Last week I shared with you 6 things to take note of when starting a commercial farm in Cameroon. We also saw in previous week investment opportunities in sorghum, maize and cassava production. Farming in Cameroon is mainly for subsistence. Very few farmers are going in for commercial farming. If you own or plan to start an agricultural business in Cameroon, then you are supposed to know what the tax office has or requires from you.
Many are unaware of what the tax administration expects from them. The tax law has provided for a lot of benefit to those who engage in agriculture for commercial purposes. To continue our series on commercial farming in Cameroon, I will share with you these 6 tax tips every agricultural business in Cameroon you should know about.
Read Also: Tips to set up a business in Cameroon
1. Exemption from company tax
Your farming business is exempted from company tax if you are member of a cooperative society. This involves cooperative societies that engage in production, conservation, processing and sales of agricultural and livestock produce. Same thing goes for agricultural and pastoral unions.
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2. Taxable profits from agricultural
This includes profit earned by farmers, smallholders, share-croppers and actual land owners of agricultural undertakings. Under the simplified tax system, the profit is determined by deducting the operating cost for the financial year from the surplus receipts from farming , livestock and other proceeds.
3. Exemption from VAT
Exemption from VAT when you purchase some major farm inputs like fertilizers, pesticides, stock breeding and fisheries equipment or materials. Get in touch with us for the list of materials and equipment.
4. Registration fees
You will be exempted from paying registration fees on transfer of land used for agriculture, fisheries and stock breeding. Same goes with loans agreements to finance the farming business.
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5. Taxes on wages
Every commercial farmer in Cameroon farming will benefit a waiver from taxes and other contributions on wages paid to seasonal workers.
6. Land tax
A commercial farming company is also exempted from land tax if the property used for agriculture, fisheries and stock breeding belongs to the company. The said property should also be used exclusively for carrying out these activities. However, this excludes the office buildings of the company.
Don’t make the mistake of going into a farm business thinking that is is simple. Simple in the sense that you may know nothing about taxes and benefits for a commercial farm business .
The operation of a farm usually involves many different income sources as well as expenses. If you are not very careful, you can mix-up things which will complicate things when filing in your statistics and tax returns.
What OpenHub Digital can do
If you own a commercial farm business and you are confused about how to manage your business, don’t hesitate to get in touch with us.
If you befitted something out of this post, help us share with others so they can gain something from it also. Don’t forget to subscribe below if you have not yet done so. Meanwhile you should check on the various services we offer for small businesses in Cameroon. Start, run and grow your business in Cameroon with OpenHub Digital.
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