COURSE TITLE: ADVANCED TAXATION AND STR

PROGRAM: PROFESSIONAL MASTERS DEGREE

FACILITATOR: NGOE DIONI

TIME:MONDAY; 5:00PM-9:00PM

HALL: MB03

COURSE DESCRIPTION

This course is introduced at the masters level for students of accounting and
audit for better mastery of tax law in Cameroon. It will cover other aspects of
taxation in Cameroon as well as the preparation of the statistical and tax return
document for declaration. This course is designed to permit students master the
procedures and principles underlying the computation of the various types of
income tax and the relevance of taxation and fiscal policy issues. The course
would also equip students with the techniques of tax management.

COURSE OBJECTIVES

Develop the sense of taxation amongst students by permitting them to

master the general rules relative to the modalities of imposition defined in the
Taxation Code inspired by financial laws. This course will therefore inculcate
the knowledge and now-how that is passed though lectures and practical
synthesis works.
Precisely, The aim of this course is to;

 Give an in depth knowledge of the principles and laws of taxation of

Cameroon
 Know the taxation linked to local exploitation
 Teach students how to prepare the tax return document

EXPECTED OUTCOME
The acquisition of general knowledge and techniques of Taxation; basic notions
of tax management.At the end of this course, students should be able to;

- Calculate annual forestry taxes, felling tax etc

- Master tax laws in Cameroon
- Make tax declaration via the STR

COURSE CONTENT AND BREAKDOWN:

This course will be divided into two parts and each part will be made of two
chapters.

General introduction:

- Definition of a tax
- Forms of public taxation
- The Cameroonian tax law(GTC)
- Classification of Taxes
- Distinction between Taxes and Other Levies
- Purposes of Taxation
- Characteristics of taxation
- Principles of Taxation
- Tax System, Tax Policy, Tax Laws
- Sources of Cameroonian Tax Law

Chapter 1: Public state taxation

- Definition of state taxation

- Forms of state taxation
- Principles of state taxation
- Actors involved in state taxation
Chapter 2: The Presentation of STR (local and State)

- Definition of STR
- Sections of the STR: state taxes concerned
- Structure of the STR
- Practical illustration

Chapter 3: Local Public Taxation

- Definition
- Forms of LPT
- Principles of LPT

Chapter 4: Forestry Taxation

- Definition
- Forms of forestry taxes
- Calculation of forestry taxes
- Accounting recordings
- Illustrations

GENERAL INTRODUCTION:

In every country, there are certain services which the government must provide
to the citizens because of their essential nature. The services are essential that,
even where individuals are allowed to provide them, they are not allowed to
monopolize their supplies or production, so as to ensure their even supply and
distribution. The contributions made by individuals and corporate entities in
form of taxes, fees and levies therefore serve as the main source of revenue to
the government for the supply of these essential services.

0.1. Definition of a tax

 A tax is a monetary and obligatory contribution put at the expense of the
physical or moral person in function of their contributive capacity without a
direct compensation or counterpart, in view of covering public spending and
realizing socio-economic objectives fixed by the state or public authorities.
Tax may also be defined as a compulsory contribution made by individuals and
corporate entities for the purpose of financing the expenditure of the
government. Taxation is therefore the process of levying and collection of tax
from taxable persons.

Some explanations
A tax is not the price of a precise service rendered by the collectivity to the tax
payers. The deduction of taxes is therefore done without any direct
compensation because the tax payer does not decide on how the money paid is
to be used. Also, he cannot refuse to perform his fiscal obligations for the
reason that the tax will finance expenditures that are contrary to his principles.
0.2. Some characteristics of a Tax
Three (3) fundamental characteristics can be distinguished:
 It is a forceful deduction levied by the state: This characteristic is
linked to the legitimacy of the public authority and the principle of tax consent;
 It is a deduction without direct compensation: Which is distinguished
between para-fiscal rate (redevance) which is a claim or demand in
compensation of a public service rendered and which is proportionate to the
amount of service; and duties (taxe) which in principle remunerates services
though without a proportionality linked with the service rendered.
 It has a definite character: i.e. tax payers hall never been reimboursed
the amount they have paid.
0.3. Classification of Taxes

There are several bases used in the classification of taxes. However, we shall
recognize three broad classifications as follows:
(i) Classification based on Tax base;
(ii) Classification based on Incidence; and
(iii) Classification based on Tax rate.

 Classification Based on Tax Base

A Tax base is the object or item on which tax is collected. This could be
income, capital, consumption etc. Within the context of the Nigerian Tax Laws,
three (3) bases are identifiable. These are:
1) Income: These are taxes levied on the income of Individual and
companies. In Nigeria, the common classifications are: Personal Income
Tax, Companies Income Tax and Petroleum Profit Tax.
2) Capital: These are taxes levied on asset. The asset could be human or
other forms of assets. The Nigerian Tax Law recognizes two forms of
Capital taxation i.e. Capital Gains Tax and Capital Transfer Tax.
However, the Federal Government of Nigeria has through the 1996
budget abrogated the Capital Transfer Tax.
3) Consumption: These are taxes levied on goods and services. The most
common forms of consumption tax in Nigeria are the Value Added Tax,
Excise Duties and Customs duties.

 Classification Based on Incidence of Tax

An incidence of tax is the impact of tax on the person who pays tax to the
Government.
Under this classification of tax, two forms of taxes are evident.

1) Direct Taxes: These are taxes collected directly from the income of
individuals and companies whose incidence and burden is on the
individuals or the companies that paid the tax to the Government.
 Examples are Personal Income Tax, Company Income Tax, Petroleum
Profit Tax, Capital Gains Tax, etc.
2) Indirect Taxes: These are taxes imposed on the value of goods and
services, produced and consumed within the country, imported into the
country or exported to other countries, whose burden can be shifted in
part or in full by the taxpayer who has paid the tax to the government to
the final consumers who do not even know either when they pay the tax
or the exact amount of the tax they pay. Examples are Value Added Tax,
entertainment tax, import duties, export duties, excise duties, etc. Indirect
taxes paid by a company usually reflect in the selling price of the goods
and Services to be payable by the consumers, depending on the nature of
elasticity of demand of the product and other factors.

1.3.3 Classification Based on Tax Rate

A Tax rate is the portion of tax base paid as tax. Under this classification, the
following can be identified.
1) Progressive Tax: This is a tax which increases as the tax base (i.e.
income or stock of wealth being tax) increases. It is commonly found in
income taxation and the aim is to achieve equitable distribution of tax
burden. For example Mr. A earns N20,000 taxable income and pays 10%
as tax (i.e. N,2000) and Mr. B earns a taxable income of N80,000 and
pays 20% as tax (i.e. 16,000). In this situation, income tax is progressive,
as the tax rate has direct relationship with the tax base (i.e. they change in
the same direction).
2) Proportional Tax: This is a tax that remains fixed regardless of change
in the tax base. In proportional tax, all tax payers, both the rich and the
poor are made to pay the same percentage of their income as tax. For
example Mr. A earns N20,000 taxable income and pays 10% as tax (i.e.
N,2000) and Mr. B earns a taxable income of N80,000 and pays 10% as
 tax (i.e. 8,000). In this case, the rich pays more than the poor in absolute
terms, even thought the tax rate is fixed percentage of the tax base.
3) Regressive Tax: This is the tax which decreases as the tax base (i.e.
income or stock of wealth being tax) increases. For example Mr. A earns
N20,000 taxable income and pays 10% as tax (i.e. N,2000) and Mr. B
earns a taxable income of N15,000 and pays 20% as tax (i.e. 3,000). This
tax system is usually imposed as punishment for non-performance in
situation where the government created an enabling business environment
but the citizens are inherently lazy.

0.4 Distinction between Tax and Other Levies

There are other payments which resemble tax but are not tax. These payments
are:
1. Fees: This is a levy imposed with the aim of reducing the cost of each
recurrent service undertaken by the Government in public interest but
conferring a significant advantage on the fee payer. E.g. registration fees,
court fees, school fees, etc.
2. Licenses: This is a charge by Government to grant permission to a person
for the performance of a service. E.g. motor vehicle license fees,
broadcasting license fees, business registration fees, etc.
3. Fines: This is a levy imposed as a punishment for breach of law with a
view to ensuring future adherence.

However, all these levies above are similar to tax because they are compulsory
payments and they also serve as a source of income to the Government, but
differ from tax in the sense that taxes are not levied in return for any specific
service rendered by the Government to the taxpayer.

