Comprehensive Tax Rates Explained

Comprehensive tax rates – what your business owes

It is important for businesses under the comprehensive regime to know the tax rates

The tax system applies fixed tax rates based on turnover brackets. This makes tax obligations predictable and easier to manage by taxpayers.

How Comprehensive Tax Rates Are Determined

The tax is assessed based on annual turnover from the previous financial year.

AI Video Creation Tool

Businesses fall into different tax brackets, with fixed amounts to pay per year, spread into quarterly installments.

Comprehensive Tax Rate Brackets

Here’s how the tax is structured:

Annual Turnover (FCFA)Annual Tax (FCFA)Quarterly Payment (FCFA)
Below 500,00020,0005,000
500,001 – 5,000,00050,00012,500
5,000,001 – 10,000,000100,00025,000
10,000,001 – 20,000,000200,00050,000
20,000,001 – 30,000,000500,000125,000
30,000,001 – 50,000,0002,000,000500,000

Quarterly Payment Schedule

Businesses under the comprehensive tax regime must pay their tax in four installments per year, no later than 15 days after the end of each quarter:

  • Q1: January – March (Payment due by April 15)
  • Q2: April – June (Payment due by July 15)
  • Q3: July – September (Payment due by October 15)
  • Q4: October – December (Payment due by January 15 of the following year)

Who Benefits from This Tax System?

  • Small businesses with turnover below 50 million FCFA.
  • Businesses that prefer simplified tax compliance over complex VAT and profit tax declarations.
  • Entrepreneurs who want to avoid frequent tax filings and enjoy predictable tax liabilities.

Advantages of the Comprehensive Tax Rate System

Predictability – Businesses know exactly how much tax they owe annually.
Simplicity – No complex profit calculations, just a fixed tax based on turnover.
Reduced Compliance Burden – No need for monthly VAT or corporate income tax declarations.
Encourages Compliance – Easier tax obligations mean fewer businesses fall into tax default.

Transitioning to the Actual Earnings Tax System

If a business exceeds 50 million FCFA in turnover, it must transition to the actual earnings tax system. This means:

  • Paying VAT and corporate income tax based on actual profit.
  • Monthly tax declarations instead of quarterly payments.
  • The requirement to maintain detailed accounting records.

The comprehensive tax system provides a fair and predictable taxation model for small businesses in Cameroon.

Tax rates are aligned with turnover brackets. This allows taxpayers to do quarterly payments.

Knowing where your business falls in these brackets is essential to staying compliant and managing finances effectively.

For more details, check out:

For tax guidance, visit OpenHub Consulting’s Tax Management Services.


Discover more from OpenHub Digital

Subscribe to get the latest posts sent to your email.

Leave a Reply

Discover more from OpenHub Digital

Subscribe now to keep reading and get access to the full archive.

Continue reading