Cameroon

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TAXES - ACCOUNTING

 

 

Corporate tax

Tax rate for resident companies

The Corporate tax rate is 38.5% (35% + 10% of local tax).
In general, the minimum tax payable is 1.1% of annual gross sales.

   
Tax rate on long-term capital gains Capital gains are taxed at the rate of 38.5%.
   
System governing groups of companies and dividends paid by subsidiaries to their parent companies A withholding tax of 16.5% applies to dividends paid to non-residents or residents.
   
Tax rate on branches Branches are taxed in the same way as the other companies.




Income tax

Fiscal year The fiscal year begins on July 1st and ends on June 30th of the next year.
   
Income tax rate Cameroonian residents are taxed on their incomes perceived in Cameroon and abroad. The non-residents are imposed only on their original Cameroonian incomes.
People are considered as residents if they stay more than 183 days in the country and if their main residence is in Cameroon.
Income tax rate schedule 2004:
- From 0 to 2 000 000 : 10 % 
- From 2 000 001 to 3 000 000 :15 % 
- From 3 000 001 to 5 000 000 : 25 % 
- Over 5 000 000 : 35 %
   
Tax deductions or other allowances Some deductions exist, depending on the nature of the income and the scale applied to the incomes of the physical people.



VAT rates

Standard rates 19,25%.
An excise duty to the rate of 25% is applicable to the cigarettes, drinks, cosmetics or products known as of luxury: jewels, precious stones.
   
Reduced rates Many operations are exempted.



Other important taxes


Name of tax
Rate
Business activity tax  
various  


 

Accounting

Introduction
In Africa, there is an uniform act for the Harmonization of the Corporate Law.
This treaty is opened to any State member of the African Unity Organization.
Cameroon is member of the AUO and subjected to standards.


General accounting principles
- At the end of each accounting year, the manager discloses the financial statements synthesis, in compliance with the uniform Act regulations concerning the organization and harmonization of accountings.
-The leader must set up a management report.

Obligations and publications
- An annual report must be published.
- Any modification in the presentation of the financial statements synthesis must be indicated in the annual report and, if possible, in the report of the auditor.
-The accounting documents.

Certification and auditing
The control of accounts is undertaken by auditors.

Professionals and representative organizations
" The Institute of Chartered Accountants of Cameroon ".



Useful links
Government's website
Directory General of taxes
Droit-Afrique.com

Last modified in January 2007
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