0.5 Purposes of Taxation

Government imposes tax for a number of reasons, which include but not limited
to the following:
1. Revenue Generation: Government imposed tax to serve as a source of
income which can be used in order to finance the construction of schools,
building of roads, bridges, hospitals and markets, provision of pipe-borne
water, provision of social, health and educational facilities, provision for
defense and protection of lives and properties and provision of funds for
the day-to-day running of government (namely salaries and wages,
insurance premium, fueling of cars and generators, maintenance of
buildings, electricity and telephone charges, etc).
2. Income Re-Distribution: Tax is an important instrument used by the
government income re-distribution. Tax is normally charged at a
progressive rate to take resources away from those who have more than
they need for good living to provide for those who need more than they
have for minimum sustenance. Through the income generated by the
government, most of which come from the rich, is used to finance the
supply of social, health and educational facilities and services, just to
mention but a few, most of which is enjoyed more by the poor than the
rich.
3. Economic Stabilization: In periods of cyclical trend in economic
activities, tax serves as a means of reducing or increasing the disposable
income of the consumer, payment of unemployment benefits, supporting
ailing industries, changing the pattern of aggregate demand, aggregate
supply, national income and mopping-up excess liquidly to check
inflation.
4. Discourage the Consumption of harmful goods and services: Tax is
used to discourage the consumption of harmful goods and services. In
doing this, a higher rate of tax is imposed on such goods as tobacco and
alcohol.
 5. Protect Infant Industries: The Government imposes tax on imported
goods in the form of customs duties, in order to make their prices higher
than locally produced items, with a view to protecting infant industries
which are not matured enough to favourably compete with their foreign
counterparts.
6. Prevent Dumping: Tariffs are usually imposed by the Government on
imported goods in order to prevent deliberate attempt by foreign firms to
kill local infant industries with a view to possessing monopoly power in
the supply of certain goods.
7. Correct Unfavourable Balance of Payment: Taxes are imposed on
imported items with a view to discouraging import and encouraging
export so as to correct unfavourable balance of payment. For balance of
payment to be favourable it thus demands that visible and invisible
exports of a country should exceed her visible and invisible import over a
period of time, usually one year.

0.6 Principles of Taxation

These are the rules, qualities, conditions, standards or yardsticks by which the
goodness of a tax system is measured and by which a good tax policy can be
formulated. Adams Smith was noted to have been the first person to mention the
principles of taxation, but he called them cannons of taxation in his book “The
Wealth of Nations” in 1776. Although Adams Smith mentioned only four
principles, scholars that came after him made some generally accepted
additions. Some of these principles include the following:

1. Principle of Equity: This principle states that a good tax system

should be as just as possible by ensuring that all persons who ought to
pay the tax are covered by the tax and that each taxpayer pays exactly
what is just and equitable considering his circumstance and ability.
 There are two types of equity i.e. vertical and horizontal equity.
Vertical equity is the unequal treatment of taxable persons with varied
taxable income. While horizontal equity is the equal treatment of tax
payers with the same taxable income.
2. Principle of Economy: This principle states that the cost of collecting
tax should not be too high so as to outweigh the benefits derivable
from the imposition of tax. For example if it costs a government
N9milliom to collect tax revenue of N10million, the tax system is said
to lack economy.
3. Principle of Certainty: This principle states that the amount to collect
as tax, the time of payment, the mode of payment and the place of
payment must be made clear to the tax payer, so that the tax payer is
not left at the whims and caprice of the tax authorities. In other words,
the taxpayer should be fully informed about taxes to be able to arrive
at a conclusion as to the amount of tax payable by him with reference
to the provision of the tax law, as well as, to preventing him from
being subjected to cheating by unwanted people and dishonest tax
officials.
4. Principle of Convenience: This principle states that tax should be
imposed at a time, in a manner and at a place that the taxpayer is in
position to pay, so that collection of tax would be easy for the tax
administrators. E.g. salary earner should be asked to pay tax when he
receive his salary and not at the middle or the end of the month when
the salary may have been exhausted. This is why the PAYE (Pay-As-
You-Earn) is deducted at source, because it is more convenient than
requiring the taxpayer to pay after collection of salary and a farmer
should be asked to pay tax when he harvest his crops and not when he
is doing the planting or clearing the farm.
 5. Principle of Simplicity: This principle states that a good tax system
and the tax law should be as simple as possible, both in interpretation
and application. This requirement is particularly important in
developing economy where the rate of illiteracy is high and where the
culture of record keeping has not been imbibed by most small scale
entrepreneurs.
6. Principle of Neutrality: This principle states that a good tax system
should neither distort the consumption habit nor the production
decision of a tax payer. In other words, a good tax system should not
interfere with people’s willingness to work, produce, consume, save
and invest.
7. Principle of Efficiency: This principle states that a good tax system
should make it difficult for tax evasion (i.e. should make it difficult
for nonpayment of tax or illegal reduction of one’s tax liability).
8. Flexibility: This principle states that a good tax system and tax law
should be such that it can be easily amended when the need arises,
without unnecessary protocol.

0.7 Tax System, Tax Policy, Tax Laws

 Tax System
The tax system is an embodiments of tax policy, tax laws and tax
administration.

 Tax Policy
Tax policies are general statements of procedure which guide the thinking and
action of all concerned towards the realization of the stated tax objectives. The
tax policies of the Cameroonian Government are to:
 a) pursue a low tax regime which aims at reducing individual tax burden and
thereby encouraging savings and investments;
b) move from the traditional coercive method of taxation to voluntary
compliance;
c) engage in tax payer education through public enlightment;
d) deliberate movement of emphasis from income tax to consumption tax
which is less prone to tax evasion;
e) introduction of self-assessment to encourage tax payers participation in
the tax assessment process which is more realistic in approach and
democratic in nature; and
f) Reducing tax evasion and avoidance using the due process of law and the
mechanism of an efficient tax administration.

 Tax Laws
These are the various legal instruments put in place to ensure the realization of
the tax policy objectives of the Governments. The tax law in Cameroon is found
in the General Tax code (GTC) derived from the annual finance law of the
country.(see GTC 2022).
0.8. Sources of Cameroon Tax Laws
1) Constitution
2) Legislation
3) Court Judgments
4) Circulars and Practices of Inland Revenue Officials
5) Opinion of income tax experts
6) Budgetary pronouncement
0.9.The various tax organs of Cameroon
1. The General Department of Taxation(DGI)
Put under a director general, it is in charge of;
- The elaboration and the execution of legislative text in the domain of
direct and indirect taxes and their adaptation to the evolution of economic and
financial regime;
- The organization and the management of information system for fiscal
usage;
- The control of succession and vacant goods or property;
- The management of confiscated goods;
- Investigating matters or claims of tax payers;
- The preparation of degrees, the homologation of roles if tax burden
reduction and gracious resort or the moderation based on the taxation issued.

2. The general Department of customs (DGD)

Put under the authority of a director general, the department of customs;
 Ensures the application of custom regulations on foreign trade and
exchange, restriction of entry and exists of goods, the suppression of fraud and
proposes measures aimed at adapting the text to the economic evolution
requirements;
 Investigate legal claims and gracious claims of tax payers;
 It assists in watching over territorial frontier and maritime frontiers as
well as rail stations and airports.
CHAPTER 1: PUBLIC STATE TAXATION

In Cameroon, the imposition of taxes, levies and dues as well as their collection
is done by the state and by the local authorities. While some taxes are the
responsibility of the state, in which, when collected, part is transferred to the
council, others are at the responsibility of the local authorities such as regions
and councils, of which part is transferred to the state.This chapter is focused on
state taxes.

1.1.Definition of state taxation

It is the set of taxes which according to the tax code, are soly imposed and
recovered by the central government or the state. Howeve r, when collected, a
certain portion is transferred to the council. This is the case of the additional
council tax of 10% which is applied and recovered during the liquidation of the
personal income tax, the company tax etc.

1.2.Forms of state taxation

They include: the personal income tax, the value added tax, forest exploitation
taxes, corporate tax. They are briefly explained below;

A.PERSONAL INCOME TAX

A tax is established in Cameroon on the income of physical persons which is

based on the net global income (Revenue Global net) realized by the physical
persons. The various categories are;

- Remuneration, salaries, pensions and life annuities (TS);

- Income from mobile capital (RCM)
- Land income (RF);
- Profit from artisanal, industrial and commercial activities (BIC);
 - Profit from agricultural operations (BA);
- Profit from non commercial and assimilated profession (BNC).

The Taxable Persons of PIT are :

Apart from some international conventions and certain exceptions, IRPP is
paid by all physical persons having their fiscal domicile in Cameroon.
Considered as having their fiscal domicile in Cameroon are:
- Persons who have their home or place of principal living in Cameroon;
- Persons exercising remunerated or non remunerated professional activities in
Cameroon, except they can justify that the activity is for the mean time;
- Persons who have the center of their economic interest in Cameroon.
Equally, considered as having their fiscal domicile in Cameroon are:
- Civil servants and state agents excising their functions in a foreign country
and who are not subjected to tax in that country;
- Persons who have their fiscal domicile out of Cameroon are liable to IRPP
for the part of the gains that is realized in Cameroon;
- Also liable to IRPP are persons with Cameroonian or foreign nationality
realizing revenues or profits whose taxation has been attributed to Cameroon
by international conventions relative to the elimination of double taxation;
- The personnel of international organizations and diplomatic missions or
consular who are recruited locally or not and who are not having the quality
of a diplomatic agents as defined by international conventions;
- The partners in limited partnership Companies with dormant partners (SNC)
and the limited partnership Companies with active partners (SCS) who have
not opted for companies’ tax are liable to IRPP for the part of share profit
corresponding to their rights in the company.
- It is the same with members of civil societies, companies with participation
and companies with activities not liable to IS.
 The Exempted persons from PIT are;

- Diplomatic agents and consular agents of foreign nationalities having a

diplomatic cart delivered by the ministry of external relations, but in the
condition that their countries they represent accord the same advantage to
Cameroonian consuls and diplomatic agents;
- The administrative and technical personnel of diplomatic missions,
consular or internationals organizations in the condition that it can be
proven that they are being taxed in their countries of origin;
- The members of the personnel of international organizations that have
diplomatic status, but only in the measure where the convention or accord
enabling their implantation expressly previewed this exemption;
- Physical persons subjected to liberal tax or global.

