By Sidney Wache
Cameroon recently entered a new phase in the regulation of its digital economy with the implementation of the 2026 Finance Law, which came into force on 1 January 2026.
The law introduces a specific taxation framework for digital activities carried out by non-resident companies that generate income from users located in Cameroon. This reform is based on the principle of Significant Economic Presence, an approach increasingly adopted by tax authorities worldwide to address the challenge of taxing digital businesses that operate across borders without physical establishments.
Under the new legislation, a non-resident digital enterprise is deemed to have a taxable presence in Cameroon where it has at least 1,000 users located in the country or where it generates annual revenue of 50 million FCFA or more from Cameroonian users.
Once either of these thresholds is met, the enterprise becomes liable to a tax of 3 percent on gross revenue sourced from Cameroon. The tax applies regardless of whether the company maintains offices, staff, or infrastructure within national territory, reflecting the reality that digital services can generate substantial economic value remotely.
The scope of the law covers a broad range of digital activities, including online advertising services, subscription-based digital platforms, streaming services, digital marketplaces, gaming platforms, and other digitally supplied services consumed in Cameroon.
In practical terms, this framework applies to the type of global digital companies whose services are widely used in the country, such as Netflix for subscription video streaming, Meta for digital advertising and social media services, Google for online advertising and digital services, and similar international platforms that monetize Cameroonian audiences without a physical presence.
The 3 percent levy functions as a final corporate income tax on qualifying digital revenues earned by such non-resident enterprises.
However, the Finance Law allows affected companies to opt for taxation under the ordinary corporate income tax regime, currently set at 30 percent on net profits, provided they comply with full accounting, reporting, and registration requirements under Cameroonian tax law.
Contrary to claims circulating in public debate, the law does not establish a specific tax aimed directly at influencers or individual content creators. Individuals are not identified as a separate taxable category under the digital tax provisions.
Nonetheless, income earned through digital platforms, agencies, or registered companies remains subject to existing personal income tax and business tax rules. Where creators operate through structures or platforms that fall within the Significant Economic Presence framework, the tax may apply indirectly through those entities.
The law also introduces clear administrative obligations for non-resident digital enterprises. Affected companies are required to register with the Cameroonian tax administration, declare qualifying revenues through electronic platforms, and remit the 3 percent tax using approved digital payment channels. This electronic approach is intended to improve transparency and efficiency in the monitoring and collection of digital revenues.
The implementation of the digital tax is expected to reinforce the role of telecommunications and digital payment operators such as MTN, Orange, and Camtel, as digital businesses increasingly rely on structured billing systems and compliant payment infrastructure.
According to the Ministry of Finance, the reform aims to broaden the tax base, promote fairness between traditional and digital businesses, and align Cameroon with international best practices in digital taxation.
As digital services continue to expand in scale and influence, the 2026 Finance Law establishes a clearer and more predictable framework for the taxation of digital economic activity connected to Cameroon.
