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.
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 500,000 | 20,000 | 5,000 |
500,001 – 5,000,000 | 50,000 | 12,500 |
5,000,001 – 10,000,000 | 100,000 | 25,000 |
10,000,001 – 20,000,000 | 200,000 | 50,000 |
20,000,001 – 30,000,000 | 500,000 | 125,000 |
30,000,001 – 50,000,000 | 2,000,000 | 500,000 |
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:
- Introduction to the Comprehensive Tax Regime in Cameroon
- Understanding the Transition from Lump-Sum Tax to Comprehensive Tax
- Comprehensive Tax Eligibility: Are You Liable?
For tax guidance, visit OpenHub Consulting’s Tax Management Services.
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