The Place Of Taxation is based on the following conditions ;

If the tax payer has a unique resident in Cameroon, the tax will be
established in the place of that residence.
If he possesses several residences in Cameroon, he is liable to be taxed at the
resident considered to be principal.
For persons not domiciliated in Cameroon, at their place of principal interest
in Cameroon
For civil servants and state agents, at the head office or service that governs
them.

1.The notion of exceptional revenue

The exceptional character of revenue is determined at the same time by its

nature and its amount at the same time.
By its nature, the exceptional revenue is not susceptible of being collected
annually. They include; indemnities of relief or sack, pre notice or for holiday,
a supplementary gratification perceived by salaried worker for exceptional
services, bonuses for resignation received by salaried workers when they leave
the enterprise without being sacked and for retirement.
By its amount, the exceptional revenue is greater than the net average of the
revenues of the tax payer in the last three years.
Equally considered as exceptional and which satisfy the criteria of the amount
below, recalls, differed revenues which are revenues in which the tax payer due
to circumstances which do not depend on his will, had the intentions during a
year and which does not respect the normal date limit, is carried forward to one
or more future years. This is the case of wages arrears, treatments or pensions
and arrears of housing allowance.
APPLICATION EXERCISE
a)Imposition of deffered revenue
The monthly gross salary found in the pay slip of madame x in the month of
January is 255000FCFA.In addition to this ordinary remuneration, is the sum of
6000,000FCFA which represent salary arrears for the years 2017, 2016 and
2015.For his imposition, she desire that her employer should apply the
dispositions of article 65 of CGI.
SOLUTION
The amount 6million FCFA received by madame x is a deffered revenue
because she obtained it through circumstances that are out of her will and the
normal date of maturity of this revenue was postponed over many years.Also,
the sum of 6 million FCFA is greater than the average of her net revenue
during the three last years of exercise.The exceptional character is established
and the requestor wish to benefit from advantages according to article 65.
 Calculation of IRPP on the ordinary revenue
Gross monthly salary =255000FCFA
Annual gross salary=255000 x 12=3060000FCFA
Standard deduction (abatement) for professional fees (article 34 of CGI ): 30%
X 3060000= 918000
Thus 3060000 – 918000 = 2142000.
CNPS (NSIF) deduction (article 34 of CGI ) : 4.2% X 3060000 = 128520.
Thus 2142000 – 128520 = 2013480.
Complementary deduction of 500 000 (article 29 of CGI) : 2013480 – 500 000
= 1513480
Application of the IRPP barem
From 0 to 2000 000, 10% given 1513480 x 10% = 151348.
The due amount of IRPP of the year after the application of the barem will be :
151348 + 10% of CAC
Given 151348 + 15135 =166 483
There fore the due IRPP of the month of January will be : 166483/12 = 13874.
 Calculation of IRPP on the ordinary revenue increased by a quarter
of the deffered revenue:
That is 3060 000 + (6000 000/4) = 4560 000.
Reduction (abatement) for professional fees : 4560 000 X 30% = 1368 000
Given 4560 000 – 1368 000 = 3192 000.
Deduction of social contribution (CNPS) : 4560 000 X 4.2% = 191520
3192000 – 191520 = 3000 480
Complimentary deduction of 500 000 : 3000 480 – 500 000 = 2500 480
Application of the IRPP barem :
From 0 to 2000 000, 10% given 2000 000 X 10% = 200 000.
From 2000 001 to 3000 000 : 15% ; given 500480 X 15% = 75072
Total IRPP : (200 000 + 75072) + 10% OF CAC ; gives 275072 + 27507 =
302579.

 Determination of the supplementary contribution :

This is done by taking the IRPP of the ordinary revenue increased by the
exceptional revenue less annual ordinary IRPP multiplied by 4, gives (302579 –
166 483) X 4 = 544 384.
 Determination of the due amount of IRPP of the month which serve
as a base of imposition:
The increased supplementary contribution of the tax corresponding to the
ordinary revenue of the month of January 2018 will be : 544 384 + 13874 = 558
258.
Therefore the IRPP to deposit at the public treasury is = 558 258
b) The imposition of the exceptional revenue does not fulfill the conditions
previewed by article 65 of CGI.
In the month of April 2017, M. NJOYA received his ordinary monthly
salary of 157 000 FCFA and an indemnity for holidays of 471 000 FCFA.In the
last three years, he received the following salaries respectively: 1500 000, 1600
000, 1700 000 FCFA.He solicit the benefit of the dispositions of article 65 of
CGI.
In the case of cash, it is not an exceptional revenue since the amount
471000FCFA is less than 1600 000 FCFA which is the average of the net
income of MR. NJOYA during the last three years.Consequently, the
calculation of the tax is done base on the modalities of common law without
applying the allegement (lessening) previewed by article 65 of CGI.
c) Imposition of the exceptional and deffered revenue : In the month of April
2017, Madame Raissa ABEGA received her monthly ordinary salary of 157
000 FCFA and a balance sheet bonus of 2000 000FCFA .In the last three years,
she received the following salaries : 1500 000, 1600 000 and 1700 000
FCFA .She solicited to benefit from the dispositions of article 65.the balance
sheet bonus of 2000 000 FCFA served in a punctual manner by its nature. It is
not susceptible to be given to the beneficiary annually and the amount is more
than the average net revenue that she might have received in the last three years.
Consequently, Madame ABEGA is eligible to the regime of article 65 and her
IRPP has to be liquidated using the same modalities as that in the example
above.
3. The modalities of putting in place the alleged regime of imposition of the
exceptional revenue.

To benefit from the alleged regime of imposition of the exceptional revenue, the
worker must address an application to his employer.
The employer will appreciate the exceptional character of the revenue base on
the criteria above and will then pçroceed with the liquidation following the
précised modalities.
The employer must transmit the elements which served as a base for the
liquidation of IRPP on the exceptional revenue to the centre of taxation in the
form of declaration. They include: the application of the employee, the pay slips
yof the last three years of exercise of activity of the employee, the amount to
deposit as exceptional revenue and a bill of liquidation which is different from
the IRPP of the tax payer concerned.
The set of these elements must be annexed in the declaration of salary
deductions in the month of the payment of the exceptional revenue.
The services will ensure the eligibility of the regime of article 65 and the
conformity of the liquidation done by the said employer based on the elements
declared by the employer. If this is verified, then the employer can proceed with
the regularization of the tax on exceptional revenue.
See other illustrations in class
SEE EXERCISES IN CLASS
B.THE COMPANY TAX
Established in Cameroon is Tax on the set of profit or revenues realized by
companies and other morals persons that are subjected to corporate tax (IS).

The Taxable Persons are;

 Share companies be they unipersonal, limited liability companies,
companies of fact1, public organisms (including state entities benefiting
From a financial autonomy and any other moral person who is carrying
out exploitations or operations with a profitability character.).
 Civil societies amongst others (when they are renting or sub contracting a
part or an entire building that belong to them or that they exploit) (FL
2017)
 Enterprises of persons having opted for company tax(IS)
 Micro finance establishments no matter their juridical forms or nature.
 Businesses owned Public establishments and decentralized territorial
collectivities.

Moral Persons Exempted from company tax are:

 Cooperative companies for production, transformation, conservation and
sales of agricultural, life stocks and their unions functioning in
conformity with the law;
 Agricultural syndicates, pastoral and supply and purchase cooperatives
functioning in conformity with the low;
 Agricultural credit union;
 Association with no lucrative goals;
 Clubs and private organizations for the part of the activity that is non
lucrative;
 Private schools with not profit aim;

1
  Public administrative establishments like hospitals, etc. See Article 4
CGI.
The Rules of Territoriality are ;
The profit that are subjected to IS are determined while taking into account
uniquely the profit that was obtained in enterprises operating or on operations
realized in Cameroon (except international dispositions state otherwise).
Considered to be exploited in Cameroon are:
- Enterprises whose head quarters (siege social) or the place of effective
management is situated in Cameroon;
- Enterprises that have permanent establishments in Cameroon;
- Enterprises having a permanent representative in Cameroon.
The profits of enterprises that do not fulfill these conditions above are taxable in
Cameroon if they are realizing actions that make up a complete commercial
cycle (in Cameroon).
Consequently, an enterprise whose head quarter is in Cameroon is not taxed in
Cameroon for the operations that it effectuates abroad. Similarly, the charges or
losses realized from these operations abroad cannot be deducted from the profit
subjected to taxation in Cameroon.
In the hypothesis of an activity that is jointly exercised in Cameroon and
abroad, the taxable revenue in Cameroon is determine in function of the
revenues and charges corresponding to the activity in Cameroon. If the
spreading of charges is impossible, it will be done with respect to the prorata of
turnover in Cameroon and abroad.
C.THE VALUE ADDED TAX (VAT).NEXT CLASS

VAT is an indirect tax based on expenditure, instituted in Cameroon by the

Finance Law n0 98/009 of 1st July 1998 and entered into force since the 1 st of
January 1999.
Taxable persons of VAT are ;
Taxable under VAT are physical or moral persons, which includes
decentralized Territorial Collectivities and organisms of Public right realizing in
a habitually or occasionally and in an independent way, taxable operations of
VAT.

Remark:
 Tax payers subjected to the simplified regime are totally excluded from
the field of application of VAT. Exception done for operations concluded
with moral persons of public right. This implies that n the framework of
their transactions, they are not supposed to invoice TVA and they
themselves are not supposed to invoice TVA, for operations that they
effectuate which will be considered as hors tax.

