charges of companies within its jurisdiction). The minimum tax payable is 5.5% for companies under the simplified tax regime. For nonregistered companies, the minimum tax payable is 10%. This rate is increased to 20% for forestry companies if they do not justify an operating permit issued by the competent authority. The 2018 Financial Law introduced a minimum tax of 5% (plus a 10% additional council tax) withheld at source for public procurements under XAF5 million, regardless of the provider’s tax regime. The 2021 Financial Law provides that for companies that list their ordinary shares on the BVMAC), the minimum tax payable is 1.5% (plus 10% additional council tax). The minimum tax is creditable against corporate tax due for the current financial year.
Profits realized in Cameroon by branches of foreign companies are presumed to be distributed and are consequently subject to a branch withholding tax of 16.5% on after-tax income. This rate is subject to reduction by treaty.
Deductions at source or advance payments apply to all purchases and importations by traders, including the following:
• Purchases and importations by traders including those subject to the flat rate tax regime
• Purchases of goods from manufacturers, importers and forestry operators
• Purchases of petroleum products by petrol station owners
• Purchases of staple products by exporters
• Purchases and importations by enterprises that do not hold the taxpayer’s card (non-registered enterprises)
Exceptions to the advance payment rule apply to the following:
• Importation of goods by traders under the Specialized Management Units of the Directorate General of Taxation
• Purchases of goods by the state, councils and persons living abroad
• Purchases by registered industrialists for the operation of their enterprises if they are assessed under the real earnings tax regime
• Local purchases of petroleum products by marketers registered in the active taxpayer logbook of the large taxpayers’ unit
The following are the applicable tax rates for advance payments:
• 2% of the amount of operations realized by traders under the real earnings tax regime
• 5% of the amount of operations realized by taxpayers subject to the flat rate tax regime
• 5% of the amount of operations realized by traders under the simplified tax regime
• 10% of the amount of operations realized by registered import ers that are subject to the flat tax regime and by enterprises without a taxpayer’s card
• 14% of the gross margin for the purchase of goods with a regulated profit margin
The above rates are added to the sales price or customs value of the goods purchased. The advance payments are calculated with out the council surtax of 10%. For persons subject to corporate income tax, advance payments are creditable against their future monthly tax installments or minimum tax.
Corporations may apply for various categories of priority status and corresponding tax exemptions. The priority status varies depending on the nature of the project and the level of investments. Investment incentives. The law of 18 April 2013 introduced in vestment incentives, which are summarized below.
Installation phase. Incentives that are available during the instal lation phase (five years after the issuance of the approval) include exemption from registration duties, transfer duties, customs du ties and value-added tax for certain items.
Operational phase. Incentives available during the operational phase (10 years for all companies qualifying for the incentives) include exemptions or reductions with respect to minimum tax, corporate tax, customs duties on certain items and other speci fied taxes and fees.
In addition, companies may carry forward losses to the fifth year following the year in which the losses are incurred.
Capital gains. Capital gains are taxed at a rate of 16.5%, subject to tax treaties. Capital gains include gains on the sale of real estate, corporate shares and business assets. Capital gains on the sale of real estate are taxed at a rate of 5%. However, the tax on capital gains can be deferred or eliminated in the event of a merger.
Capital gains realized in Cameroon or abroad from the direct or indirect transfer of stocks, bonds and other capital shares of enter prises located in Cameroon are subject to tax.
If the business is totally or partially transferred or discontinued (such as in the event of a merger, liquidation or sale of the business), only one-half of the net capital gains is taxed if the event occurs less than five years after the startup or purchase of the business, and only one-third of the gains is taxed if the event occurs five years or more after the business is begun or purchased.
Capital gains realized on the Cameroonian stock market are ex empt from corporate income tax and the tax on movable capital. However, under the 2014 Financial Law, capital gains realized in Cameroon or abroad that are derived from the direct or indirect sale of shares by an individual or corporate entity holding an exploitation or exploration permit for natural resources extracted from the Cameroonian subsoil are subject to income tax on the gains.
Administration. The fiscal year runs from 1 January to 31 December. However, companies that started operating during the six-month period before the prescribed closing date can report their first results at the end of the fiscal year following the fiscal year in which they began activities.
