Magazine date:
Dec 2018 The Cameroonian government removes the value added tax (VAT) exemption on life and health insurance contracts. The measure which dates from 11 December 2018 may hinder the development of the life insurance market.
The new law, which will come into effect in 2019, imposes a 19.25% levy on life savings and pension insurance contracts. The application of this tax on life contracts will urge the insured to deposit their money in bank accounts. It will also have a negative impact on the funding of the end-of-career benefits paid to employees.
Non-life insurers are also concerned by this abolition of VAT exemption. As for life insurance, health policies will also be subject to a VAT of 19.25%.
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