Tax compliance in Cameroon is a very important but time-consuming task. It is the duty of companies registered in the Cameroon business books to pay their taxes and obtain an adequate tax compliance status. The Cameroon tax system encompasses the tax rates in Cameroon and the Cameroon tax regime. This also permits the said company to obtain a certificate for tax compliance and clearance from the appropriate office.
It is therefore important for a company operating within the Cameroon economy to engage a Specialist tax firm. Failure to do so will lead to litigation and penalty.
TAX RATES IN CAMEROON
The tax rates in Cameroon depend on the nature of the tax. The regime of tax compliance in Cameroon respected without a proper understanding of the tax rates in Cameroon. The various tax rates in Cameroon include;
- Corporate tax rate 38.50
- Personal Income tax rate 38.50
- Sales tax rate 19.25
- Social Security rate 20.40 etc
CAMEROON TAX SYSTEM
The Cameroon tax system is made up of two facets to wit; One for individuals and one for entities.
There are two types of individual income tax to wit; i
- Proportional tax
- Progressive overtax
The are two main cartegories of company income tax to wit;
- Proportional tax on income floating capital
- Company income tax.
CAMEROON TAX REGIME
The Cameroon tax regime encompasses the mechanism of tax rates, regulations, and scope, that comprise the taxation approach or philosophy of a government. A proper understanding of the Cameroon tax regime by an investor will ensure a successful tax compliance in Cameroon.
CAMEROON TAX COMPLIANCE STATUS
Filing a tax return correctly and on time as per the prescription of the law can be time-consuming. however, when successfully done will enable the grant of a favourable tax compliance status in Cameroon.
Tax returns from income tax, corporate tax, gift tax, inheritance tax is very important for the tax officer/authorities. This enables them to get the information they need to monitor the tax status of a company. After a successful compliance, they issue a certificate for tax compliance and clearance. They also engage in litigation procedures against defaulters.
CERTIFICATE FOR TAX COMPLIANCE AND CLEARANCE
A certificate for tax compliance and clearance is a document which is issued by the administration as a proof of an up to date status. It is proof that the taxpayer has paid all his taxes. The previous fiscal documents have to be submitted in order to ascertain the present tax status.
TAX COMPLIANCE, GOVERNMENT GRANTS, CONTRACTS AND PERMITS
A certificate for tax compliance and clearance is required by the state for those seeking to benefit from government grants, contracts, permits etc., certifications, attestation, licenses, authorizations, or any accreditation. It can also be requested by organizations or persons who need to verify your tax status to be sure if your tax is in order.
A certificate for tax compliance and clearance in Cameroon has also become a requirement for companies seeking to benefit from loans from a bank or other financial institution.
In conclusion, K&P Firm will help you to operate under a safe tax system in Cameroon. This we guarantee by ensuring your taxes are up to date.
Article by Barr. Agbor Kima Divine NgemaKima & Partners Firm