Corporate income tax must be paid by the deadline for filing the tax return. Companies must file their income tax return by 15 March of the year following the fiscal year.
Nonprofit organizations carrying out commercial activities are subject to the same filing obligations under the same conditions as other taxpayers.
Enterprises falling under a specialized management unit are required to transmit their annual tax returns electronically through the computer system set up by the tax administration. The late filing of a nil monthly or annual return or a return with credit after an official warning is subject to a fixed fine of XAF1 million. Without prejudice to other penalties provided for in the Manual of Tax Procedures, the late filing of the annual tax return is subject to the following non-discountable fixed fines:
• XAF5 million for taxpayers falling under the large taxpayers’ unit
• XAF1 million for taxpayers falling under the medium-sized taxpayers’ unit
• XAF250,000 for taxpayers falling under divisional tax centers
Late returns are subject to interest of 1.5% of the tax due per month of delay. In addition, late payments are subject to a pen alty of 10% per month of delay, up to a maximum of 30% of the tax due, and to the following non-discountable fixed fines:
• XAF500,000 for taxes amounting from 0 to XAF5 million
• XAF2 million for taxes amounting from XAF5 million to XAF25 million
• XAF5 million for taxes amounting from XAF25 million to XAF50 million
• XAF10 million for taxes of more than XAF50 million
As of 1 January 2019, any natural or legal person regularly en gaged in the audit of the accounts or the tax review of a public or private entity must communicate a report of its work to the tax administration, no later than the 15th of the month following the
end of its duty. A failure to satisfy this requirement is subject to payment of a fixed fine of up to XAF50 million.
The tax administration is authorized to implement a special trans action procedure for tax receivables issued before 31 December 2018. This special transaction procedure runs from 1 January 2020 to 31 December 2020 and is carried out according to the conditions provided for by the 2020 Financial Law.
The minimum tax is paid in accordance with the same rules applicable to the payment of corporate income tax. Manufacturers, farmers, wholesalers, retail-wholesalers, forestry operators, petrol station owners and exporters must pay to the tax authorities the advance payment of tax on purchases by the 15th day of the month following the month of the purchase (for further details regarding advance payments, see Tax rates).
Dividends. Dividends paid to residents in Cameroon are subject to a 16.5% withholding tax (15% plus the 10% council surtax). Resident recipients must include the gross dividend in taxable income, but they receive a corresponding 16.5% tax credit to prevent double taxation. Dividends paid to nonresidents are sub ject to a 16.5% withholding tax, which is a final tax.
A parent corporation may exclude up to 90% of the dividends received from a 25%-owned subsidiary if the parent company and the subsidiary have their registered office in a Central African Economic and Monetary Community (CEMAC) country (Cameroon, Central African Republic, Chad, Congo [Republic of], Equatorial Guinea and Gabon). In this case, however, no withholding tax credit is allowed. Instead, the tax can be offset against any withholding tax due on its own dividend distribu tions.
Foreign tax relief. In general, foreign tax credits are not allowed; income of residents and nonresidents subject to foreign tax that is not exempt from Cameroonian tax under the territoriality prin ciple is taxable, net of the foreign tax. The French tax treaty, however, provides a tax credit that corresponds to withholding tax on passive income.
C. Determination of trading income
General. Taxable income is based on financial statements pre pared according to generally accepted accounting principles and the OHADA standard statements.
Business expenses are generally deductible unless specifically excluded by law or by the provisions of an international conven tion. Expenses that are not deductible include the following:
• Head office overhead, research costs and technical, financial and administrative assistance fees paid to residents or nonresi dents that exceed any of the following:
— 2.5% of taxable profits for ordinary law companies before their deduction
— 1% of turnover for public works projects
— 5% of turnover for design and engineering services
• Royalties from patents, brands, models or designs paid to a nonCEMAC corporation participating directly or indirectly in the management of, or owning shares in, the Cameroonian
corporation are the deductible up to an overall limit of 2.5% of taxable income before the deduction of the expenses.
• Rent expense for movable equipment paid to a shareholder that manages the company in fact or by right and holds, directly or indirectly, more than 10% of the capital.
