The 2025 Finance Law introduces important updates regarding the taxation of professional income and road transport operators in Cameroon. Here’s a breakdown of what’s changed compared to the 2024 General Tax Code, along with practical insights.
1. Professional Income: 5% Installment Deduction
What’s New: The 2025 Finance Law maintains the 5% installment deduction at source for payments made to members of liberal professions (lawyers, consultants, etc.), but it now explicitly includes non-profit organizations (NPOs) on a list to be established by regulation.
Comparison to 2024:
- The 2024 General Tax Code included NPOs in the list of entities responsible for the deduction without further clarification.
- The 2025 law narrows the scope. It requires the list of eligible NPOs to be established by regulation. This ensures better oversight.
Scope of the 5% Installment:
- Applies to fees, commissions, and emoluments paid to members of liberal professions, regardless of their legal form or tax system.
- Still applies to occasional and non-occasional services paid to natural and legal persons under the simplified tax system or discharge tax regime.
2. Road Transport Operators: Simplification in Payment
What’s New: Section 93 of the 2025 Finance Law deletes the requirement for road transport operators to use a tax payment card to fulfill their quarterly tax obligations.
Comparison to 2024:
- In the 2024 General Tax Code, road transport operators were required to pay their taxes within 15 days of the end of each quarter using a card displaying their name and address.
- The removal of this requirement in 2025 simplifies the process and reduces administrative hurdles for transport operators.
3. What Does This Mean for Professionals and Operators?
For Liberal Professionals:
- The 5% withholding tax deduction continues to apply uniformly, with further clarity on which NPOs are eligible to deduct this tax.
- Key Action Point: Stay informed about the forthcoming regulation defining the eligible NPOs and ensure compliance.
For Road Transport Operators:
- Eliminating the card necessity simplifies the quarterly tax payment process.
- Key Action Point: Make sure taxes are paid within 15 days after the end of each quarter to avoid penalties.
4. Practical Example for Professionals
A legal consultant earns 1,000,000 CFA francs for services provided to a private company.
- 5% Deduction: The company withholds 50,000 CFA francs and remits it to the tax office.
- Net Payment to Consultant: 950,000 CFA francs.
The consultant can use the withholding certificate as proof of advance tax payment during their annual tax filing.
5. Benefits of the Updates
- For Professionals: The regulation on eligible NPOs adds clarity, reducing disputes about withholding responsibilities.
- For Transport Operators: Simplified tax payment procedures save time and reduce administrative costs.
Read Also
- Real Estate Income Tax in Cameroon: Key Updates in the 2025 Finance Law
- How the 2025 Finance Law Impacts Tax for Music Artists in Cameroon
- Tax Deductions on Securities Income in Cameroon – 2025 Finance Law
Get Help Navigating These Changes
Managing taxes doesn’t have to be complicated. At OpenHub Consulting, we offer Small Business Tax Management Services to help you stay compliant. Learn more here.
Stay Updated
Download the 2024 General Tax Code of Cameroon for reference here and keep track of upcoming regulations.
Have questions or need assistance? Leave a comment below or contact us for personalized advice. Let’s simplify tax compliance for you!
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