SIMPLIFICATION OF TAX DECLARATION AND PAYMENT

Transcription

THE WORLD BANK GROUP
********************
CAMEROON
INTERNATIONAL FINANCE CORPORATION
A 96 Rue Flatters
P.O. Box 4616 DOUALA CAMEROON
TEL. 33 42 80 33 / 33 42 94 51
Fax 33 42 80 14
*********************
SIMPLIFICATION OF TAX DECLARATION
AND PAYMENT FORMALITIES
(Contract 7152118)
CEMA – Sarl
Vendor # 111810
P. Box 20 802 Yaoundé (Cameroun)
Tél. (237) 22 20 34 45 / 99 91 53 81
Fax. (237) 22 20 34 45
E-mail : [email protected]
Yaoundé, October 2009
CEMA SARL – October 2009
Simplification of Tax Declaration and Payment Formalities
CONTENTS
Pages
Abbreviations and acronyms…………………………………………………………………………6
Executive summary…………………………………………………………………………………….8
Introduction ……………………………………………………………………………………………..9
Context and justification of study …………………………………………………………………12
Methodological approach …………………………………………………………………………..15
I. Summary description of the Cameroon tax system …………………………………………16
I.1 State taxes ……………………………………………………………………………………….16
I.1.1.Tax on Revenue……………………………………………………………………………16
A. Tax on companies…………………………………………………………………...…16
B. Tax on individual revenue……………………………………………………………..17
C. Special tax on Revenue……………………………………………………………….19
I.1.2.Value Added tax and Accise duties………………………………………………………19
I.1.3. Tax on Capital……………………………………………………………………………...20
A. Tax on landed Property……………………………………………………………….20
B. Registration Duties ……………………………………………………………………..20
C. Tax on gambling and entertainment………………………………………………... 21
D. Axle Tax…………………………………………………………………………………22
E. Stamp Duty……………………………………………………………………………...22
I.2
Local Taxation ………………………………………………………………………………...23
A. Standard rate tax, business and licence……………………………………………..23
B. Additional council centimes…………………………………………………………..23
C. Duties to transfer buildings…………………………………………………………...24
D. Direct Council Taxes…………………………………………………………………..24
E. Indirect council taxes…………………………………………………………………..24
I.3 Specific Taxation ………………………………………………………………………………26
I.3.1. The petroleum sector ……………………………………………………………………..26
I.3.2. The forestry sector ……………………………………………………………………….27
I.3.3 The mining, water and energy sector…………………………………………………….28
I.3.4 The gas sector………………………………………………………………………………29
I.3.5 The fishing sector ………………………………………………………………………….30
I.3.6 The livestock sector………………………………………………………………………..30
I.3.7 The Tourism sector………………………………………………………………………...31
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I.3.8 The Road sector ……………………………………………………………………….......34
I.4 Parafiscal funding………………………………………………………………………...........34
I.4.1 Contribution to Crédit Foncier……………………………………………………….........34
I.4.2 Contribution to National Employment Fund ……………………………………………..34
I.4.3 Audio visual charges……………………………………………………………………….35
I.4.4 The Tax payers‘ card……………………………………………………………………….35
I.4.5 Contribution to National Social Insurance Fund…………………………………………35
I.4.6 Additional Centimes of Consular Chambers…………………………………………….36
I.4.7 The Road Fund……………………………………………………………………………..37
I.4.8 Synthetic guide of the identification of taxes in Cameroon…………………………….38
II. Critical examination of declaration and Payment procedures :
cost and duration ………………………………………………………………………………….43
A.
Creating a company…………………………………………………………………………….44
B.
