Big changes are here for taxes in 2025, and if you’re a small business owner in Cameroon, this is for you! The government has adjusted how some types of income are taxed in the 2025 Finance Law. Let’s break it down with simple examples and tips to help you stay on top of your game.
1. Cash Payments Over 100,000 CFA Francs are Taxable
If your business makes payments of 100,000 CFA francs or more in cash, those payments will now count as taxable income. For example:
Scenario: You’re a boutique owner who buys bulk inventory for 120,000 CFA francs in cash. Under the 2025 Finance Law, this transaction could be taxed as distributed income.
What You Can Do: Switch to digital payments like mobile money or bank transfers. This not only helps with compliance but also makes record-keeping easier.
Tool to Help: Streamline your payments and invoicing with our Kola Business Manager POS app. Learn more here.
2. New Rules for Property Income
If you earn income from renting or selling property, listen up! The law now includes profits made by shareholders of real estate partnerships under taxable property income.
Scenario: You’re part of a family that owns rental property and splits the profits. Even if you’re not registered as a company, your share of the profits will now be taxed.
What You Can Do: Consider forming a company to manage properties, which may reduce your overall tax burden.
Related Service: Need help setting up a company? Check out our Company Formation Services here.
3. Digital Platforms and Non-Commercial Income
Do you sell online or work as a freelancer? The government now taxes income from digital platforms and non-commercial activities.
Scenario: You sell handmade bags through social media or a website. The money you make is now considered taxable income, even if you’re not a registered business.
What You Can Do:
- Track your sales and expenses properly.
- Declare this income to avoid penalties.
Pro Tip: Enroll in our training on Excel for Small Business Management to simplify your record-keeping. Check it out here.
4. Benefits for Digital Payments
The law discourages cash transactions by disallowing them as deductible expenses for payments above 100,000 CFA francs.
Why This Matters: If you’re a salon owner and you pay your suppliers in cash, you could lose out on tax benefits. Use mobile money or bank transfers to stay compliant and keep your business records neat.
How These Changes Can Help You Grow
- Switch to Digital Payments: Easier compliance and better record-keeping.
- Consider Forming a Company: It can simplify taxes for property or shared businesses.
- Learn to Track Finances: Tools like Excel or POS systems make it easier to stay organized.
Need Help? Managing taxes can be tricky, but you don’t have to do it alone. We offer Small Business Tax Management Services to ensure you stay compliant while focusing on growing your business. Learn more here.
Stay Ahead
These changes are designed to encourage transparency and digitalization. Take small steps today to protect your business and set it up for long-term success.
Let’s make tax compliance simpler for your business. Have questions? Drop a comment below or contact us for personalized advice.
Discover more from OpenHub Digital
Subscribe to get the latest posts sent to your email.