Should a business entity deduct gifts or donations on their income tax return?
Almost all of us love to give and receive gifts. This is because we enjoy making people feel happy. What many are unaware of, is that gifts and taxes don’t go along well.
Tax-deductible gifts, donations or works of charity are contributions in cash or kind made by corporations to government-recognized institutions such as research bodies in agriculture, health and animal husbandry.
Tax-deductible gifts and acts of liberality can reduce the taxable income for the fiscal year.
Let’s see what the Cameroon General Tax Code says about the gifts and donations when it comes to deductions to obtain the taxable income.
Anyhow, that’s now our business for now even though we can use it as a lesson. I will share with you what the Cameroon tax code says when it comes to gifts, subsidies and acts of liberality.
According to the General Code of Cameroon, these expenses are non-deductible from profits, though with some exceptions. Below are some of the exceptions:
As concerns donations or gifts during disasters (natural and man-made), the sums donated shall be deducted following the conditions put in place by the Minister of Finance.