The Cameroon tax system is very similar to the tax systems practiced in many countries in the world. That is, the income tax concept of Cameroon is same as that of other countries of the world. It is divided into two main sub-groups – individual and business.
We can divide it into direct, indirect and para-fiscal fees or charges
Direct taxes include
Para-fiscal charges / fees
It can also be subdivided into personal income tax and corporate tax. Before we continue, we need to see one tax that is considered in all the other taxes. I am talking of the Additional Council Tax
An additional council tax is applied on personal income tax, corporate tax, excise duties and Value Added Tax for the benefit of councils. It is 10% of the principal tax to be paid.
Any business that is resident in Cameroon is taxed on income received for activities carried within the territorial boundaries. Non-resident businesses are also taxed on income sourced in Cameroon. For residents, what is taxed is the profits earned while non-residents are taxed on the transactions they carry out in Cameroon. The net taxable income is determined after all expenses or charges that are directly related to the activities have been deducted.
Corporate income tax rate in Cameroon
The personal income tax is calculated following a scale which is applied on net wages, pensions or salaries. This calculation is subject to international conventions.
The tax system applied in Cameroon is declarative. However, the tax administration may send pre-filled tax return forms for revenue owed to the tax payer. Taxpayers declare their taxes at the tax center where they are registered. They fill a pre-filled form obtained from the tax office. The tax administration has also made it possible for taxpayers to fill this form online .
The Cameroon tax system follows the calendar year for its taxable period. Each taxpayer is supposed to submit their statistics and tax returns for the year on or before March 15 the following year.
Advance income tax are also paid on a monthly bases. Taxpayers are obliged to do this on or before the 15th of every month. These advance tax payments are deducted from the annual tax gotten after the taxpayers have declared their statistics and tax returns.
This post was brought to you thanks to Ess.BE, a quality control management consultancy based in Douala – Cameroon
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This content has been prepared for information purposes only. It is not intended to provide, and should not be relied on for, tax, accounting or legal advice. You need to consult your own tax, accounting or legal advisors before engaging in any transaction.