Market Fees And Leasing Contracts For Traders In Cameroon
In Cameroon, as outlined in the General Tax Code, market fees are collected from traders and vendors who occupy spaces in markets. These fees are imposed by municipal councils and serve as a source of revenue for the local government.
The regulations regarding market fees apply to both regular traders who have a permanent place in the market and occasional vendors without a fixed location.
1. Fixed Fees for Regular Traders:
Regular traders in Cameroon, who occupy a permanent shop or stand in the market, are required to pay fixed monthly fees.
The specific amount of these fees is determined by the municipal council and may vary based on factors such as the size of the premises, the location of the market, and the specialization of the market.
The rates for fixed fees are typically calculated based on the surface area occupied by the trader.
2. Leasing Contracts for Permanent Shops or Stands:
Traders in Cameroon who occupy permanent shops or stands in markets are usually required to sign a leasing contract with the municipal council.
This contract serves as a formal agreement between the trader and the council, outlining the terms and conditions of the lease.
The contract must include important information such as the trader’s identity, the market’s location, the surface area of the premises, the monthly fee, the duration of the lease, and the type of business being conducted.
3. Prohibition on Subleasing:
It is important to note that subletting of council shops or stands in Cameroon is strictly prohibited.
Traders who have leased a shop or stand from the council cannot sublet the space to another party.
Engaging in subleasing can result in penalties, including a fine of 200% of the fees due, as well as potential administrative sanctions and legal proceedings.
4. Rates of Lease for Council Shops:
The rates of lease for council shops in Cameroon’s markets are often tiered based on the surface area of the premises.
The fees increase as the size of the shop or stand increases. Here is an example of a rate structure based on surface area:
- up to 4 m2: from 5,000 to 10,000 CFAF per month;
- from 4.01 m2 to 6 m2 : from 10,000 to 15,000 CFAF per month;
- from 6.01 m2 to 8 m2 : from 15,000 to 20,000 CFAF per month;
- from 8.01 m2 to 10 m2: from 20,000 to 25,000 CFAF per month;
- from 10.01 m2 to 12 m2: from 25,000 to 30,000 CFAF per month;
- from 12.01 m2 to 14 m2: from 30,000 to 35,000 CFAF per month;
- from 14.01 m2 to 16 m2: from 35,000 to 40,000 CFAF per month;
- from 16.01 m2 to 18 m2: from 40,000 to 45,000 CFAF per month;
- from 18.01 m2 to 20 m2: from 45,000 to 50,000 CFAF per month;
- from 20.01 m2 to 22 m2: from 50,000 to 55,000 CFAF per month;
- from 22.01 m2 to 24 m2: from 55,001 to 60,000 CFAF per month;
- more than 24 m2: from 60,001 to 70 ,000 CFAF per month.
5. Consequences of Non-Payment:
In Cameroon, failure to pay the rent for a shop after a 15-day notification can result in the shop being placed under seal, as stipulated by the regulations.
The seals can only be removed after the payment of a penalty, which is typically 5,000 CFAF in addition to the overdue amounts.
Traders in Cameroon must familiarize themselves with and adhere to the regulations regarding market fees and leasing contracts.
Compliance with these rules ensures a fair and organized trading environment within the market and contributes to the overall functioning of the local economy.
Daily Market Fees
According to Section C 84 of the regulations, occasional vendors and traders without a permanent place in the market are required to pay a daily market fee. The specific amount of this fee is determined by the municipal council and typically ranges between 100 and 500 CFA francs per vendor. It is important for traders to comply with this requirement to avoid any legal consequences.
Failure to pay the daily market fee can result in the confiscation of the trader’s goods. In order to have the goods restored, the trader must pay a penalty in addition to the fee that is normally due. This penalty serves as a deterrent to ensure timely payment of the market fee.
Prohibition of Selling Goods on Pavements and Public Spaces
Section C 85 of the regulations clearly states that the sale of goods on pavements and other public spaces outside of designated marketplaces is strictly prohibited. If a trader is found occupying such spaces, the competent council can impose a penalty ranging between 5,000 and 10,000 CFA francs per day. Failure to pay this penalty or vacate the pavement can result in the impoundment of the trader’s goods.
Collection of Shop Rents and Ticket Sales Proceeds
Under Section C 86, the collection of shop rents and proceeds from the sale of tickets is overseen by an intermediate revenue officer. This officer issues a receipt from a secured counterfoil booklet, which indicates the printed facial value equal to a term of the monthly rent or cost of the ticket. The total amount collected is then required to be paid into the account of the municipal revenue collector within 24 hours, upon presentation of a collection order by the competent municipal authority.
Compliance with these regulations regarding market fees and leasing contracts is crucial for traders in Cameroon’s markets. By adhering to these rules, traders can contribute to a fair and well-organized trading environment, ensuring the smooth operation of market activities.
OpenHub Consulting Ltd
OpenHub Consulting offers comprehensive services to support your business’s needs. From bookkeeping and tax declaration to company incorporation, our expert team is here to assist you.
With our customized small business accounting solutions, you can trust that your financial records are accurate and up-to-date.
We also specialize in tax declaration services, ensuring that your business remains compliant with tax laws.
And when it comes to company incorporation, we streamline the process, guiding you through each step with precision. Visit openhubconsulting.com to learn more about how our services can benefit your business.
You can get in touch now!
Email: firstname.lastname@example.org | Tel: +237 699 421 947 | WhatsApp | Telegram
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.