Taxable operations are ;

Only operations accomplished in the framework of an economic activity
effectuated on costly titles are subject to VAT. Economic activities include all
the activities of production, importation, the rendering of services and
distribution. These comprise extractive activities, agricultural, agro-industrial,
forestry, artisanal activities and those of liberal and assimilated professions.
Taxable are the following operations:
 The supply of goods and self supply;
 The rendering of services to third parties and self rendering of service;
 The operations of importations of goods;
 Real estate works (les travaux immobiliers);
 The real estate operations of all nature realized by professionals of real
estate (considered as professional of real estate amongst others are people
 who are letting of sub-let their building for habitation purposes or
exploitation (see Article 127 of the CGI)(FL 2017);
 The disposal of tangible fixed assets not found in the list of goods
exempted;
 The sale of second handed articles and equipments by professionals,
 Operations realized by enterprises in accordance with the regime of free
industrial zone;
 The sale of petroleum products imported or produced in Cameroon;
 Lucky games (les jeux de hazard et de divertissement).
 Operations of leasing (credit-bail) with purchase option ;
 Subventiosn having commercial character, no matter the nature, received
by persons subjected due to their taxable activity;
 The return of loan and the abandonment of credit of commercial
character;
 Commissions perceived by travel agencies.

Operations Exempted from VAT are ;

The following operations whenever they are subjected to specific taxations:
 The sale of products from extractive activities;
 Real estate operations (operations immobilieres) of all nature realized by
non-professionals;
 Interest remunerating external borrowings;
 Interest remunerating deposits in credit or financial institutions by non
professionals of the financial sector;
 The transfer of ownership rights (mutation) of real estates and the transfer
of goodwill (fond de commerce) subjected to transfer of ownership tax or
equivalent taxation.
 Operation linked to international trafficking concerning:
 - Boats or navy utilized for a set of industrial and commercial activity in
high sea.
- Boats for rescue and assistants;
- Aircrafts (Aeronefs) and navies for their operations of maintenance and
supplies;
 Importations and sales by the state of fiscal stamps, postal stamps and
stamped papers
 Inter States transit operations and assimilated services;
 School fees perceived normally in the framework of the activities of
schools regularly authorized;
 Goods of basic necessity featuring on the annex of the general code of
taxation, notably: pesticide, fertilizers, meat with the exception of
imported meat, pharmaceutical products and the assimilated as well as the
materials of pharmaceutical industries;
 A consumption bracket said to be social to the profit of household
concerning the following goods:
 10m3 of water per month
 110kw of electricity per month.
See the exhaustive list of article 128 of the general code of taxation.

The territoriality of VAT

Subject to VAT are operations realized in Cameroon even if the domicile or
head office of the Real Bearer (redevable reel) is situated out of the territorial
limits or boundaries of Cameroon.
An operation is said to be realized in Cameroon:
- If it is sales: it is when the sales are done following the conditions of
delivery of goods in Cameroon;
 - If it concerns other operations: it is when the service is rendered, the
rights transferred, the objects rented are used or exploited in Cameroon.

Exceptionally, as to what concerns exclusively inter-CEMAC transports, the

operations are said to be done or realized in Cameroon if the transporter is
domiciliated or has fixed his Headquarters in Cameroon even if the principal
operation is carried out in another member state.
Commissions are said to be received in Cameroon in the occasion of sales of
transport ticket by travelling agencies or enterprises having activities of this
nature irrespective of destination or the mode of transportation or the
headquarters of the Transport enterprise.

The Generating Fact are ;

It is an event which places the operation in the legal condition permitting to be
taxed. In other words it is the event that gives rise to a fiscal debt vis-à-vis the
state. It is constituted by:
- The delivery of goods when it concerns sales, exchange and works
carried out;
- The execution of services and work or work and a service bracket as to
what concerns the rendering of services and real estate work.
- Price reception ( when it concerns other taxable operations;
- The introduction of goods in the territory when it concerns imports;
- The act of mutation or transfer of property when it concerns operations of
real estate;
- The act of usage mutation or the entry into usage when it concerns the
renting of an unset up land or premises not carried out by professionals of
real estate;
- First usage as to what concerns self-delivery.
III. Principles of state taxation
These principles are in line with the budgetary principles.This is because taxes
form part of the state budget on the revenue side.It is clearly stated in the fiscal
regime of the state of 2018.They are the principles of the tax budget.
These principles serve a threefold purpose and are primarily intended as a guide
for budget makers. They are also intended to protect them against any
temptation to weaken or defraud by confining them to the strict rules that apply
to their arbitrary assessments. Lastly, these principles make it possible to
prepare and facilitate subsequent control by providing useful clarity on all
financial transactions.
a)Budgetary annuality (Sec. 375 Fiscal regime)
The budget is voted for a twelve-month period from January 1 to December 31
of the year. However, an additional day is granted from January 1 to January 31
of the year for command operations to close the fiscal year. The provisional
twelfths also proceed from this principle.
b) Budgetary precedence (Sec. 380 Sec. 375 Fiscal regime)
The budget must be voted on and approved before the start of the fiscal year.
(Vote 1) The realization of any income and any expenditure is subject to prior
authorization. By way of derogation, provisional twelfths may exceptionally be
granted by the supervisory authority, after a 15-day formal notice addressed to
the local authority.

c) The unity of the budget (Sec. 376-4 Sec. 375 Fiscal regime)
Apart from special authorizations, all financial operations are traced in a single
document that gives details of revenues according to their origin and
expenditures by economic nature or by area of consumption or activity. The
annexed budget and the off-budget accounts also constitute an amendment to
this principle, as well as the special authorizations for income and expenditure.
d)Budgetary Universality (Sec. 376 Sec. 375 Fiscal regime)
The full amount of revenues expected in a period and the full amount of
expenditures to be made must be included in the budget. Consequently, any
contraction between the expenditures and the local authority’s revenue remains
formally prohibited. The principle of non-allocation of revenues to expenditures
is the corollary of budget universality. However, exceptions may be made to
this principle with respect to resources allocated according to the donor's
intention, leading to the opening of off-budget accounts; this however, should
not compromise the principle of single cash flow. The opening of these off-
budget accounts is subject to the deliberation of the Board approved by the
supervisory authority.

IV. Actors involved in state taxation

These actors include; the ministry of finance, the two directorates of taxation,
the tax inspectors or controllers, the Parliament and the president of the
republic.

The minister of finance: it contributes in making the budget, which

includes tax revenue. Also, as the head of finance in the country, he
approves expenditures and revenues from taxes. According to the 2018
financial regime of the state, he is the sole authorizing officer of
revenues.
The Directorates of taxation: they are; the department of taxes and the
department of customs. They are in charge of implementing the taxation
policies voted by the parliament and approved by the executive. They are
placed under the control of the ministry of finance.
 The Tax inspectors or Controllers: they are the field workers of the tax
departments. They ensure the payment of taxes and ensure that the
conditions of payment are duly respected.
The Parliament: it is in charge of making the tax laws through the finance
laws of the country and putting in place the policies in collaboration with
the ministry of finance.
The President of the Republic: He is the head of the executive. He
approves all decisions and policies put in place in the domain of taxation.

CHAPTER 2: THE STATISTICAL AND TAX RETURN (STR)- (DSF)

2.0. Definition, types, purpose and objectives of STR

As in its French appellation “declaration statistique et fiscale”(DSF), the

STR is the outcome of the closure of accounts of all enterprises that operate
under OHADA. STR or financial statements are a set of tables that contains
information on the situation of the enterprise. These information concerns:
its financial structure, the constituents of its patrimony, the evaluation of its
performance and a measurement of its profitability. It is an annual
declaration of taxes and rates to be paid by the enterprise. It shows the
amount of the various taxes and rates to be paid by the tax payer or to be
received by the state, precisely the company tax and the personal income tax.
It is also helpful to the third parties of the enterprise.

Its of two types; STR of the normal system and STR of the minimum cash
system. They are made of tables for general information, financial statements
with annex documents and tax tables.It must be deposited latest the 15 th
march each year

According to the uniform act of the OHADA law, the objectives of preparing
financial statement or STR is to;
- To give a true and fair view of the operations and situation of the
enterprise
- Permit comparisms in time, space, in the enterprise by enterprises or set
of enterprises among themselves.
- Make decisions by management
- Do analysis in the cases of; take overs, evaluation, mergers, absorptions
or partial contribution of asset.
2.1. Sections or components of the STR

The DSF is made up of many tables based on the accounting system of the
enterprise. The OHADA accounting plan distinguish two types of accounting
systems; the normal system and the alleged (lighter) system.

2.1.1. The Normal system

It is used by all enterprise that practice the OHADA accounting system.

Here, informations are given with more details. These statements permits to
give all details so as to understand the financial information of the enterprise.
They are made of;

- The Balance sheet: it permits to determine the patrimony of the enterprise

at a given time and to compare what it owns and what it owes.

- The result account: it helps to measure the profitability of the enterprise for
a given period called accounting period.

- Financial table of sources and Uses (FITAS): it is a table that explains how
the resources made available to the enterprise were used. It also completes
the analysis of the balance sheet and the result account by determining the
variations in working capital, working capital need and treasury.
 - The Annex statement: it gives better explanation of the information in
figures found in the balance sheet and the result account, for better
understanding.