Formalities in the life of the company…………………………………………………………45
II.1 State Taxes………………………………………………………………………………………45
II.1.1 Tax on Revenue……………………………………………………………………………46
II.1.2 Value Added tax and Accises Duties ……………………………………………………46
II.1.3 Land Tax……………………………………………………………………………………48
II.1.4 Tax on gambling and entertainment……………………………………………………..58
II.2 Local Taxation …………………………………………………………………………….…..60
II.2.1The standard rate tax………………………………………………………………………60
II.2.2 Business tax and Licence…………………………………………………………………61
II.2.3 Additional Council Centimes ……………………………………………………………..63
II.3 Specific taxation ………………………………………………………………………………67
II.4 Parafiscal funding ……………………………………………………………………………..68
II.4.1Contribution to Crédit Foncier………………………………………………………..……68
II.4.2 Contribution to National Employment Fund……………………………………………..70
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II.4.3 Audio visual charges………………………………………………………………………71
III. Simplification proposals………………………………………………………………………….73
III.1 State taxes …………………………………………………………………………………….74
III.1.1 &2 Tax on Revenue……………………………………………………………………….74
III.1. 3 Special tax on Revenue………………………………………………………………….75
III.1.4 Value Added tax and Accise duties……………………………………………………76
III.1.5 Tax on landed property ………………………………………………………………….77
III.1.6 Registration Duties………………………………………………………………………..78
III.1.7 Tax on gambling and entertainment…………………………………………………….82
III.1.8 Axle Tax……………………………………………………………………………………83
III.1.9 Stamp duty…………………………………………………………………………………83
III.2 Local taxation………………………………………………………………………………….84
III.2.10 &11 standard rate, business tax and licence…………………………………………84
III.2. 12 Additional council centimes…………………………………………………………...85
III.2.14, 24 & 25 tax on arms, transhumance tax transit tax…………………………………86
III.2.15, 17, 19 & 21 Slaughter Tax,duties of place,Tax to occupy parks,
Tax on entertainment. ……………………………………………………………………...86
III.2.22 tax on publicity and stamp on publicity ;……………………………………………...88
III.2 13, 18, 20, 23, 26 & 27 – Council tax, duties on building permit, duties for
temporary occupation of public road, Tax on damage done on the road, Duties
on communal stamp, renting of shops in the markets.................................................89
III.3 Specific taxation……………………………………………………………………………….89
III.3.1 The petroleum sector……………………………………………………………………..89
III.3.2 The forestry sector………………………………………………………………………..90
III.3.3 The mining, water and energy sector…………………………………………………...91
III.3.4 The fishing sector…………………………………………………………………………92
III.3.5 The livestock sector………………………………………………………………………92
III.3.6 The tourism sector………………………………………………………………………..93
III.3.7 The road sector………………………………………………………………………….. 94
III.4 Parafiscal funding ……………………………………………………………………………..94
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III.4.1, III.4.2, III.4.3, III.4.6 : Contribution to Crédit Foncier, Contribution
to National Employment Fund, Audio visual charges,
Additional Centimes of Consular Chambers…………………………………………..94
III.4.4 The tax payer‘s card………………………………………………………………………95
III.4.5 Contribution to National Social Insurance Fund……………………………………….95
III.5 General Remark………………………………………………………………………………..96
III.5.1 Exaggerated declaration duties………………………………………………………….96
III.5.2 functioning of tax proceeds………………………………………………………………97
IV. Accompaning devices to the main proposals………………………………………………100
IV.1 The legal device………………………………………………………………………………100
IV.2 The regulatory device……………………………………………………………………….110
Conclusion…………………………………………………………………………………………….114
IV RECOMMENDATIONS TAKEN AFTER THE WORKSHOP ON THE
VALIDATION OF THE STUDY………………………………………………………………………119
Appendices:
Appendix 1 : Report of the study carried out in the Yaoundé
Urban Council………………………………………………………………………..124
Appendix 2 : Declaration and payment system to ……………………………………………...128
Appendix 3 : Functioning of stamp control in the customs‘ headquarters 136……………….131
Appendix 4 :
134
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ABBREVIATIONS AND ACRONYMS
APS : Attestation for submission
ART : Article
BA : Agricuture Profit
BAD : African Development Bank
BAIC :Agriculture Industrial commercial Profits
BE : Issuing Form
BM : World Bank
CAC : Additional Council Centimes
CDI : Department of taxation
CEMAC : Economic and Monetary Community of Central Africa
CFC : Crédit Foncier du Cameroun
