Every business liable to corporate tax needs to prepare their accounts for the fiscal year. As for Cameroon, the fiscal year begins on January 1 and ends on December 31. Taxpayers liable to corporate tax are obliged to put together paperwork for their end of year reporting.

Those liable for corporate tax in Cameroon include:

Limited liablity companies, joint stock companies, corporative societies, public establishments, civil companies, sole-proprietorships (XAF10+ million turnover), partnerships that have opted for company tax, regional and local authorities and microfinance institutions.

Read Also: Follow-up Unpaid Invoices – Year-end Accounting

Annual reports are required

As for limited liability companies, annual reporting is a legal requirement in Cameroon. If you are liable to corporate tax in Cameroon, at the end of the fiscal year, you must send certain information to the tax administration.

Profits liable to corporate tax is determined with regards to profits earned on transactions carried out within Cameroon. This means:

• Businesses that have their headquarter in Cameroon or have an effective management office in Cameroon.
• Businesses that have been permanently established in Cameroon and
• Organisations that have a dependent representative in Cameroon.

Year-end Tips:

Start preparing for your year-end accounts

Separate business expenses from personal

Year-end Accounting – Make Sure You Record All Business Expenses

Taxable profit determination

Putting together all the paperwork and information needed is a legal requirement to ensure that companies and individuals who have opted for corporate tax pay the right amount of tax. It also provides to the public, shareholders, banks and potential investors the right information about the business.

Taxable profit is determined after deduction of all expenses directly involved in the activities of the business that are subject to assessment in Cameroon. This includes Overheads, Rental expenditure, Insurance premiums, Gifts, acts of liberality, and subsidies, Taxes, charges & fines and others.

Important paperwork

Don’t forget you need to back up your accounts with the necessary paperwork for every invoice, receipt, bill, etc. Also remember in Cameroon, accounting documents are valid for up to 10 years. Below are some of the paperwork needed backup records:

• Invoices, bills and receipts (see required components of an invoice in Cameroon)
• Income records
• Bank statements
• Suppliers’ statement of account

You need to put together all tax paperworks (e.g. monthly tax declarations) and other documents necessary during the year-end tax assessment. This may serve as backup document in case your financial reporting is challenged.

Taxpayers liable to corporate tax in Cameroon are expected to declare revenue during the period that serves as tax base on or before March 15 yearly. The declaration must be in conformity with the rules and regulations put in place by the Foundation for a Unified Business Law in Africa, FUBLA (OHADA Accounting System).

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