What Happens When You Fail to File Monthly Return in Cameroon?

The date put in place by the Tax Department in Cameroon to file monthly return is on or before the 15^th of the month for the previous month. Failure to file monthly return can be subject to penalties and other punitive measures put in place by the tax authorities. Check out the penalty for carrying out an illegal or prohibited activity in Cameroon.

What the tax law says

According to the Tax Law, taxpayers that are up-to-date in terms of filing and payment shall be entered in the active taxpayers’ register. This register can be accessed online by companies and individuals who want to deal with your company. Verify if a taxpayer is in the active taxpayer register.

Failure to file monthly return

If the taxpayer fails to file monthly return for a period of three consecutive months, their names shall be automatically removed from the register. This can only be reinserted again after the taxpayer regularizes his or her tax situation.

Once a taxpayer’s name is not in the active taxpayers’ list, they may not be able to carry out import transactions. In this case, you need to be an active taxpayer before you can carry out import activities. Checkout this beginner’s guide to start an import business in Cameroon.

Lessons to take home

• Make sure you file monthly tax return on time – this must be done on or before the 15^th of every month for the previous month. This concerns only taxpayers in the simplified and actual earnings tax regimes. Checkout a review of the Cameroon tax system.
• Make sure you have a registered business – you need to have a registered business in order to carry out any economic activity with the territory of Cameroon. After registration, you need a business licence to carry out activities and pay your taxes. See how to register a startup in Cameroon. Need help to register or incorporate your business? Get in touch now!
• You need a taxpayer identification number – for you to file monthly return, you need a taxpayer identification number or the unique identification number. It is a fourteen (14) alphanumeric code used to track taxpayers by the tax administration and also the administration of tax laws. You can see how to obtain a taxpayer identification number in Cameroon online. If you want us to obtain a taxpayer identification number for your business or you, follow this link now.

Checkout 8 common taxes in Cameroon you need to know about.

How to avoid a failure to file monthly return penalty

– Make sure you file monthly return on or before the 15^th of every month for the previous month.

– Ensure you suspend activities in case you’re not carrying out any. I have seen cases where taxpayers have failed to file monthly return because they say they are not carry out activities. Before you stop filing, make sure you have formally suspended your activities at your tax center.

– Apply for an extension with the chief of your tax center – once you know you won’t be able to file monthly return, make sure you inform the tax administration. This will help the taxpayer avoid the penalty imposed on those who don’t file monthly taxes.

Note should be taken that the extension only allows you more time to file monthly return. It does not cancel out the taxes you owe. Also, failure to file monthly returns after the extension deadline may allow the tax administrator to place on you the same penalty you want to avoid.

We want to hear from you, so we are encouraging lively discussions among our audience. Don’t hesitate to leave a comment below. Let’s keep it clean and simple – no spam links.