CGI : General Code on Taxation
CIME : Taxation Centre for medium-sized Enterprises
CNPS : National Social Insurance Fund
CPE : Cameroon Public Expansion
CR : Rural Council
CRTV : Cameroon Radio Television
CSPLI : Specialized Centre for Real Estate Profession
CU : Urban Council
CUD : Douala Urban Council
CV : Steam Horse
DGI : Taxation Headquarters
DLV : Verbal Declaration of rents
DSA : Social Dimension of Adjustment
DSF : Statistics and Tax Declaration
EX : Example
FCFA : African Franc Financial Community
FEICOM : Special Council Support Fund
FNE : National Employment Fund
FOB : Free on board
GFAC: Group of Cameroonian Business Women
HA : Hectare
HT : Duty Free
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IFU : Single Tax Representative
IRBAIC : Tax on income of industrial handicraft and commercial profits
IRCM : Tax on Revenue of movable capital
IRPP : Tax on individual income
IS : Tax on companies
M : Metre
M² : Square metre
MAETUR : Mission for developing and equipping urban and rural land
MAGZI : Mission to develop industrial zones
MINAT : Ministry of territorial Administration and Decentralization
MINEFOP : Ministry of public service and administrative Reform
MINEPAT: Ministry of Economy, Planning and Regional Development
MINPMEESA: Ministry of Small and medium Economic Social and craft Enterprises
ORD : Ordinnance
PAS : Structural Adjustment program
PM : Prime Minister
RAV : Audio Visual charges
RF : Land Revenue
SIC : Cameroon Housing Company
TF : Land Tax
TSR : Special Tax on Revenue
TTC : All taxes included
VAT : Value Added Tax
UFA : Annual Forestry Unit
YDE : Yaoundé
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EXECUTIVE SUMMARY
The Cameroon tax system does not seem suitable for the growth of business because of
tax pressure that comes in different forms:
-
The weight of the taxes is too much for economic operators ;
-
Tax declaration procedures are long and many which is considered a big waste in
terms of time consecrated to tax formalities.
So, there is a problem of simplification of declaration and payment procedures of taxes,
which this study attempts to solve by making proposals which take into consideration the tax
law in force and the administrative organization in place.
Looking at the Cameroon tax system, we discover a variety of taxes which are sometimes
on the same product or directed towards the same payer. Finally, we are faced with so many
procedures which become difficult for the economic operator. Tax legislation was also examined
and it was noticed that some adjustments should be made to ease tax procedures.
But apart from so many texts, the tax administration is not really certain of itself fo, on the
one hand, there is poor structuring of services and on the other, poor use of available human
resources.
The repartition of tax proceeds between the many beneficiaries also creates a loophole on
the flow of tax payments.
The staff at the department of taxation is also blamed for the complexity in the procedures
and the much decried tax pressure.
Good working conditions and especially the availability of a computer are sadly lacking in
this administration.
Concrete proposals were put forward to review both the legal and regulatory devices, at the
same time attention was drawn on the poor allocation of resources by DGI and the need for
urgent computerization of the whole system; which is of paramount importance in the
simplification of tax formalities.
During the workshop organised for the approval of the above conclusions, emphasis was
laid on certain proposals rather than others. This was done to avoid confusion between the topic
under study and others mainly on tax policy.
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INTRODUCTION
It is traditionally agreed that a good tax system is a financially profitable deduction, socially
equitable, economically incentive and technically simple.
The financial function of taxation is certainly the most apparent in the sense where it is
responsible for bringing in the State budget; that is the traditional function of taxation.
The taxation relationship between the State and tax payers is not just a relationship of
social solidarity to relax social inequality and to compensate for insufficient private investment; it
is a function of social justice which has as objective equal repartition of taxes.
