Last week I was conversing with one of my young cousins who just left the university and got a small job around town. In our discussion, he mentioned his salary which is 60,000fcfa. He told me he doesn’t even receive the complete amount as taxes are deducted. I was baffled! Either the employer is ignorant or is exploiting him. Cameroon has a minimum taxable wage if you didn’t know
So what is the minimum wage to file taxes in Cameroon? Let me ask this question in other words – how much do you have to make in Cameroon as a wage earner to file taxes? I can’t tell why my cousin’s employer had to deduct taxes from his income – but following the tax code, he is not supposed to do that.
In Cameroon, the tax paid by wage earners in both the public and private sector are deducted at source by the employer each time they want to pay their workers. This amount deducted has to be paid at the taxation office of the employer’s establishment no later than the 15th of the following month.
The amount of income you need to earn before you file in your tax returns in Cameroon depends on your income type, age and filing status. The government has put in place a minimum wage whereby employers are not supposed to deduct tax.
According to the general tax code of Cameroon, employers are not allowed to deduct tax payable by employees who earn less than 62,000 francs (less than $105) per month (below 744,000fcfa or $1,254 a year)
Income earned from wages, salaries, allowances, pensions, emoluments, profits earned by insurance agents, life annuities, traveling salesmen representatives are liable to personal income tax. This happens if and only if the activity is carried out within the national borders of Cameroon.
The personal income tax calculation for wages in Cameroon is subject to international conventions. It is calculated using the following scale on net salaries, wages, pensions and annuities:
|0 francs cfa||2,000,000 francs cfa||10%|
|2,000,001 francs cfa||3,000,000 francs cfa||15%|
|3,000,001 francs cfa||5,000,000 francs cfa||25%|
|5,000,000 francs cfa||and above||35%|
However, this should not be confused with the social insurance contribution which has to be deducted. As of 2016, the government of Cameroon, through presidential degree laid down social contribution rates.
It should be noted that the minimum wage whereby calculations for social insurance contribution is don is 36.270 francs cfa. Meanwhile the maximum monthly earnings that is used to calculate the social insurance contribution is 750,000 francs cfa per month.
The monthly rate used in calculating the contribution is 8.4%. The insured person covers 4.2% while the employer covers 4.2% also. The government does not take part in the coverage.
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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.