The 2025 Finance Law introduced changes to how personal income tax (PIT) is calculated for different income sources, including tax for music artists and other creative fields. If you’re a music artist in Cameroon, this article breaks it down for you in simple terms with real-world examples.
1. Flat Tax Rates for Music Artists
If you’re earning from live performances, streaming platforms, or royalties, your taxes are now calculated using flat rates. This makes things much simpler.
What’s New:
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- 10% flat rate: Applies to income from:
- Live performances
- Royalties
- Brand deals or sponsorship
- 5% flat rate: For income earned through digital platforms, like YouTube, Spotify, or Apple Music.
Example: Imagine you earned 1,000,000 CFA francs from a concert. Under the new rules, you’ll pay 10% tax, which is 100,000 CFA francs. But if 500,000 CFA francs of that comes from Spotify streams, the tax on that portion is 5%, or 25,000 CFA francs.
Pro Tip: Keep track of your earnings and tax deductions using tools like Excel or a POS system. Learn how with our training on Excel for Small Business Management here.
2. Higher Taxes for Offshore Income
If you’re earning from music streams or royalties paid through platforms in tax haven countries, the tax rate is 30%.
Example: If you receive 1,000,000 CFA francs in royalties from a platform based in a tax haven, your tax would be 30%, or 300,000 CFA francs. This encourages artists to work with platforms that operate in transparent financial systems.
3. Lower Rates for Local Businesses
Artists earning from partnerships with Cameroonian companies whose turnover is 3 billion CFA francs or less enjoy a reduced tax rate of 10% on dividends and sponsorship income.
Example: You’re signed to a local record label with a turnover of 2 billion CFA francs. If they pay you 1,000,000 CFA francs in dividends, you’ll pay 10% tax, or 100,000 CFA francs.
How to Stay Ahead
Managing your taxes as a music artist doesn’t have to be overwhelming. Here’s what you can do:
- Track Your Earnings: Whether it’s concert fees, royalties, or sponsorships, keep a record.
- Leverage Digital Tools: Use apps like Kola Business Manager to manage payments and invoices. Check it out here.
- Understand the Law: Download the 2024 General Tax Code of Cameroon for reference here.
We Can Help!
Taxes can feel like a lot, but you don’t have to figure it out alone. At OpenHub Consulting, we offer Small Business Tax Management Services tailored to your needs. Learn more here.
Got questions or need help with your taxes? Drop a comment below or reach out to us today. Let’s keep your music and business thriving!
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