In our previous post, we talked of the various tax payment options in Cameroon. Some people asked me about the bank charges involved and others complained that they don’t even know the exact method the bank uses to calculate the fees. I decided to do this post to help clarify taxpayers on what it takes to pay your taxes through bank transfer in Cameroon.
As I wrote in my previous post, there’s available threshold for paying your taxes at the cash desk of the bank or through a bank transfer. However, taxpayers in the category of “Large Enterprises” are obliged to pay their taxes through bank transfer in Cameroon. It should be noted that before the application of the 2017 Finance Law, only taxpayers of the large and medium size sector were obliged to pay their taxes through bank transfers.
This was extended to specialized tax centers on January 1, 2017 where taxes were to be paid using other electronic methods or fully paying their taxes through bank transfer in Cameroon. This was when the 2017 Finance Law was applied.
Things to take note of when paying your income tax or levies
- Amounts paid in cash or by electronic money must be less than 100,000FCFA. The 2018 Finance Law modified this to cash at the cash desk of banks removing the limits and not allowing taxes to be paid at tax centers. However, some tax centers are still allowed to collect in cash respecting the limits given.
- By bank transfer, certified checks or electronic money amounts equal to or greater than 100,000FCFA
- By bank transfer or electronic money for businesses that are in the specialized tax units. This includes those in the Directorate of Large Enterprises (tax department for large enterprises), the Taxation Centers for Medium-sized Enterprises and specialized tax centers.
- A receipt must be issued after payment. Note that all receipts are exempted from stamp duty. A duplicate of the receipt shall be issued upon request in the case the taxpayer needs one.
The electronic payment or e-payment entails any payment done with the aid of a telephone like mobile money, the Internet or any other automated method.
Paying taxes through bank transfer in Cameroon – Fees
When paying your income tax, levies and other taxes or duties through bank transfer, the fees applicable as provided by the law is within the range of 500FCFA to 10,000CFA. The fees shall in no circumstances be more than a 10% equivalent of the taxes or duties paid. For this to happen, the following provisions have been put in place by the tax administration in Cameroon:
- All bank charges incurred when making payments through bank transfers must be between 500FCFA to 10,000FCFA
- The charges should in no way exceed 10% of the amount that has to be paid
- The rates should also cover the bank transfer as well as the costs incurred for the issuance of a bank transfer attestation. To clarify this more, the entire costs of paying taxes through a bank transfer should not be more than 10,000FCFA or 10% of taxes paid
Illustrations
1. Fees invoiced should be between 500 to 10,000 francs CFA and should not exceed 10% of tax amount paid
2. If the fees invoiced is within the range of 500 to 10,000FCFA but more than 10% of tax amount transferred, the fees applied should be capped at 10% of the amount of tax to be paid
3. In the case where the fees charged by the bank is more than 10,000FCFA and does not exceed 10% of the amount of tax to be transferred, the taxpayer will pay only 10,000FCFA.
Source: GTC Section M 7