Hope you did understand the last post where I shared with you 6 basic tax tips for businesses in Cameroon. That may not be all, but you needed to know. When I was sharing, I specified that # 6 of the tips will surprise many. It’s also necessary for those carrying out freelance services without a registered business. Many established businesses are also unaware of that just like they are unaware when dealing with unregistered forestry companies.
However, not all cases are dealt with as such. The General Tax Code states that company tax is paid on the initiative of the taxpayer. This should be on or before the 15th of the following month. In the case of freelancers and other liberal professions, 5.5% is collected at source and paid on their behalf. It should be noted that the tax rate itself is 5%. There is an additional council tax rate of 10% of the principal. This tax is collected by the tax authorities on behalf of the councils.
Forestry companies are treated differently when they are not registered with the tax office. Others not registered at a tax center pay 10%. In the case of unregistered forestry companies who are not in possession of a logging permit issued by authorities, the rate is increased to 20%.
Are you thinking what I am thinking? That’s some good chunk of your money (if you are concerned) going into state coffers. All these because you have not registered your business in a tax center. Think about it! You loose a lot by not registering your business. You can checkout the advantages of registering your business with the competent authorities. If you think we are good, then get in touch with us now let’s see how to go about it.
They are not registered in any tax center. How do they pay the 20% they are asked to pay? That’s not difficult for the tax authorities. The buyer, if registered collects on behalf of the tax authorities. This means the tax is retained at source by the buyer during payment. This is done for both sawn and undressed timber. The tax deducted at source will be paid to the tax office under same conditions. That is, it will be paid on or before the 15th of the following month.
Don’t forget that the 20% will also carry an additional council tax of 10% of the principal.
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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.