2.1.2.The Simplified(lighter) system

Here, the enterprise prepares the financial statements or STR according to its
size. Based on article 11 of the OHADA uniform act, this system is used by
enterprises whose tax exclusive turnover is less than 50 000 000cfaf with
less than 20 workers. It contains the same financial statements like the
normal system, but simplified.

2.2. Documents used in the preparation of the DSF (STR)

To prepare the above financial statements, the following documents should be

used.

 The ledger account: it is also called the book of accounts. It contains the
set of accounts used by the enterprise. It is an accounting journal that
permits to know the situation of the enterprise as a whole.
 The Trial balance: it is a document that contains the set of accounts of an
enterprise for a given period. It shows the debit balance or credit balance
of each account of the period.

2.3. How to fill the STR

There are three ways of filling the document:

 By direct typing in the interface provided(not recommended)

 By tele-declaration in the excel sheet(DGI-format) for accounting
systems that are non web based
 By a programing interface if you have a web based accounting system

2.4. How to make online Declaration

It is done through the following steps;

Step1: Go to the web site of the general directorate of taxes by

typing:www.impots.cm

Step 2: go to online-declaration(tele-declaration).

Step 3: enter the login which is your unique identification number as tax
payer(NIU)

Step 4: enter the password: 000000

Step 5: click on connection

Step 6: just on the left in an orange colour, click on synthetic declaration

Step 7: choose the type of declaration

Step8: fill in the taxes to be declared

Step 9: record the declaration

Step 10: click on edit (edition)

Step 11: click on tax notice (determine the mode of payment: transfer, cash,
bank, mobile money)

Step 12: print the declaration document

After tax declaration, the tax payer will then go and make the payment. After
that, he will deposit the tax notice and the payment receipt at the tax centre

2.5. How to get the Unique Identification Number (NIU)

It is the process of registering yourself or business as a tax payer. This identifies

the tax payer and the type of tax which he is to pay. This number is found in a
document called Attestation of immatriculation. Initially, it was obtained in the
tax centre of the tax payer. Today, the tax authorities have make it possible for a
tax payer to register and get this number through online.It is important to note
here that, the tax payer equally need this number when he desire to open and
operate a bank account so that his transactions will be taxed. It is an innovation
of the tax administration.The number can be obtained freely online on the site:
www.impots.cm.

It can be done with a computer with connection or even with your phone. The
following steps could be used;

Step 1:type www.impots.cm

Step 2: click online registration

Step 3: fill the form that will be provided

Step 4: At the end click register and a document will be sent to your email
which you will print.

NB: it is advisable to do this very late in the evening or very early in the
morning due to network disturbances.

2.6.The Structure of the STR

The statistical and tax return document is presented as follows in a summary

after retreatments of the various tables;

-STR for company tax

BALANCE OF AMO
NET PROFIT OR NET ACCOUNTING LIN UNT
LOSS BEFORE PROFIT BEFORE TAX E
TAX ON PROFIT
REINSTATEMENT NET ACCOUNTING PROFIT 1
OF EXPENSES BEFORE TAX
NET ACCOUNTING LOSS 2 -
AND LOSSES BEFORE TAX
NOT OR Non deductible depreciation 3 -
PARTIALLY Depreciation recorded, but deferred 4 -
DEDUCTIBLE because of losses
FROM THE TAX Non deductible impairment loss 5
POINT OF VIEW Exaggerated interest on 6
shareholders current account
Head office expenses and technical 7
assistance
Non deductible taxes 8 -
Non deductible fines and penalties 9
Non deductible gratuities and 10 -
donations
Taxes deducted at source on 11 -
income from securities
Sundry 1: unjustified mission 12
allowance
Sundry 2: exaggerated purchase 13
commission
Sundry 3: rents and other 14
expenses(840 000+118500)
REINSTATEMENTS 15
Intermediate taxable profit 16
Intermediate taxable loss 17
EXPENSES OR Depreciation formerly defered 18
LOSSES, Previously taxed impairment loss 19
REVENUES OR reinstated
PROFIT Fraction of non taxable capital 20
DEDUCTIBLE gains from asset dispose
FROM TH TAX Subsidiary net income 21
POINT OF VIEW Other deductible income from 22
securities
Deductible head office expenses: 23
2.5% x 62410,315<1850 000
Sundry 1: exempted income 24
Sundry 2 25 -
Sundry 3 26 -
TOTAL DEDUCTIONS: sum lines 27
18 to 28

FISCAL PROFIT OF THE YEAR: 28

line 16 to line 27
SITUATION OF FISCAL LOSS OF THE YEAR: 29 -
COMPANY WITH Line 27 –line 16
REGARDS TO Rate Principal
THE MINIMUM tax
TAX 2%
30%
 CHAPTER 3: LOCAL TAXATION

3.0.Introduction
 The revenues from council taxes perceived by the state come from the
contribution of patent, licences, liberal taxes, taxes on landed properties, taxes
from lucky games, mutation rights on buildings, stamps on automobile, forestry
royalties, stamps on advertisement, tax on holidays. Only some of them will be
seen under this chapter.
3.1. CATEGORIES OF LOCAL TAXES
As mentioned above, we will review; business licenses, liquor licenses and
global tax (liberal tax or “impot liberatoire” as in French) which involve some
special treatments. As for the others, the rates are determined by the local
authorities or by the state.
I. CONTRIBUTION OF PATENTS (PATENTES)
Liable to patent are all physical and moral persons of Cameroonian or Foreign
Nationality exercising in common in Cameroon, an economic, commercial or
Industrial activity or any other Profession not included in the exemptions
determined in Art. C11 of the General Code of Taxation (CGI).
Not subjected to the Contributions of Patent are:
- The state
- The Decentralized Territorial Collectivities;
- Public Establishments or corporations, Public enterprises and state
organisms for their activities in terms of Cultural, social, education,
sanitary, sportive or touristic character, irrespective of their situation as
regards VAT;
- Author composers;
- Private schools or Establishments;
- Wage Earners (les salaires) in the exercise of their salaried profession
only;
- Persons liable or subjected to Liberal Tax (Impot liberatorie);
 - And this can be seen in the exhaustive list of Article 11 of the General
Code of Taxation.
NB: New enterprises benefit from an exemption from the contributions of
patent in terms of the first two years of their exploitation operation. This
exemption is granted to new enterprises on a demand carrying the word
“exempted”.

The contribution of PATENT is fixed in function of annual turnover and

declared by the Tax payer. However, as to what concerns inter-urban
transporters of persons and transporters of goods, the patent is determined in
function of the number of seats or the capacity of the car in terms of cargo.
For the sale of petroleum products by exploiters of patrol stations non
proprietor of goods, the patent base is constituted by the amount of margin
made by the seller.
For all commercial activities, when there is no accounting element that
permits the determination of the exact turnover, this is considered as being 10
times the stock observed, evaluated at the selling price. However, the Tax
inspector has the possibility of establishing a patent by comparing the
establishment with similar establishment.

The contribution of patent is liquidated by the application of a rate on the

turnover of the last exercise closed as defined below:
- 0,159% on the turnover of large enterprise for a minimum contribution of
5000 000frs and a maximum of 2,5 billions frs;
- 0,283% on the turnover of medium enterprises for a minimum
contribution of 141 500 frs and a maximum of 4 500 000 frs.
- 0,495% on the turnover of small enterprises, for a minimum contribution
of 50 000 frs and a maximum of 140 000 frs.
NB: The real principal (Reel principal) patent = 80% of the Theoretical
patent.

 The annex rates (taxes) of patent (les taxes annexes a la patentes)

In addition to the Real principal of patent, the following annex rates are due:

a. Audio-visuel rate (la redevance audiovisuelle)

It is equal to one time the principal theoretical patent i.e. 100%

b. Additional centimes or rates to the profit of consular assemblies (les

centimes additionnels percus aux profit des assemblees consulaires)
i.e. Chambers of Commerce and Agriculture: it is equal to 3% of the
principal theoretical patent.
c. Communal Tax (la taxe communale)
It features in the bareme published by the local council.
The tax payer subjected to the contribution of patents is compelled to pay once
the taxes he is subjected:
- Within the two months that follows the end of temporal exemption.
- Within the two months that follow the beginning of the fiscal year, in the
case of the renewal of the patent.

The contribution of patent is declared and liquidated by the person through a

printed form provided by the administration or directly online via the
application tele-declaration.
For enterprises that belongs a specialized management unit, the payment of
patent is done through bank transfer in the account of the competent tax
authorities.
Persons exercising activities subjected to patent are compelled to make
declaration through writing, to the office of taxation or to the Divisional
Officer’s office in the case where the taxation office or department is absent
within the 15 days that follow the kick off of the activity or enterprise. Any
patent should be posted within the establishment.
Any person subjected to the payment of patent (patentable) is compelled to
provide to the fiscal administration at any moment of demand, a valid
attestation of which proofs you do not owe the state (attestation de non
redevance).