A healthy and favourable tax environment to investors is the dream of every national or
foreign economic operator and an instrument of the harmonious development of the State. The
economic of contemporary taxation is nowadays the most important aspect of the economic
policy of all governments.
Investors think that tax pressure is exacerbated in Cameroon; this pressure is in two forms:
-
it is seen in tax reduction rate,
-
it is also palpable with regard to the time put in by an economic operator to solve
taxation problems, in other words, a tax pressure is considered as waste of time in tax
management..
They are certainly right and the Cameroon administration is aware of it for having set up a
tax reform committee in 2007 with the triple aim of :

evaluating the level of the implementation of the tax and custom reform of 1994 and
2002,

making a diagnosis of the present system

Coming up with proposals to improve on this system drawn from an implementation
calendar.
Decision no. 87/909/CF/CAB/MINEFI of 20 April 2007 gave the committee a mandate to
study and propose to the government the ways and means of improving on the tax system in
order to make it simpler, efficient and equal.
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The committee realizes that suppressing the deduction of VAT at the source, which was
very difficult, and the reduction of the quarterly contribution from 25 million to 10 million to pay
back the VAT loan, are measures to figure on the chapter of organization, modernization of
services and simplification of tax and custom procedures.
Recommendations from the tax reform committee concerning the tax and custom
procedures were clearly expressed and fall in line with the preoccupation of the Cameroon
Business Forum, which, within the framework of this study proposes to go deeper into this
reflection and if need be accelerate it in order to rapidly put it into practice.
In order that these recommendations not become pious wishes, they should be
transformed into concrete reality and become operational so as to enable economic operators
to reduce the cost of taxation. So, it has to do with going from word to action and to propose,
after a critical examination of the prevailing situation, a simple and less costly tax system in time
and money and which should integrate specifically defined orientations by the mission‘s terms
of reference, namely :
-
come up with a single tax declaration support;
-
reduce the formalities to obtain a registration number, business licence etc.
-
reduce the number of tax declaration forms ;
-
synthesize payments in order to facilitate things for tax payers, the State is in charge of
the repartition among the various beneficiaries ;
-
come up with an operation mode adequate to the proposed measures ;
-
evaluate the impact of the proposed measures in terms of time saving and cost for
economic operators ;
-
identify tools and computer appliances that facilitate tax declaration and payment
procedures ;
-
transform all this into a project which should be implemented as soon as it is validated
We can deduce that the general objective of this study is to succeed to put in place a
healthy and favourable tax environment for both national and international investors.
It is due to this ambition that after a succinct description of the present tax system, it is
necessary to analyse declaration and payment procedures in order to propose subsequent
improvement measures;
10
The third part of this study will be consecrated on proposals drawn up at the end of this
study. A fourth and last part will attempt to propose both legal and regulatory accompanying
devices that can support this impetus.
In conclusion, an attempt will also be made to propose modern and efficient measures of
tax payment and define general modern and efficient measures to accompany this much
wanted global objective of simplification and facilitation.
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CONTEXT AND JUSTIFICATION OF STUDY
The International Finance Corporation (IFC- The World Bank Group) carried out a study
on the simplification of tax declaration and payment formalities in Cameroon.
CONTEXT AND JUSTIFICATION
After reaching the completion point of HIPCI initiative, Cameroon relaunched economic
growth, the immediate objective being to reach a 7 to 8% growth rate necessary to meet the
Millennium Development Goal (MDG). Serious studies showed that this economic relaunch is
still dependent on a minimum investment of 25% a year.
Such a level of investment cannot be envisaged in the absence of a favourable and
incentive business environment.
Meanwhile, we deduce from companies and potential investors both at the national and
international level, that the business environment in Cameroon is not suitable for the
development of economic activities. Among the complaints often made, top on the list are the
complexity of the creation of a company, legal and judicial insecurity and tax pressure etc. In
fact, because it is at the centre of the decision to invest and learn more on economic activities,
taxation plays a key role on determining the business climate.
