PAYMENT OF COMPANY TAX IN CAMEROON

The company tax shall be paid on the initiative of the taxpayer not later than the 15th of the following month, in accordance with the terms below:

1. For persons subject to the actual earnings tax system, one installment representing 2% of turnover realized each month shall be paid no later than the 15^th day of the following month. Such installment shall be increased by 10% as levy for additional council tax;
2. For production companies falling under the regulated profit margin, one instalment representing 2% of turnover realized after 50% abatement. Such instalment shall be increased by 10% as levy for additional council tax. They are companies in the following sectors:

• milling sector;
• pharmaceutical sector;
• fertilizer sector.   

3. For distribution companies under the regulated profit margin, one instalment representing 14% of gross margin shall be paid not later than the 15^th of the following month. The instalment shall be increased by 10% as levy for additional council tax.They are companies that distribute:

• Petroleum products and cooking gas;
• Milling products;
• Pharmaceutical products;
• Press products;
• Fertilizers. 

4. For persons subject to the simplified system, one installment representing 5% of turnover realized during each month, and paid not later than the 15^th day of the following month. Such installment shall be increased by 10% for additional council tax.
5. For companies not registered in a taxation center, the instalment rate shall be 10%. This rate shall be increased to 20% for forestry companies where, in addition, they do not provide evidence of possessing a logging permit duly issued by the competent authority.
6. The installment referred to above shall be deducted at source by the public accountants and persons of equivalent status during the settlement of bills paid by the budget of the State, regional and local authorities, public administrative establishments, public or semi-public corporations as well as private sector enterprises, the list of which shall be established by regulation.

Notwithstanding the provisions of section 21 (1) of the tax code, the rate of the deduction representing the company tax instalment shall be fixed at 5% increased by 10% for additional council tax, irrespective of the tax system of the service provider for invoices relating to public procurement amounting to less than CFA five million francs.

For forestry companies, it shall be deducted at source during payment of undressed or sawn timber purchase invoice

The tax deducted shall be paid to the Collector of Taxes under the same conditions as taxes payable spontaneously.

3. The following shall be subject to advance payment:

• Imports by traders, including those under the flat-rate tax,
• purchases from industrialists, importers and lumbermen;
• The purchase of oil products by service station operators and commodities by exporters;
• The operations carried out by enterprises without a tax-payer’s card.

The following shall not be subject to a withholding tax:

• Imports by taxpayers under the specialized management units of the Directorate General of Taxation;
• Purchases made by the State, councils and persons residing abroad from industrialists, farmers, importers, wholesalers, semi-wholesalers, logging companies;
• Purchases made by registered industrialists subject to actual earnings System for exploitations;
• Local purchase of petroleum products by marketers registered in the active taxpayer logbook of the department in charge of major enterprises;
• Purchases made by non-profit organizations;
• Retail purchases from importers-distributors.

The advance payment rate shall be:

• 14% on the gross margin for the purchase of goods with regulated prices referred to in paragraph 1.c above;
• 10% of the amount of transactions, for taxpayers not registered with a taxation center;
• 10% of the amount of transactions, for taxpayers subject to the flat rate tax system and engaged in import activities;

Purchases made by non-professionals directly from industrialists or in bulk from importers who are not distributors, shall be deemed to have been made for resale purposes. As such, they shall be subject to advance payment on purchase at a rate of 10%.

• 5% of the amount of transactions carried out, for traders falling under the simplified tax system as well as by taxpayers falling under the discharge tax system;
• 2% of the amount of transactions, for traders subject to the actual earnings tax system;

The advance payment basis for imports shall be the customs valuation of goods. Deduction shall be levied as follows:

• As to what concerns importation, related to the customs services, it respects the same criteria as the customs duties;
• In the other cases, by the supplier or buyer of in-bond goods, they must make such advance payment within the first fifteen (15) days of the month following the date in which the transaction was carried out.

The advance payment or prepayment is not recoverable on the price. It shall be calculated without adding the council tax.

For persons subject to the company tax or personal income tax, the sum deducted in advance as down payment shall represent an installment of the monthly or quarterly installments.

4. Excess payments shall be deducted from subsequent down payments. In case of cessation of activities, they shall be reimbursed.