- Any tax payer who has not paid his patent in the delay fixed by law above
or furnished within the same delay information necessary for the establishment
of the patent is liable to a penalty of 10% of the amount he was to pay per
month of lateness with maximum of 30%;

- Any tax payer who exercises an activity subjected to patent without the
rights is taxed automatically for the whole year and his contribution is raised by
50% to 100% according to whether his good will is established or not;

- The non settlement of the sum due of patent within the delay précised or
established entails the automatic closing down of the establishment;

II. Liquor LICENSES CONTRIBUTION (LA CONTRIBUTION

DES LICENCES)

Any physical or moral person authorized to supply or deliver in bulk or retail or

manufacturing of alcoholic drinks or non alcoholic drinks is subjected to
license contribution.
Considered to be non alcoholic are:
 - Beers coming from fermentation of “mout” prepared with the help of
malt, barley or rice, form hop and others;
- Cider, soft drinks resulting from the fermentation of apple juice (jus de
pommes) and cold drinks, and in a general manner, all fermented soft
drinks such as citron, pineapple, orange, watermelon, raspberry
pomegranate (grenade), cherry, etc, with the exceptions of wine.

Considered as Alcoholic drinks are all other wines and the drinks apart of those
discussed above.
Not giving rise to the licenses contribution is the sale of mineral water, gaseous
water, aromatic or not, and the sale of non-fermented soft drinks when it is
carried out in establishments distinct from the taxable drinks.
License is personal. It is established in the name of a person who exercises an
activity and can only be served to these persons. It is not therefore transferable.
The renting of license is reputed to be null and of null effect.
In the same establishment exercising several activities, is is not to pay a license
per activity as in patent. Only the license of a higher amount shall be paid.
License contribution is annual; it is due by establishment following the same
rules applicable to patent. The license contribution is due by importers,
producers and bars of alcohol or beers giving rise to license.
The payment of license contribution is independent of that of patent
contributions or liberal tax and the taxation of one does not stop or exempt the
payment of the other. The accumulation of sales of drinks with other trade or
business entails the payment of the license contribution and the patent
contribution or the liberal tax applicable to the second business.

The tariff of licenses contribution has been fixed as follows:

Nature of activity Activities Activities

 subjected to subjected to
patent impot liberatoire
Class Base element Contribution of Amount of
patent liberal tax
1st class Non alcoholic drinks 2 times the amount 1 times the
of patent amount of impot
libertoire
2nd class Alcoholic drinks 4 times the amount 2 times the
of patent amount of impot
libertoire
License is fixed following turnover.
It is also assimilated to sales for the evaluation or turnover in terms of the
license, all trade discount (remise) of drinks giving rise to a license in the case
of commercial transactions, trade by barter, exchange or even gifts or all
reductions destined to personal consumption.
License contribution is calculated and included in the patent document and paid
at the same time with the patent.
All dispositions relative to patent contributions or to liberal tax and touching the
principles, the notion of establishment, subscribe declaration, their verification
and the establishment of taxation is applicable to license contribution.
The sanctions previewed in the domain of patent are equally applicable in the
domain of license.

III. LIBERAL TAX (IMPOT LIBERATOIRE)

Tax payers exercising a commercial, industrial, craftsmanship or agro

pastoral activity, who are neither subjected to the real nor simplified regime of
taxation are subjected to the liberal tax which is excluded from the payment of
patent, PIT and VAT.
Tax payers subjected to the liberal tax system cannot opt for the superior
regime.
Nevertheless, when a tax payer of this system has positive elements that can
permit to obtain a turnover greater than 10 000 000, he will be submitted to
patent, and depending on the case to the real or simplified regime. In this case,
the liberal tax paid constitutes an advance payment to deduct in the contribution
of patent.

The tariffs of liberal tax are fixed by the local territorial collectivities benefiting
from the revenues of this tax, within a range fixed in category of activity as
follow:
Category A From 0 F to 20 000 F
Category B From 20 001 to 40 000F
Category C From 41 001 to 50 000F
Category D From 51 001 to 100 000 F
The council can apply a specific rate within the category of each activity in the
limit of the range provided.
-Belonging to category A are producers, services renders and business men that
realize an annual turnover less than 2 500 000f.
-Belonging to category B are producers, services renders and business men that
realize an annual turnover which is equal or superior to 2 500 000f and less than
5 000 000f
-Belonging to category C are producers, services renders and business men that
realize an annual turnover which is equal or superior to 5 000 000 and less than
7 500 000f.
-Belonging to category D
 - Are producers, services renders and business men that realize an
annual turnover which is equal or superior to 7 500 000f and less than
10 000 000f;
- Exploiters of baby-foot whose number of machines used is inferior to
10;
- Exploiters of flippers an video games whose number of machines is
inferior to 5;
- Exploiters of money machines whose number is inferior to 3.

paid.

IV. LAND TAX ON REAL ESTATE PROPERTIES (Taxe fonciere sur

les propritees immobilieres)
The tax on landed property is payable annually on immovable property, whether
built or not, situated in Cameroon, in the Headquarters of administrative units.
If is situated in urban areas benefiting from urban infrastructure or services as
defined below, the above mentioned immovable property also falls under the tax
on land ownership. Urban infrastructures and services are understood to mean
roads, tarpaulins, water, electricity and / or telephone.
Every person or entity that owns immovable, whether built or not,
including any de facto owner, shall be liable to pay tax on the ownership of
land.
Where an immovable is leased either by long lease, construction lease
or rehabilitated lease, or has been the object of an authorization for temporary
occupation of the public domain constituting a real right, property tax is
established in the name of the leaseholder, the building or rehabilitation lessee
or the holder of the authorization.
The following shall be exempt from tax on landed property:
- The State, decentralized local and regional authorities and public
institutions not having an industrial and commercial character;
- Public and private hospitals and schools;
- religious organizations and cultural or charitable associations declared
to be of public utility in respect of their buildings used for non-profit-making
purposes;
- industrial, agricultural, livestock and fishing enterprises in respect of
their factory-built buildings, hangars or storage warehouses, with the exception
of office buildings erected there;
- international bodies that have signed a headquarters agreement with
Cameroon;
- diplomatic representations, subject to reciprocity;
- clubs, associations or accredited sports organizations, properties
intended for sporting activities and sports facilities; ( L. F. 2013)
- Are also exempt, the land exclusively used for agriculture, breeding
and / or fishing.

The generating event for property tax is the legal right or ownership of
immovable property.
The tax on landed property is due on January 1 of the taxation year. It
must be paid spontaneously by 15 March at the latest, on the declaration of the
debtor or his representative.
The revenue from land tax on real estate is given to the council in with the
building is situated at the rate of 60%.

The tax on land ownership is based on the value of land and buildings as
declared by the landlord.
 In the absence of a declaration or in the event of a reduction, the
administrative value of the immovable determined through administrative
evaluation.
The rate of tax on landed property is fixed at 0.1%.

The declaration of the tax on the land ownership is subscribed and the tax paid
with the Tax Center of the place of situation of the building.
However, for enterprises under a specialized management unit, the declaration
and payment are made to it.

V. TAX ON GAMES OF CHANCE AND ENTERTAINMENT

(Taxe sur les jeux de Hasard et de divertissement)
A tax is levied on the products of games of chance and entertainment for the
benefit of the State and the Commons, whatever the nature of the establishment
which carries them out.
Are liable, every physical or legal person who operates in the national
territory, whether principally or occasionally (accessory), any games which,
under any name whatsoever,
- are based on the expectation of a gain in kind or money likely to be
acquired through fate or otherwise;
- Are intended to provide simple entertainment.

The following games fall within the scope of these provisions: - Games of
chance, such as the ball, the 23, the roulettes, the 30 and 40, the black jack, the
craps and any other game of the same nature;
- "Circle" games such as baccarat, railroad, two-banked baccarat, American
baccarat, baccarat with 2 open-bank tables and any other game of the same
kind;
- Slot machines or apparatus whose operation requires the introduction of a
coin or a token intended or not to give the player the chance of a gain.
- Games organized through the mobile phone.

Provisions specific to casinos

The product of the games consists of:
- For matching games: by the difference between the amount of cash at the end
of the game and the amount of the initial bet;
- For the games of circle: by the integral amount of the kitty (cagnotte).

Other common provisions

The levy (prelevement) base shall be constituted by all the gross products of the
games, including accessory income, in accordance with the elements of a
particular accounting which must be kept by the operator by nature of the game.
The manner of keeping the accounts referred to in paragraph 1 above
shall be specified by regulation.
The levy shall be settled (liquidated) at the rate of 15% applicable on
turnover Realized during a tax period and determined in accordance with article
210 of the GTC.
The tax thus calculated shall be increased by 10% in respect of the
additional centimes collected on the benefit of the council of the place where
the games are operated. It is a deductible expense for determining taxable
income. It shall not be excluded from any other tax provided for in the
specification which lays down the obligations of the operator towards the coucil
in whose territory he carries on business.
Any person subject to the tax is required to subscribe a declaration to the
territorially competent tax department in accordance with the provisions of
article L1 of the Book of Tax Procedures (livre de procedure fiscal).
 Payment of the tax is made within 15 days of the month in which taxable
transactions are carried out using a special form available in the tax department.
In the absence of a head office situated in the national territory, the
person liable for gambling must provide a bank guarantee, the amount of which
shall be fixed by the Minister in charge of Finance.
Control of the levy is provided by the Tax Department. For this purpose,
officials with at least the rank of inspector and duly mandated have free access
to the gaming rooms and can control the receipts at any time during opening
hours.
Any late payment or non-payment of the tax is sanctioned by the
provisions of the Book of Tax Procedures.
If new equipment is put into service during the year, the operator is
obliged to take out a supplementary declaration and to pay the duties within 30
days of the event.
Upon presentation of a receipt, the competent tax department shall issue
for each appliance or machine a sticker corresponding to its category. This
thumbnail must be visible on the machine. Failure to display is punishable by a
fine of 25,000 francs per machine;
The display of a thumbnail of a category lower than that normally
required gives rise to the payment of the additional amount. He shall equally be
punished with a fine equal to 50% of the duties;
The posting of a false vignette duly recognized through writing gives
right to the payment of the real amount. He shall be liable to a fine equal to
twice the aforesaid duty without prejudice to any criminal proceedings which
may be brought against the operator.