According to the report « Doing Business » and the study carried out by a Netherlands
company (SNV), together with the German Technical Cooperation (GTZ) and GICAM on the
business climate in 2007, Cameroon would not still be attractive enough to investors. In fact, the
majority of companies think that ―tax pressure‖ is a major handicap to the expansion of business
in our country. The same goes for the plurality and complexity of procedures constantly decried
by tax payers.
For example, the study carried out for Doing Business shows that in Cameroon:
- the number of taxes and payments to be made by a medium sized company in a year
is 41 ;
- the time consecrated to carry out tax obligations is about 1,400 hours a year ;
- the cost of all the taxes paid take 51.9% of the company‘s annual profits ;
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- parafiscal funding is galloping, most administrations having instituted taxes under
various names(duties, contributions, charges, fees), besides classical parafiscal taxation
(council taxes, contribution to Crédit Fonciers and to National Employment Fund, audio visual
charges and contribution to CNPS) ;
-
misunderstanding remains between the formal and informal sector ;
- The many controls and doubtful recovery procedures are factors of harassment.
These indicators have as consequence the classification of Cameroon in the 164th
position out of 181 countries as « Taxation to do business ».
The same complaints are made by economic operators, who opt for the modernization of
the tax system especially reducing procedures and reinforcing guarantees given to tax payers,
in the discussions in the enlarged interministerial committee of the private sector CIESP), of the
« Prime Minister Investment Forum » and the committee of competitiveness.
It means there is still a problem despite the numerous enterprise reforms of the last
years. Maybe we should focus more on the simplification of procedures and formalities in order
to reduce, substantially, the cost of taxation.
In fact, the mission envisaged to follow strictly the recommendations from the report of
the 2007 tax Reform Committee made public in December 2007 and transmit to the
government.
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THE MISSION’S OBJECTIVE
General Objectives
The mission‘s objective is to carry out a study on the present tax declaration and payment
procedures in order to propose concrete and operational solutions capable of reducing the cost
of taxes.
This recommended step should lead to the simplification of procedures and formalities in
order to reduce the cost of taxation, especially the time needed for intervention and the cost of
management at the level of economic operators.
In fact, the set objective is one of the priorities of the Cameroon Business Forum, who has
as one of its investment goals the promotion of a healthy tax environment favourable to both
national and international investment.
Specific Objectives
Without limiting the general idea, the field of study focuses on the procedures, the required
administrative support, the treatment chain, payment modalities, the average length of time
taken at each stage and, in a global manner, to the end.
To attain the objective defined above, priority should be given to the following :
- come up with a single tax declaration support;
- reduce the formalities of obtaining a registration number, business licence etc ;
- reduce the number of tax forms ;
- synthesize payments in order to facilitate the task for tax payers, and let the State do the
repartition between the various beneficiaries ;
- come up with an operation mode adequate to the proposed measures;
- evaluate the impact of the proposed measures in terms of time saving and cost reduction
for economic operators ;
- identify the tools to facilitate tax declaration and payment procedures ;
- transform all this into a project to be validated immediately it is implemented.
14
METHODOLOGICAL APPROACH
Our methodology was done in four phases.
1- The descriptive phase
In this phase, we proceed to a summary description of the Cameroon tax system, listing
the various types of taxes in the tax register.
2- Field work
After listing the taxes in the Cameroon tax system, we thought it necessary to carry out
field work in order to identify in the various State owned and private organs, the other taxes
applied in the official or non official parafiscal funding.
3- Critical Analysis
During this phase, we studied the declaration and payment procedure of some taxes in
the sub divisional councils and in some taxation Centres. At the same time we did a critical
examination of the procedures used in various tax declarations the loopholes in them.
4- Proposal
This phase makes concrete proposals to make tax declaration and payment procedures
in Cameroon easier and simple.
15
I – SUMMARY DESCRIPTION OF THE CAMEROON TAX SYSTEM
The Cameroon tax system was organised around a central tax system which we shall call
« State taxation » from a decentralised tax system called a local tax system and from a varied
nuclear tax system called parafiscal funding.
