Cameroon

Cryptocurrencies in Cameroon are legally classified as intangible assets, not as legal tender or currency. While personal ownership and trading of cryptocurrencies are considered legal, a directive from COBAC in May 2022 prohibits banks and financial institutions from facilitating crypto transactions. This means individual crypto activities operate largely outside the formal banking system. The Ministry of Finance (MINFI) oversees cryptocurrency taxation in Cameroon. Taxation of crypto assets and activities falls under the general provisions of the country's General Tax Code and is further guided by Circular No. 002/MINFI/CAB of 10 January 2018. Profits from selling cryptocurrencies, whether exchanged for fiat currency or other cryptocurrencies, are subject to a flat 15% capital gains tax. There is no distinction between short-term and long-term holdings, long-term holding does not offer a reduced tax rate or exemption. Income generated from crypto-related business activities, such as mining, staking, or DeFi, is taxed at a progressive rate ranging from 15% to 30%, depending on the size and nature of the business. Additionally, a Value Added Tax (VAT) of 19.25% is applied to goods and services purchased using cryptocurrency. Mining rewards, staking yields, and revenue from DeFi activities like yield farming are all classified as business income and are subject to the progressive 15-30% income tax rates. Deductions for business expenses, such as hardware and electricity costs for mining, are generally allowed. Non-fungible tokens (NFTs) are also treated as intangible assets, and any profits realized from their sale are subject to the 15% capital gains tax. Crypto-to-crypto trades are considered taxable events, incurring the 15% capital gains tax on any profits.