Provisions specific to entertainment games and slot machine (machine a

sous)
The profit-making operation of the slot machines and apparatus referred to in
Article 208 of the CGI shall give rise to the payment of an annual non-exclusive
tax on the payment of other taxes, in particular income tax and VAT. It is a
deductible expense for determining taxable income.

The tax shall be assessed in the following manner, irrespective of the tax
regime:
- 1st category = baby foot: 20 000 francs per appliance per year;
- 2nd category = flippers and video games: 40,000 francs per year per device;
- 3rd category = slot machines: 100 000 francs per machine per year.

The amounts are increased by 10% in respect of the pennies collected for the
profit of the Commune of the place of exploitation (i.e. CAC).

Every person subject to the tax is obliged to subscribe between January 1 and
March 31 a declaration to the Tax Department of the place of operation of the
machines; The Service shall pay the duties due;

Payment of the fee shall be made no later than 31 March of the same year.

A title bearing the identification of the appliance is established for each

appliance. This title must be displayed on the corresponding device and must be
mentioned on all remittance declarations.

A fine of 25,000 francs per device is imposed for failure to display.

Late payment and the total or partial default of payment shall be penalized in
accordance with the provisions of the Book of Tax Procedures.
Any change in the operation of machines or machines such as assignment,
Scrapping, transfer, must be reported to the territorially competent Tax
Department within 15 days of the event
Failure to declare is punishable by a fine of 25,000 francs per aircraft.

VI. TOURIST TAX(tax de sejour)

A tourist tax is hereby instituted and based on overnight stays in
accommodation facilities classified or not.
The tourist tax shall be payable by the accommodated persons and collected
by the accommodation facility, namely hotels, motels, inns and furnished
residence cum hotels.
The tourist tax shall be paid monthly at the taxation centre managing the
accommodation facility no later than the 15 th day of the month following that
when the transactions were carried out.
NB1: the Tourist tax rate shall be as follows:
- 5 – star hotels: CFAF 5000 per night
- 4 – star hotles: CFAF 4 000 per night
- 3 – star hotels: CFAF 3 000 per night
- 2 – star hotels: CFAF 2 000 per night
- 1 – star hotels and other unclassified accommodation facilities: CFAF
500 per night
NB2: The tourist tax revenue shall be allocated as follows:
- 80% to the State
- 20% to the council in which the accommodation facility is located.
The procedure for calculating business licenses and liquor licenses

3.3. Special considerations when calculating Patent NB: SEE ALL

ILLUSTRATIONS IN CLASS
CHAPTER 4: FORESTRY TAXATION

Since the beginning of the 1990s, Cameroon has undertaken various

reforms of its forestry sector. This led to the creation in 1992 of the Ministry of
Environment and Forestry (MINEF), today called the Ministry of Environment,
of Nature Conservation and Sustainable Development (MINEPDED). At the
legal level, a new law was promulgated in 1994 (Law No. 94/01 of 21 January
1994 concerning forest, wildlife and fisheries regime). The objectives of this
new policy include not only the conservation of resources, but also the
involvement of local communities in the management and sharing of benefits
derived from the exploitation of forest resources.
As part of the medium-term economic reform program for Cameroon in
1997/98 - 1999/2000, the government has reformed forestry taxation, which
today, is still being reformed. Forestry taxation is one instrument, among others,
at the service of sectoral objectives defined by the Government. This is why it is
important to recall, first of all, the national objectives in forest policy, namely:
• Rational and sustainable management of forest resources;
• An efficient and high value-added processing industry;
• Creation and fair distribution of income.

I. THE PRINCIPAL CHARACTERISTICS OF FOREST TAXATION

Like all companies, those in the forest sector are subject to general taxation, but
with certain specificities that reflect the willingness of the Ministry of Economy
and Finance (MINEFI) to fight the informal sector. Moreover, mining and
processing enterprises are subject to specific taxation applicable to the forestry
sector (as defined in the Forestry Law of 1994). The latter "allows the State, the
owner of the resource, to capture the value of timber as a raw material. Its
structure and weight should be aimed at encouraging the sustainable
management of resources by forestry operators and other stakeholders in
forestry; ensure an equitable distribution of forest revenues between forestry
operators, forest area communities and the State, and boost the competitiveness
of the forestry sector ".

1. Texts and specific fees for the forestry sector

The main taxes and royalties (redevences) specific to the forestry sector are:
- The felling tax intended to combat waste during felling and to help control
the true level of exploitation of the forest;
- Caution;
- Annual forest royalty or area charge (redevance forestiere annuelle ou
redevance de superficie);
- Exit fees for logs (export surcharge);
- Different factory taxes different from exit duty for products discharged and
taxes on logs entering the factory (TEU). (Suppressed by the law of finance
2013).

Note: The annual forestry levy applies to all titles awarded following a call for
tenders (concessions and cutting offers) and is related to the area covered by the
title. The concessions are allocated provisionally for the first three years and
meanwhile the fee is based solely on the minimum price fixed by the Finance
Law (2000/2001, the minimum prices for the cutting were fixed at 2500 FCF /
ha / year and for concessions to 1500 FCFA / he / year).
If the development criteria are met (inventory, drafting of a development
plan ...), a definitive title is granted for 15 years renewable once. The royalty is
then calculated on the basis of the minimum price and the financial offer (as
determined by the beneficiary of the security). The area charge can be
considered as the monetary counterpart of the right of access to the resource. Its
relative weight in the forestry tax system must be related to the duration of the
concessions. The longer the period of concessions granted (and the effective
control of the forest administration against illegal exploitation), the more
legitimate a royalty will be, in so far as it is the counterpart of a visibility in the
long term for the economic operator - to the extent that this long-term guarantee
is felt to be a genuine guarantee by the operator. A high levy is meant to
encourage operators to seek to reduce - by investing in better knowledge of the
resource and in appropriate techniques for locating trees, logging wood,
processing and treatment of waste at all stages of the chain.
Provided that competition is real for concessions, the allocation of this
right of access to the resource through a call for tenders is, of course, a means of
revealing the risk-taking capacity of the operators. The low number of potential
suppliers for certain concessions makes it necessary to establish a realistic floor
price, that is to say which collects a significant part of the forest rent for the
State while taking into account the factor of Based risk management.

2. Institutions involved in forestry taxation

The calculation of the forest tax base and the collection (RFA, TA,
various permits and surtaxes) have long been the responsibility of MINEFI. In
1999, a Forest Revenue Security Program (PSRF) was set up and centralized the
payments and declarations linked to RFA and TA. This inter-institutional
program is coordinated by the Directorate of Taxes at MINEFI. The SGS is
mandated by the Customs Directorate to evaluate export taxes on timber; for
export taxes linked to the factories, the emission is made by the Customs and
the recovery by the Treasury.

3. Legal framework for forestry taxation in Cameroon

Logging is conditional on obtaining approval for the forest explorer
occupation and procedures for the pre-harvest inventory. The fiscal framework
of the wood industry is defined by the following texts;
• The General Code of Taxes, and its various modifications;
• Law No.94 / 01 of 21 January 1994 on forests, wildlife and fisheries;
• Decree No. 95/531 / PM of 23 August 1995 laying down the procedures for
the application of the aforementioned Act;
• The decree no.2001 / 1033 / PM of November 27, 2001 reorganizing the
Program for the Securitization of Forest Receipts (PSRF);
• Decree 2001/1034 / PM of 27 November 2001 laying down the rules
governing the assessment and the methods of collection and control of duties,
fees and charges relating to forestry activities.

4. The tax liability of forestry taxpayers

a. Duty to declare

The declarations are signed with the Forest Revenue Securitization Program
(PSRF), or with the structure in charge of managing "Large Enterprises" for
companies in its portfolio.

- Declaration of the felling Tax (declaration de la taxe d’abattage)

Any holder of an operating title is required during the activity to declare the
monthly production of the logs on the basis of the corresponding log book (DF
10) not later than the 15th of the following month.

- Declaration of the Factory Input Tax

The declaration shall be made monthly by the processor on or before the 15th
day of the following month. It is subscribed on the basis of factory logs tracing
the volume of logs processed or intended for processing.
- The precompt on purchase
An advance payment on purchase at the rate of 5% for companies in the forestry
sector is withheld at source when settling purchasing invoices for logs. It is
increased to 10% for forestry companies not on the list of a tax center and 20%
for those undertakings and not licensed by the competent authority.

b. Payment obligations
The RFA shall be acquitted after the grant of the title by its holder under the
following conditions:
- RFA sales of cut log: total payment within 45 days of notification of the
award or renewal of the operating title;
- RFA on concession: payment in three installments equal to 15 March, 15
June, 15 September;
- The TEU: is paid or withheld at source by the wood processor and transferred
to the PSRF or the Large Companies Division;

- TA (Slaughter Tax): is paid or withheld at the source by the customer for the
logs purchased from third parties and transferred to the PSRF or the
Corporations Division;
- The Precompte on purchase: is deducted at source and transferred to the
PSRF or the Large Companies Division;
- SE (export surcharge); is paid when logs are exported through the Customs
Coroner.
- The tax of regeneration: is paid on the exploitation of the Ebene wood, the
bark of Pygeum and other species.

c. Surety (caution)
- The security is at least equivalent to the RFA due;
- It must be established within 45 days from the date of notification of the
selection for the sale of the cut, or from the first day of the fiscal year for the old
securities, if not sanction by suspension or cancellation.
5. Penalties incurred by offenders
Subject to the provisions of law no.94 / 01 of 20 January 1994 referred
to above, the penalties provided for in the tax and customs legislation shall
apply mutatis mutandis to the assessment, collection and control of forests fees
and charges. Any sanctions may be imposed on the offender, including the
enforcement of the security, penalties of 400% in case of non-payment of
internal forest taxes on timber and logs at the time of export.

