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Tax Payment methods in Cameroon

tax payment methods

Today, we will see the various tax payment methods in Cameroon. In two days time, that’s Wednesday, July 15, 2020, it will be the deadline to file your tax return for the month of June 2020. Failure to do it on time may call for a late payment notification and penalty. You can declare your tax online now to avoid getting a penalty.

All taxpayers are required to pay their declared taxes and tax deducted at source on or before the due dates fixed by the law. Let’s first see what tax deducted at source is before we go to the various tax payment methods in Cameroon?

What’s Tax Deducted at Source (TDS)

Tax deducted at source is when a company or payer deducts tax on behalf of the tax administration before paying the balance to the payee. The payer (company or individual), is legally liable to collect and pay the tax on behalf of the payer.

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The company or person legally liable to deduct and pay the TDS is called a deductor while the person or company receiving the income after deduction is called the deductee. Examples of incomes where TDS is applied include:

  • Wages and salaries
  • Payment of commissions (middleman commission)
  • Rent payments
  • Professional fees
  • Consultation fees

Tax payment methods in Cameroon

In Cameroon, the following tax payment methods are available for taxpayers:

  • Over-the-counter payment – you can pay your tax in cash at your tax center and the counters of financial institutions (banks). However, at your tax center the amount must be less than XAF100,000 (one hundred thousand francs).
  • Certified check – The taxpayer can use a certified check for sums greater than or equal to XAF100,000 (one hundred thousand francs).
  • Bank transfer – Taxes can be paid by automatic bank transfer from the taxpayer’s bank account. All taxpayers under the specialized management unit (Large Tax Department & Taxation Centers for Medium-Sized Enterprises) are obliged to use this method for paying their taxes. See the requirements to open a business bank account for in Cameroon.
  • Electronic transfers – There are some taxes like the property tax that can be paid using mobile money. You can also pay online using the Internet Banking System.

You may be liable to pay a late payment fine if you fail to pay your tax on time. See the post I wrote on what happens when you fail to your tax return on time in Cameroon.

You can get in touch now!

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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.

 

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Kermann Lobga Derick
Kermann Lobga Derick
Content Writer / Blogger | Small Business Coach | Branding Expert | Entrepreneur| Dad Kermann Lobga is a copywriter, results-oriented digital marketing professional and an entrepreneur with more than 14 years of experience.

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