Gov’t eyes 5 billion FCFA revenue from foreign online businesses in 2026.

Online business has come to stay

Online businesses without offices or physical presence in Cameroon are to contribute not less than 5 billion FCFA into State coffers this year. This is thanks to a new tax system introduced in the 2026 State budget. 

Codenamed tax on foreign-based online businesses, the Directorate General of Taxation, in an official statement, explained that the tax is fixed at 3% of revenues generated in Cameroon from services offered by online businesses to users based in Cameroon.



The government agency explained that the tax system has succeeded in bringing the enterprises within its net, as per specifications enunciated in the current budget, designed to meet international requirements. 

Consequently, foreign companies like TikTok, Netfix, Amazon, among others, even though they do not have offices in Cameroon, will henceforth pay the new tax with the amount contributed yearly calculated based on income they generate from Cameroon during a specific business year.

The official document also called on the businesses, as well as online trade operators, to pay in their dues, as soon as possible, with documents of their assessable receipts, income and expenditure for tax assessment, as the tax has already gone into effect beginning from 1 January 2026.

The Directorate General of Taxation alerted that the tax could increase from 3% of revues generated to a maximum of 30% as per provisions that guide taxation of big companies and enterprises with high volume of transactions.

The taxation body went on to explain that so far, online businesses that have at least one thousand, (1,000) customers in Cameroon, or have an annual turnover of not less than 50 million FCFA, were brought under the new tax.

The institution clarified that as the number of customers continues to increase, and the amount of revenue generated rising, government is also bound to make an upward review of the tax. 

“The aim is to see this system generate at least 7 billion FCFA into state coffers annually,” the DGI release stated.

It also stated that henceforth, foreign based online business operators with customers in Cameroon, will be expected to register, make their tax declarations and proceed to effect payments accordingly.

“This will also enable the government to have accurate figures on how much revenue is generated and injected into the national economy through online business; make accurate comparison with similar local operators who are already paying the tax; so that the state can more effectively exploit opportunities of generating more revenue from a sector that has great potential for expansion in the coming years,” the official document stated.

The document announced that the development is in line with current provisions of the international organisation for economic development and cooperation, OCDE, which has called on governments to adjust their tax systems to fall in line with modern online marketing systems.

It said the international tax system has recommended a tax of up to 15% on revenues generated by online business operators even if such operators do not have physical presence in the country concerned.

 

This article was first published in The Guardian Post Edition No:3666 of Wednesday January 07, 2026

 

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