Many small businesses in the informal sector in Cameroon fall under the discharge tax system. Most often taxpayers call it Impôt libératoire (in French) or Global Tax. The discharge tax is paid by those who are engaged in commercial, industrial handicraft or agro-pastoral activities that do not fall under the actual earnings, simplified tax or basic tax regimes exclusive of the payment of business license, personal income tax and VAT.
The annual turn-over of the taxpayer should be less than 10 million francs CFA. Note should be taken that moral persons are not treated under the discharge tax regime no matter their turn-over.
The discharge tax rate shall be established by the regional and local authorities who benefit from the proceeds of the tax. The tax is determined by category of activities as follows:
Category |
Turnover | Range |
A |
turn-over less than 2 500 000fcfa |
0 to 20 000fcfa |
B |
Turnover between 2 500 000 to 5 000 000 |
20 001 to 40 000fcfa |
C |
Turnover between 5 000 000 to 7 500 000 |
40 001 to 50 000fcfa |
D |
Turnover between 7 500 000 to 10 000 000 |
50 001 to 100 000fcfa |
In addition to producers, traders and service providers that fall under category D, the following are also involved:
The discharge tax rate for transporters have been fixed based on specific thresholds:
Category |
Range |
A |
0 to 10 000fcfa |
B |
10 001 to 20 000fcfa |
C |
20 001 to 25 000fcfa |
D |
25 001 to 50 000fcfa |
The discharge tax has to be declared and paid within 15 days after the end of each trimester. It is paid per council, per establishment and per the different activities in the case where there are many activities carried on in the same business place.
In the case of hawkers and mobile vendors who may have to move from one council to another, they shall not be held taxable in a council area for the same activity provided that they show proof of payment in the council of their residence.
This is also applied to commercial bike riders in big cities. However, in certain local councils or municipalities, commercial bike riders are not allowed to carry out business activities outside their councils. If they do, they are charged by the local council for a daily ticket.
Is your business not mentioned in the above categories? Download to view the entire list of activities liable to discharge tax.
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