Company tax assessment period in Cameroon
The taxable income as well as the income tax in Cameroon are determined based on the income from the preceding year. For example, the income earned during the 2021 financial year will be taxed in 2022.
In the above case, the year of assessment for 2021 financial year is in 2022 and the taxable period is 2021.
Income tax assessment period
In Cameroon, the basis period is 12 months and in line with the calendar year. This means, the fiscal year begins on January 1st and ends on December 31st.
The company tax is assessed on profits realized within the 12-month period. However, there’s an exception to this rule when it comes to tax assessment period in Cameroon.
Businesses that are registered or start their activities within the last six months to the closing of the fiscal year may come up with their first balance sheet at the end of the following financial year.
In this case, the successive balance sheets drawn up is added together for assessment in the following financial year.
Recommended Read: Failure to file a tax return in Cameroon
The accounting period for corporate tax is the time covered by the company statistical and tax returns.
Statistical and tax returns in Cameroon are usually due on March 15 of the following year for the previous financial year.
The tax year or tax period refers to the 12-month period covered by the tax return.
Individuals and businesses subscribed to corporate tax are subject to a tax year that begins on January 1 and ends on December 31.
The tax year maybe longer than 12 months in case the business starts activities within the last 6 months to the end of the tax year.
The accounting period in Cameroon is the same as the financial and calendar year.
The financial year is the year in which income is earned, and the assessment year is the year the income is assessed for statistical and tax returns filing and taxes paid.
Any confusion on the year of assessment may lead to untimely delay in filing your tax return. This will lead to penalties from the tax administration.
- Recommended Read: What happens if you fail to file the statistical & tax return on time?
How can we help you?
We can help you prepare the tax computation and file in your statistical and tax returns to the tax administration within the right year of assessment.
We can assist you to file your monthly advance tax on time and in accordance with demands from the legislator.
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This content has been prepared for information purposes only. It is not intended to provide, and should not be relied on for, tax, accounting or legal advice. You need to consult your own tax, accounting or legal advisors before engaging in any transaction.