Once you start your business, one of the most essential thing you need to keep in mind is your tax obligations. I know there are many things that need your attention by the time you start your business. That notwithstanding, paying taxes should be one of your most important preoccupations.
There are substantial penalties to pay including closure if you are not paying taxes. With this in mind, it is necessary for you to know when you have to start paying taxes for your company before you even open your doors – especially for new businesses.
When to start paying taxes
Taxpayers, whether natural or legal persons, statutory or actual are obliged to file in an application for registration with the Tax Authority of the area where the business activity is carried out within 15 (fifteen) working days after the start of activities. A site plan for the business should be attached to the application.
Recommended: How to File Income Taxes for Small Businesses in Cameroon
After registering with the tax authorities, you are issued a taxpayer’s card that is valid for 10 (ten) years. The taxpayer has to inform the Tax Authority 15 (fifteen) working days after any modification affecting the business. It could be:
- change of manager
- cession (ceding the business to another person)
- cessation (closing) of business
- business name change
- modification of business activity
- change of place of business
After registration with the tax authorities, the taxpayer will do a monthly tax declaration on or before the 15th of every month for the previous month. This is for businesses that have a turnover of 10 million and above. Not doing this shall carry a penalty.
The current corporate tax and value-added tax rate in Cameroon is 30% and 17.5%; plus an additional council tax of 10% of the principal, which gives it 33% and 19.25% respectively.
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