• Losses related to bad debts that do not comply with the enforce ment measures provided in the OHADA Uniform Act relating to the organization of simplified procedures for collection and enforcement. However, the 2022 Financial Law provides that losses relating to bad debts of less than XAF500,000 that have been provisioned over a minimum period of five years are auto matically admitted as a deduction, without it being necessary to prove that the amicable or forced recovery procedures provided by the regulations in force have been exhausted.
• Losses related to damages that have not been duly noted and validated in the presence of a tax agent having at least the rank of controller.
• Losses related to damages and breakages exceeding the flat rate of 0.5% of the overall production volume, incurred by compa nies in the brewing sector.
• Losses resulting from misappropriation by a shareholder or manager of the company, or losses attributable to the negli gence of management.
• Liberalities, gifts and subsidies exceeding 0.5% of the turnover of research, philanthropic, development, educational, sports, scientific, social and family institutions or bodies.
• Gifts and subsidies exceeding 5% of turnover of clubs partici pating in official national competitions and the bodies in charge of organizing these competitions.
• Interest paid to shareholders in excess of the central bank annual rate plus two points, if (as provided by the 2021 Financial Law) the following conditions are not satisfied:
— Existence of a written and duly registered loan agreement
— Full payment of the subscribed share capital
• Under the 2014 Financial Law, the deductibility of interest paid to shareholders owning directly or indirectly at least 25% of the capital or voting rights of the company is subject to the follow ing two cumulative conditions:
— Interest paid may not exceed one and one-half of the amount of real capital for all shareholders.
— Interest paid to such affiliates may not exceed 25% of the income before income tax and deduction of such interest and depreciation.
• Commissions and brokerage fees for services on behalf of com panies located in Cameroon that exceed 5% of purchased imports and sales of exports.
• Remuneration granted to wage earners that are excessive in comparison to the services rendered and that do not correspond to effective work and conventional norms.
• Amounts set aside for self-insurance.
• Certain specific charges (such as contributions other than those for retirement paid to a foreign social security organization, which are deductible up to a limit of 15%, and premium insurance paid to companies located in Cameroon for employees’ retirement indemnities), gifts, subsidies and penalties (to some extent).
• Expenses paid in cash of XAF500,000 or more. The XAF500,000 limit is assessed with respect to the total amount of specific expenses recorded in the expenditures account. Accordingly, splitting an expense worth XAF500,000 into two equal parts of XAF250,000 each and paying them in cash does not result in the deductibility of the expenses. Under the 2014 Financial Law, all reimbursements of loan advances to shareholders paid in cash are treated as dividends and are accordingly subject to dividend withholding tax.
• Expenses paid to local suppliers without reference to a Cameroonian tax identification number and without an invoice that complies with the standard requirements for the deduct ibility of expenses.
• Remuneration paid to liberal professionals in violation of the regulations governing their respective professions.
• Expenses for services and certain purchases paid to natural persons or nonresident legal entities established in territories or states considered to be tax havens.
• Expenses paid to affiliated companies established in Cameroon, especially when the affiliated companies benefit from a special tax regime.
• Disbursements from tax havens invoiced to local companies by other companies located in or outside tax havens.
Inventories. Inventory is normally valued at the acquisition cost or at the lower of cost or market value. Cost must be determined on a weighted average cost-price method. The first-in, first-out (FIFO) method is also generally acceptable.
Provisions. In determining accounting profit, companies must establish certain provisions, such as a provision for a risk of loss or for certain expenses. These provisions are normally deductible for tax purposes if they provide for clearly specified losses or expenses that are probably going to occur and if they appear in the financial statements and in a specific statement in the tax return.
The 2020 Financial Law provides that in addition to the general conditions for the deductibility of provisions mentioned above, provisions for doubtful receivables must satisfy the following conditions:
• They must be constituted on receivables entered on the assets side of the balance sheet and not covered by real guarantees.
• They have given rise against the debtor the implementation of the means of amicable or forced recovery provided for by the OHADA Uniform Act on the organization of simplified recov ery procedures and means of execution.
Insurance companies may deduct technical provisions provid ed by the Conférence Interafricaine des Marchés d’Assurance (CIMA) Code.
