Cameroon’s rapidly growing e-commerce sector has become a new focus for policymakers seeking to expand the national tax base and modernise revenue collection. Online commerce platforms in the country posted an 18 percent increase in revenue in 2024, reflecting the rising role of digital trade in everyday commercial activity, according to a mid-term review of the National Development Strategy 2020 to 2030. This upward trend has prompted fiscal authorities to introduce new tax measures aimed at capturing value from the digital economy and ensuring that both local and foreign digital businesses contribute to state revenue.
The 2026 Finance Law, signed into effect at the start of the year, introduced a 3 percent turnover based digital tax on revenue generated by foreign online platforms that operate in Cameroon without a physical presence. This development marks a significant shift in tax policy, bringing e-commerce revenue and digital services into the country’s formal tax net for the first time. Platforms such as social media giants, e-commerce marketplaces, streaming services, and online gaming sites now face fresh fiscal obligations if they derive income from Cameroonian users.
E-Commerce as a growth engine and new tax focus
The recent revenue growth from e-commerce platforms highlights the increasing significance of digital trade in Cameroon’s economy. Consumers, particularly younger and urban populations, have embraced online shopping, mobile payments, and digital platforms to transact goods and services. This behaviour aligns with broader global trends in digital commerce, where online retail and digital services continue to expand year on year.
Recognising this dynamism, Cameroon’s tax authorities have moved to formalise taxation in sectors previously under-regulated. The new digital tax policy targets foreign platforms that generate revenue from local users, a strategic move designed to capture income that historically went untaxed due to the absence of a local physical presence. Under the policy, a platform is considered to have a significant economic presence and therefore subject to tax if it reaches at least 1,000 users in Cameroon or earns an annual revenue threshold equivalent to approximately CFA50 million locally.
This tax regime represents an attempt to bridge a regulatory gap in the digital economy. Previously, foreign digital companies provided services and facilitated commerce in Cameroon without being required to pay national taxes due to limitations in the tax code. The new rules extend fiscal obligations to online operators including e-commerce marketplaces, advertising platforms, streaming services and other digital intermediaries that draw income from Cameroonian users.
Impacts on digital platforms and businesses
The introduction of this digital tax has immediate implications for foreign platforms serving Cameroonian consumers. Affected platforms are required to register with the national tax system, declare their revenues and remit a minimum 3 percent levy on gross income generated from local users. Alternatively, some platforms may choose to be taxed under the ordinary corporate tax rate, around 30 percent on net profit, if they can document local profit figures. This creates choices for digital businesses but also necessitates compliance mechanisms that were previously not in place.
Local tech entrepreneurs and digital startups following the global trend of digital commerce may also feel the impact. While the new regime is designed to capture revenue from large foreign entities, there are concerns that increased compliance requirements and potential pass through costs could affect smaller businesses operating online. Concerns have been raised about how smaller digital sellers will navigate the new tax landscape, particularly around reporting obligations, user thresholds and administrative processes.
Government objectives and revenue strategy
Cameroon’s expansion of its digital tax base is part of a broader revenue mobilisation strategy outlined in the 2026 Finance Law and related fiscal reforms. Policymakers have emphasised the need to diversify revenue sources, modernise tax collection and reduce dependency on traditional tax categories alone. By integrating digital and online platforms into the tax system, the government aims to ensure a fairer contribution from all sectors benefiting from the domestic economy.
The digital tax measure sits alongside other efforts to strengthen Cameroon’s fiscal architecture, including digital transformation initiatives for customs duties, wharfage fee collections and VAT automation, which are intended to improve transparency, reduce fraud, and increase compliance across sectors.
By capturing online commerce revenue through structured taxation, Cameroon seeks to align its fiscal framework with the realities of a digital economy that increasingly shapes business activity. This approach mirrors global trends, as many countries adjust their tax codes to accommodate digital trade and ensure multinational and platform based firms make appropriate contributions to public finances.
Policy implications and sector prospects
Cameroon’s decision to tax digital trade marks a defining moment in the evolution of its fiscal policy. As e-commerce continues to expand, authorities will need to strike a careful balance between revenue generation and sustaining innovation in the digital space. Effective enforcement, transparent guidelines, and collaboration with digital service providers will be essential to avoid unintended disruptions.
If managed efficiently, the integration of digital trade into the national tax framework could strengthen public finances while preserving the momentum of Cameroon’s growing online marketplace. The long term success of the policy will depend on how well regulators support compliance, protect smaller operators, and maintain an enabling environment for digital entrepreneurship and investment