How Private Educational Institutions Are Taxed in Cameroon

Private educational institutions play a crucial role in Cameroon, complementing the government’s efforts to give quality education.

Recognizing their importance, the Cameroonian government has established a tax framework that offers significant support to these institutions. This article explains how these institutions are taxed in Cameroon, highlighting the various exemptions and obligations they face.

The Role of Private Education

In Cameroon, private education is considered a public service provided by private partners. These institutions run at various levels, including nursery, primary, secondary, technical, vocational, and teacher training.

The government, along with local authorities, supports these institutions to make sure that education is accessible to all, which in turn contributes to the nation’s economic growth.

Services Offered by Educational Institutions

Private educational institutions in Cameroon give a wide range of services, including:

• Pre-Nursery or Kindergarten: Early childhood education that prepares young children for future learning.
• Nursery and Primary Education: Foundational education that is critical to a child’s development.
• Secondary and High School Education: General and technical education that prepares students for higher education or vocational careers.
• Higher Education and Professional Training: Advanced learning in universities and professional institutions.
• Specialized and Vocational Training: Focused training in specific trades or skills.
• Other Educational and Support Services: More services like tutoring and extracurricular activities.

Tax Exemptions for Private Education

To support their mission, the Cameroonian government has granted several tax exemptions to private educational institutions:

• Exemption from Business License Tax: Approved private educational institutions are not need to pay the business license tax, allowing them to allocate more resources to educational activities.
• Property Tax Waiver: Institutions that fully own and use buildings for their educational activities are exempt from paying property tax on these buildings.
• Exemption from Company Tax: Private educational institutions that do not run for profit are exempt from paying company tax. This exemption acknowledges the public service they give.

Tax Obligations for Private Educational Institutions

Despite these exemptions, private educational institutions in Cameroon still have certain tax obligations:

• Personal Income Tax: These institutions must deduct and remit personal income tax from their employees’ salaries.
• Property Income Tax: If an institution rents property for its activities, it must deduct and pay property income tax on behalf of the property owner.

Incentives for Non-Profit Educational Institutions

Non-profit educational institutions, including those run by religious organizations, get more tax benefits:

• Value Added Tax (VAT): Although exempt from direct taxes, these institutions must pay VAT on goods and services they buy for their operations.
• Tax on Commercial Activities: If a non-profit institution engages in commercial activities, like running a school canteen, it must pay a preferential income tax rate of 15%, plus a 10% council tax. These institutions must also keep separate accounts for their commercial activities and file regular tax returns.

Government Support

The Cameroonian government plays an important role in supporting private educational institutions by providing tax exemptions and ensuring compliance with tax laws. To help from these exemptions, institutions must be approved by the relevant authorities and meet all tax filing and accounting requirements. This support framework helps private educational institutions focus on their educational mission while contributing to national development.

The tax framework is designed to support their important role in society. By offering significant tax exemptions, the government enables these institutions to run effectively, ensuring that they can continue to give vital educational services to the public.

Photo Credit: Paul Bonafide Eferianor