Tax implications of investing from Cameroon

The general picture

Investing in US stocks as a Cameroonian resident creates potential tax obligations in two places: the United States (where income originates) and Cameroon (where you are a tax resident). For most retail investors at moderate investment levels, these obligations are manageable once you understand the structure.

This article is educational, not personalised tax advice. For significant investment income, consult a qualified Cameroonian tax professional.

US withholding tax on dividends: 30%

When a US company pays dividends to a non-US investor, the US government withholds a portion before it reaches your account. The standard withholding rate for non-US residents is 30%.

Cameroon does not have a tax treaty with the United States, which means Cameroonian investors pay the full 30% rate. If Apple pays you a 1.00 USD dividend, you receive 0.70 USD, the 0.30 USD is withheld automatically before the money ever arrives in your Amarah account. This withholding is handled at the broker level; you do not need to do anything.

Capital gains: the US does not tax non-residents

When you sell a US stock at a profit, the resulting capital gain is generally not subject to US tax for non-US resident investors. This is an important and frequently misunderstood point: US withholding applies to dividends and interest income, but typically not to capital gains earned by non-resident alien investors through a standard brokerage account.

Practical meaning: if you buy Apple at 200 USD and sell at 250 USD, the 50 USD gain is generally not taxed by the US. You remain responsible for declaring this gain in Cameroon if Cameroonian law requires it.

Your obligations in Cameroon

Cameroon's General Tax Code requires residents to declare their worldwide income, which includes foreign investment returns. Dividends received (after US withholding) and capital gains from the sale of foreign securities should in principle be declared in your annual income tax return.

The applicable rates and categories depend on your total income and the classification of each income type under Cameroonian law. Because this is an evolving area, practical enforcement for small retail investors is still developing, the most important step is to keep clean records and consult a local accountant annually as your investment income grows.

What records to keep

Good record keeping makes tax time straightforward and protects you in any audit. For each tax year, retain:

• Your Amarah annual transaction statement (accessible in the app under Account → Statements)
• Total dividends received: both the gross amount and the amount after US withholding
• All buy and sell transactions: date, price in USD, number of shares, fees paid
• The XAF/USD exchange rate at the time of each transaction (for converting to XAF in Cameroonian reporting)
• Any documentation of costs incurred (platform fees, etc.) that may be deductible

Why ETFs simplify your tax reporting

One practical advantage of ETF-focused portfolios: ETFs typically pay dividends quarterly (consolidated from all underlying companies), producing far fewer taxable events per year than a portfolio of 20 individual dividend-paying stocks.

A core-satellite portfolio of one broad ETF plus a few individual stocks generates a clean, short annual statement. Twenty individual dividend payers generate twenty separate dividend entries per quarter. If tax simplicity matters to you, lean toward ETFs for your core.