Cash payment limits reduced from 500K to 100K in Cameroon. In this post, you’ll see how to adapt your payments with the altered cash ceiling.

In today’s tax tip, I will share an update on Cameroon’s tax laws that you’ll want to be aware of.

As you may have known, the 2023 Finance Law recently passed some changes in the General Tax Code of Cameroon.

Today, I’ll be writing about one important change that impacts cash transactions.

I will talk about Section 8(1) of the General Tax Code that has been amended.

Disclaimer: The following content is for informational purposes only and does not constitute tax, legal, or business advice. 
For personalized assistance, please consult with qualified experts. Visit our website, OpenHub Consulting, for professional tax declaration, bookkeeping, and stock management services.

Previously, any expenses of 500,000 CFA or more paid in cash were considered non-deductible. However, the new law states this threshold has now been lowered to 100,000 CFA.

In practical terms, this means businesses are allowed to make cash payments only below 100,000 CFA.

Anything amounts equal to or above 100,000F should be handled through traceable payment methods, not cash, if you want them counted as deductions.

The limit has effectively been reduced by 400k CFA.

While adjusting to new regulations takes effort, this amendment ultimately aims to promote transparency within the tax system.

With a lower cash ceiling, it becomes easier for both businesses and authorities to clearly track qualifying expenditures.

Let me share a quick scenario to illustrate compliance:

Imagine these two companies – Alpha Industries and Beta Corp. Both have a large order coming in from a supplier that totals 150,000 CFA. Alpha wisely pays using their Orange Money account.

Because the payment was done electronically rather than cash, Alpha can rightfully claim the full cost as a tax deduction later this year. They’re staying on the right side of Section 8(1).

Meanwhile, Beta Corp’s manager decides to pay in cash as usual. But with the threshold now at 100k, that cash payment is ineligible for deductions.

Beta could face problems come tax filing time since part of their expenses can’t be accounted for.

When doing payments meeting or exceeding 100,000 CFA, ensure to use traceable options like mobile money, checks, or bank transfers.

Compliance makes running your operations smoothly a breeze. Stay posted for more tax updates that can benefit you!

This small shift ensures your business continues to benefit from all eligible deductions. It also helps build trust with tax officials over time.

While change can be an adjustment, keeping up with the written law will serve you well in the long run.

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