II. EVALUATION AND THE RECORDING OF THE DIFFERENT

TAXES

1- Tax of Felling (Taxe d’abattage )

a) General principles
According to article 242 of CGI (NEW 2017), The felling tax shall be
calculated on the basis of the FOB value of undressed timber from all logging
licences, including community and council forests.
The rate shall be 4%.
The tax base is the FOB value of logs from logging titles of any kind. The FOB
value is set every six months by the Administration. The order specifies; the
nature of the gasoline, the FOB value is according to zone, the percentage of the
discount, the base, the rate and the tax per cubic meter.
Failure to pay the felling fee due leads to the suspension of exports from the
exploiter concerned.

b) Recording
The accounts that can be used for recording include:
 4428 – Etat, autres impots et taxes
 6418 – Autre impots et taxes directs
 52 – Banque
  57 – Caisse

Remark: Let V: the volume (in M3) of the felled species; Ta / m3: the
Slaughtering Tax (per m3) entered in the order published by the Administration;
TA = Vx ta / m3
Accounting recording
D : 6418 – Autres impots et taxes directs
C : 4428 – Etats, autres impots et taxes or
C : 52/57 – banque or caisse

Application exercise
Au cours du mois de février 2015, la Compagnie Forestière de l’Est a abattu 10
000 m3 de sapelli en zone 1. L’arrête publie par l’Administration indique que,
pour la période du 1er Janvier au 30 juin 2015, la Taxe d’Abattage par m3
s’élève a 3 229 FCFA.

TAF :
Evaluer et comptabiliser le montant de a Taxe d’Abattage générée par cette
opération effectuée par la Compagnie Forestière de l’Est au cours du mois de
février 2015. La Compagnie Forestière de l’Est réglera cette taxe avant le 15
Mars 2015.

Solution
TA = 10 000 x 3 229 = 32 290 000
D : 6418 – Autres imports et taxes directs
C : 4428 – Etats, Autres impôts et taxes

2. Surety (caution)
 According to article 245 of the CGI, forestry companies must provide a
caution with a bank of first order approved by the Monetary Authority. This
bank guarantee is intended to cover the obligations stipulated in the
specifications and development plans.
The guarantee is constituted in a bank of first order approved by the
Monetary Authority within a period of forty-five (45) days from the date of
notification of its selection for the sale of the cut, or of the agreement of the
Administration for Concessions, or as from the first day of the fiscal year for the
former securities.
Failure to produce the guarantee bond within the time limit will result in
penalties ranging from suspension to withdrawal of title. However, the taxes,
duties and taxes remain due until the decision of the competent authorities. The
amount is equal to one time the value of the annual forestry royalty for the title
concerned. Total or partial releases, as the case may be, shall be pronounced in
proportion to the installments of forest royalties paid. It shall be reconstituted
each year within the same period as from the first day of the relevant financial
year.
However, if the security is partly or wholly consumed during the
financial year, the operator is obliged to reconstitute it within thirty (30) days
from the date of notification of the execution of the guarantee if not the
suspension of the operating title in question will follow. If the guarantee is not
reconstituted within thirty (30) days of the suspension of the security, the
security shall be canceled ex officio.
As of July 1, 2000, all logging titles valid or in the process of being
awarded are subject to the formality of guarantee.
However, exempted from the payment of the deposit subject to the
satisfaction of their tax obligations as evidenced by a discharge issued by the
Director General of Taxes, companies under the specialized management units.
 3. Annual forest royalties (RFA)
According to Article 243 of the CGI, the granting or renewal of the exploitation
title, to forestry companies for the sale of logs or for concessions, generates the
annual forest royalty. The RFA is based on the area of forestry titles of all types,
including logging areas on sites allocated to specific development projects and
consisting of the floor price and the financial supply.
The minimum (floor) price is fixed as follows:
Sales of cut: 2,500 Fcfa / ha
Concessions: 1 000 Fcfa / ha
For concessions, the forestry fee shall be paid in three (3) installments of the
same amount, on the following dates:
- 15 March for the first payment;
- 15 June for the second;
- September 15 for the third.
The proceeds of the annual forestry levy are distributed as follows (M.L.F.
2015):
- State 50%
- Communes 50% therefore:
> Support for recovery: 10% of the 50%, or 5%;
> Centralization at FEICOM: 36% of the 50%, or 18%
> Commissions for locating the forestry title: 54% of the remaining 50%, or
27%
A quarter (6.75%) of the total share of the locality is exclusively allocated to the
development projects carried out by the local populations (MLF 2017).
The share centralized by the FAICOM is distributed to the sub councils and the
communes.

Urban councils are not eligible for the distribution of the annual forest revenue.
 a) Recordings
The accounts that can be used for recording are:
 6412 – patentes, licences et taxes annexes
 52 – banque
 57 – caisse
The recording is as follows:
D: 6412 – Patentes, licences et taxes annexes
C : 52 – Banque or 57 – Caisse

Application Exercise
On the 02nd January 2015, the African wood company received a notice for the
renewal of its annual forest exploitation certificate, of a total cut of 10 000 logs
for sales.In its financial offer,it proposed the sum of 2000Fcfa per log in
addition to the normal rate.
Work required:
Compute and record the amount of annual forestry tax revenue which the
African Wood Company paid by cheque on the 05 January 2015.

Solution
The Annual Forest Royalty (RFA) for the sale of cut is :
RFA = 10 000 x 4 500 = 45 000 000 FCFA
D: 6412 – Patent, licences and other taxes
C : 52 – Bank

4. The regeneration tax

The rate of the regeneration tax on non-line forest products and special products
is fixed as follows:
 - Ebene wood: 100FCFA/kg
- Ecorce de Pygeum (prunus Africana): 25FCFA/kg
- Other products 10FCFA/kg

5. Export overload tax

An export overload is hereby introduced to replace the progressive overload for
the export of certain species of logs under the conditions laid down in the
forestry law.
The rates of the export overload are fixed as follows:
• Ayos 4,000 Fcfa / m3
• First-class promotional species other than Ayos 3,000 Fcfa / m3
• Second class promotional species 1000 Fcfa / m3
Export overload has to be liquidated and paid within the 15 days that follow the
semester in which the exportation was done.
a) Recording
The accounts that can be used for recording are:
 4428 – State, other taxes and rates
 6418 – Other taxes and rates
 52 – bank
 57 – cash
The recoding is as follows:
D : 6418 – other taxes and rates
C: 4428 – state, other taxes and rates or 521 – bank or 571 – cash
Application Exercise
During the first trimester of the year 2016, a forestry company of East exported
100 000 m3 of Ayos wood to France.
Work required:
Calculate and record the amount of exploitation tax obtained from this
operation carried out by the East forestry company during the first trimester of
2015.The company paid by cheque.
Solution
SE = 100 000 x 5 000 = 500 000 000 FCFA
Recording
D : 6418 – exportation tax
C : 52 – Bank
CONCLUSION
No person is allowed to export, processed wood, logs and non-timber forest
products, special and medicinal if he does not provide proof of payment in
advance of:
- Internal forestry taxes, in particular the annual forest fee, the felling tax and
the factory head tax for logs;
- Regeneration tax for non-timber, special and medicinal forest products.

The above mentioned taxes, if they are not paid spontaneously, shall be
increased by a penalty of 400% and recovered where necessary before the
products are exported by collecting undertakings listed by the Minister in
charge of Finance. In all cases, the exploration of the aforementioned products
may be authorized only on presentation of a fiscal discharge duly signed by the
Tax Administration. The undertakings concerned shall be jointly and severally
liable for the payment of the fees due with the debtor of the latter in the case of
illegal exportation.
REMARK:
Up to 31 st December 2017, the exportation of forestry and mining
products as well as the issuing or renewal of mining titles was conditioned by
the issuing of a fiscal pass signed by the director general of taxation
(DGI).From 1st January 2018, the fiscal pass has been replaced by the attestation
of non duty (attestation de non redevance(ANR)).
The ANR is issued to the tax payer with respect to the payment of their
specific tax.ANR is produced in an automatic manner as requjested by the
center of taxation or the general directorate.
ANR is issued to exporters of forestery and mining products as defined in
article 245 of CGI.
Consequently, the exporters of forestry and mining products must produce an
attestation of non duty to the custom administration for export operations and to
the competent ministry delivered by their registered center of taxation.
The financial law of 2018 has instituted the solidarity of payment of tax
between the owners of forestry titles, suppliers of forestry products as well as
enterprises involve in the exploitation and exportation of forestry products.

END OF NOTES