TYPES OF TAXES IN CAMEROON
In Cameroon, taxes are divided into direct and indirect taxes.
However, some para-fiscal fees and charges are also applied to businesses.
Direct taxes in Cameroon include:
* Corporate Tax
* Personal income tax
* Property tax
* Licenses
* Permits
Indirect taxes in Cameroon includes
* Value Added Tax (VAT) Stamp duties and registration fees
* Special income tax
* Special tax on petroleum products
Para-fiscal charges / fees
> Audiovisual tax
> National Employment Fund (NEF) contribution
• Social contributions
> Credit Foncier Cameroon
> Municipal taxes
We will focus on two key direct taxes now with the rest constituted in the various pages of this book
1. TAXES ON CORPORATE INCOME
Companies that are resident in Cameroon are taxed on using their worldwide income while non-resident Companies taxed only on income sourced in Cameroon. Companies that operate in Cameroon and subject to corporate taxation include:
. Businesses that have their headquarter in Cameroon or have an effective management office in Cameroonian
• Businesses that have a permanent establishment in Cameroon or have an effective management office in Cameroonian
• Businesses that have a dependent representation in
CIs
Cameroonian
• Businesses whose activities form a full commercial cycle in
Cameroon
For entities that are located in Cameroon (residents), the corporate income tax is determined with regards to profits earned while for non-residents with permanent establishments, what is taken into consideration is only the transactions that are carried out in Cameroon.
Net taxable profit is determined after all expenses or charges that are directly incurred during the exercise of the entity’s activities have been deducted. The corporate income tax rate is 33% on profits or 2.2% on turnover. The one that is higher is regarded.
2. PERSONAL INCOME TAX
The personal income tax (PIT) is levied on all those residents in Cameroon. The PIT is based on personal acquired income. This includes expatriates whose source of income is coming from Cameroon. They are made up of
> salaries, wages, life annuities, and pensions
> profits earned by traders, farmers, landlords, artisans and liberal professionals
income from movable capital and non-trading profits for taxpayers under the simplified tax system.
Calculation of PIT
The personal income tax calculation in Cameroon is subject to international conventions. The following scale is used to apply on net wages, salaries, annuities and pensions:
> 10% as from 0 – XAF2,000,000
> 15% as from XAF2,000,001 – XAF3,000,000
> 25% as from XAF3,000,001 to XAF5,000,000
> 35% as from XAF5,000,001 upwards
The additional council tax of 10% is applied to the tax amount calculated. In the case of taxpayers who earn industrial and commercial profits, non-commercial agricultural profits, the calculated tax shall not be less than 1% of turn-over for the year before.
TAX DECLARATION
Taxes are declared at the tax center where the taxpayer is registered. To declare your taxes, the required information is from the taxpayer card and sales records (proof of income. With the advent of technology, all essential declaration at done online at www.impots.cm
TAX PAYMENT AND MODALITIES:
Payment of taxes are done directly into the taxation account at the treasurer or at the bank. Due to delay and other inconsistencies, taxes are now paid through mobile money, Direct Bank Transfer and Online Transfer Payment (OTP).
Article by CHUO ANGABUA JUNIOR
‘’The content of this article is intended to provide a general guide to the subject matter. We insist specialist advice be sought depending on your specific circumstance’’
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