Capital allowances. Land and intangible assets, such as goodwill, are not depreciable for tax purposes. Other fixed assets may be depreciated using the straight-line method at rates specified by the tax law. The 2022 Financial Law states that depreciation rates specific to certain sectors of activity may be fixed by a special
joint text of the ministers in charge of finance and the sector con cerned. Small equipment and other items that have a value not exceeding XAF500,000 without tax are directly accounted for as charges and considered deductible expenses.
Legal revaluation of fixed assets. The 2011 Financial Law estab lished a regime for the legal revaluation of tangible and intangible fixed assets, regardless of whether the assets are depreciable. The revaluation must occur by 31 December 2013. The capital gain resulting from revaluation is subject to a withholding tax at a rate of 5%. This is a final tax. The 5% withholding tax is not due if the amount of the capital gain is reinvested within two financial years.
Relief for tax losses. Losses may be carried forward for four years. Losses attributable to depreciation can be carried forward for a period of 10 years. They must be charged as of the first profitable year. Losses may not be carried back.
Groups of companies. The Cameroonian tax law does not provide for the fiscal integration of Cameroonian companies equivalent to a consolidated filing position.
D. Other significant taxes
The following table summarizes other significant taxes.
Nature of tax Rate (%)
Value-added tax, on transactions carried out in Cameroon; certain transactions are exempt Standard rate 19.25 Exports 0
Business license; rate varies depending on the amount of turnover Various Radio-television tax, equal to the business license; payable by companies subject to the business license Various Registration duties, on transfers of real property or businesses 1 to 15 Payroll taxes, paid by employer 2.5
Social security contributions on an employee’s annual gross salary, limited annually to XAF9,000,000, with a minimum of XAF750,000 per month
Family allowances, paid by employer 3.7 to 7 Old age, disability and survivor’s pension; paid by Employer 4.2 Employee 4.2
Social security contributions on an employee’s annual gross salary for job-related accidents and diseases; paid by employer 1.75 to 5 Tax on money transfers 0.2
E. Miscellaneous matters
Foreign-exchange controls. Exchange-control regulations exist in Cameroon for financial transfers outside the franc zone, which is the monetary zone including France and Monaco. A CEMAC
rule (No. 02/18/CEMAC/UMAC/CM, dated 21 December 2018) applies to all of the CEMAC countries.
Transfer pricing. In 2020, the 2020 Financial Law reorganized the provisions of Article M19 bis (now “Article M19 bis (new)”) in Book II of the General Tax Code on Manual of Tax Procedures.
Companies with annual turnover excluding tax that is equal to or greater than XAF1 billion and that are under the control of or control other companies are required to present to the tax admin istration agents, on the date of the commencement of the accounting audit, documentation enabling them to justify the transfer-pricing policy practiced in the context of transactions of all kinds carried out with related companies. The content of the documentation relating to transfer pricing, which does not replace the supporting documents relating to each transaction, will be determined by a specific text (which has yet been pub lished).
If the required documentation is not provided to tax officials or is only partially provided on the date the audit begins, the tax administration sends the company concerned a notice to produce or complete it within 15 days, specifying the nature of the documents and additions expected. This formal notice must indicate the sanctions applicable in the absence of a response or in the event of a partial response.
Failure to respond or partial response to the formal notice men tioned above results in the application, for each audited financial year, of a fine of 5% of the amount of the transactions related to the documents or supplements that have not been made available to the administration after formal notice. The amount of the fine, which applies per transaction, cannot be less than XAF50 mil lion.
Under the 2020 Financial Law, companies that belong to the large taxpayers’ unit and that are under the dependency of other com panies or control other companies are required to deposit an annual declaration on transfer pricing by electronic means no later than 15 March. This declaration notably includes general information on the group of associated companies and specific information concerning the reporting company. The declaration should be done according to a model to be established by the tax administration. However, the model has not yet been communi cated to taxpayers.
The 2020 Financial Law provides that dependency or control links are deemed to exist between two companies if either of the following circumstances exist:
• One directly or through an intermediary holds 25% of the oth er’s share capital or in fact exercises decision-making power in the other company.
• They are both placed, according to the conditions mentioned above, under the control of the same company or the same per son.