Tax Declaration

TAX DECLARATION IN CAMEROON: 2 QUICK GUIDES

DECLARING TAXES IN CAMEROON

Tax declaration system requires taxpayers to declare their income and how much taxes they have paid. On the one hand, declaration procedure in Cameroon can be done manually at the level of small tax units before the 15th of every month. On the other hand, declaring taxes in Cameroon can also be done online, on or before the 15th of every month, via the payment platform FISCALIS for taxpayers of the large tax unit, medium-size unit, and specialized tax centre.

To secure revenues and harmonize tax procedure In Cameroon, the Minister of Finance, in December 2020, prohibited the payment of taxes and duties in cash to the fiscal network. But, a good number of taxpayers still face difficulties declaring taxes online. This is the reason why some taxpayers still prefer to take stands at tax offices to declare their taxes.

TAX DECLARATION PROCEDURE IN CAMEROON

Declaring taxes in Cameroon requires that the taxpayer or his tax representative submit the following documents at the Tax office for evaluation and monthly tax declaration;

  1. Tax payers’ card
  2. Attestation of non-indebtedness

Upon a satisfactory check of the above-mentioned documents by the tax inspector, an assessment of the monthly declaration shall be done and duly signed by the chief of taxation and a monthly declaration document issued after confirmation of online payment.

RENEWAL OF TAX DOCUMENTS

A taxpayer must understand that the attestation of non-indebtedness which also serves as a business license has a validity period of three months. A lot of taxpayers have misconstrued the 3-month tax exoneration period to mean they are free from paying which is not true. Taxpayers are still expected to declare taxes monthly and, in a case, where they have not started the business, the declaration for that month should state Nil. It is recommended to declare a nil monthly revenue than to abandon the mandatory declaration process on the premise that the company has not started operations.

The attestation of non -indebtedness must be renewed every after 3 months to remain valid and useful for bank account creation and signing of contracts. The non indebtedness attestation is issued authomatically if the company is up to date with her tax records without any penalties. We have discussed elaborately in our lates published article on corporate compliance in Cameroon business environment.

PENALTIES FOR NON-DECLARATION

Non declaring taxes is a violation of the general tax code in Cameroon making it a criminal matter sanction by the penal code law in Cameroon. The criminal penalty for non declaration or compliance ranges from 1 to 5 years imprisonment and a fine of 500 000 to 5 million francs or one of these two penalties for anyone who by intent:

  1. expressly refuses to file his declaration within the prescribed time-frame
  2. organises his insolvency or puts an obstacle to the collection of taxes
  3. fails to make or ensure the making of entries
  4. keeps inaccurate or fictitious accounts
  5. establishes a false and misleading inaccurate balance-sheets
  6. organises or attempts to organise collective refusal to pay taxes

                                          CONCLUSION

In the event of recurrence, the above penalties shall be doubled and the offender is liable to an additional penalty such as prohibition from the right to exercise any industrial, commercial or liberal profession, directly or by an intermediary as well as administrative and monetary sanctions. Tax declaration is not the only post incorporation compliance requirement , companies should ensure their business licenses are renewed yearly.

Article by MAFANY victor NGANDO

Kinsmen Advocates Law Firm

“The content of this article is intended to provide a general guide to the subject matter. Specialist advise should be sought about your specific circumstance”.