Good news for Cameroonian businesses! The government of Cameroon, according to the proposed 2023 finance bill, may reduce corporate tax rate from 28% to 25% for businesses with a yearly turnover of XAF3 billion and below.
This is a positive development and which encourage more businesses to grow as well as invest in Cameroon.
According to Article 17(a) of the 2022 General Tax Code, “the corporate tax rate for taxpayers with a turnover equal to or less than CFAF three (3) billion is set at 28%”.
With the new proposal, businesses that fall under the bracket will have a corporate tax rate of 25%. This new rate will be applicable from the fiscal year ending on 31 December 2022.
It should be noted that the previous rate (28%) has been used only in the 2021 fiscal year.
What may happen after corporate tax rate reduction!
This move will help to stimulate the economy and create more jobs. It will be great news for small businesses, as it will help them to stay competitive and grow.
Previously, the corporate tax rate in Cameroon was one of the highest in Africa. This new reduction will help to make the country more attractive to investors, and will help to promote economic growth.
Also Read:
– Pros & Cons of a Low Corporate Tax Rate
– Why do Governments Reduce Corporate Tax
The reduction is part of a larger effort by the government to make doing business in Cameroon easier and more attractive. In addition to the corporate tax cut, there are a number of other measures being put into place to improve the business climate, including:
– A reduction in export duties and increase in import duties in some sectors
– The elimination of certain administrative procedures
– The simplification of tax rules
All of these measures should help to make Cameroon a more attractive destination for businesses, both large and small.
This reduction will benefit firms across all sectors through enhanced competitiveness.
It is always easier, whenever there is improvement such as the reduction in corporate tax, or increased duty, to be better for small businesses than large companies which may operate more advantageously through expansions or mergers.