This structuring is not in itself a source of inertia or blockage to the running of business; it is
rather the profusion of taxation and taxes which result from it that makes it difficult to put in
place an economic policy on the tax lever
I.1 State taxes
There are two traditional ways to classify taxes:
- Administrative classification differentiates direct taxes from indirect taxes:

direct taxes are those deducted from an income or an existing capital ;

Indirect taxes are those deducted only during certain operations.
- Economic classification distinguishes three types of taxation to which can be added
specific taxation on the oil, forestry and mining sectors:

tax on revenue, which as the name shows, is on available revenue,

tax on expenditure which is perceived when revenue is spent,

And lastly, tax on capital which is on an already built heritage.
Our exposé will be on the last method of classification in the case where it is clearer and
at the same time distinguishes some ambiguous notions of taxation and tax burden.
I.1.1 Tax on revenue
We shall distinguish taxes on companies and taxes on individual revenue; in the category
of taxes on revenue, we shall also place taxes on gambling and entertainment.
A- Taxes on Companies(TC)
They are taxes on profits made by companies in Cameroon, whether these profits
are distributed or not.
16
It involves taxes on fiscal result determined in itself from accounting after reintegration of
undeductible charges and deduction from products that cannot be imposed.
The rate of TC stands at 35% to which is an added council additional centime at the rate
of 10%, being a total of 38.5%.
TC is paid spontaneously during the financial year monthly representing 1.1% of the
turnover for each month and paid on or before the 15th of the following month.
It is also paid from a 1% debit (otherwise known as deduction) on the amount of
importation operations or purchases from wholesalers or retailers, this is a 5% deduction for
companies that do not have tax payers‘ card; it can be deducted from the amount that would be
paid the following month.
At the end of the financial year, the balance is paid spontaneously at the moment of
declaration.
To sum up, we think that, the results of a company must be deducted by the State at the
rate of 35% with a minimum of 1% of turnover to which is added a 10% deduction of this tax
partly destined for decentralized local communities and partly for the State as will be seen later.
B – Tax on individual revenue (TIR)
This is a tax on individuals or associates of companies having realized revenues in
Cameroon or simply having a habitual residence in Cameroon.
Following the fiscal law in Cameroon, there are five categories of revenue:
 handicraft, industrial and commercial profits
 treatment, salaries, pensions and life annuities
 profits from agriculture
 land title revenue
 And revenue from movable capital which involves all the revenue distributed.
17
The method of determining the net revenue to be paid is different from one category to
another, but all in all, apart from revenue from movable property to be paid on TIR, all the other
categories should, in the absence of a flat rate for these, be reduced from real charges that
have been a burden to this revenue.
In the case of a flat rate on charges, the law has fixed the rate for the treatment of
salaries at 30% and for land title revenue at 40%.
BAIC and BA are actually treated or simplified by accounts of charges and products;
basically, the rate of the profit is determined according to the turnover: 20% if it is from a benefit
or from a production and 7.5% in the case of buying and reselling.
TIR is an annual tax: annual tax schedule thus annual base.
Apart from the IRCM whose rate is proportional (15%), the tax schedule for TIR is as
follows :
Flat reduction rate: 500 000
From 0 to 2000 000……………….10%
From 2 000 001 to 3 000 000……..15%
From 3 000 001 to 5 000 000……..25%
Above 5 000 000………….35%
However, we note in the category of land title revenue, tax deduction at standard rate of
10% made on the most valuable property by sellers of existing or non-existing buildings.
Recovery of TIR is the same for three categories of revenue: BAIC, BA and
RF.Payments are made monthly through a 1% deduction on turnover increased by a CAC 10%,
and the balance is payable at the end of the year when the yearly declaration is made.
Salaries are deducted from the source by employers from the monthly share of tax which
makes the law suppress the obligation to declare salary revenues in the case where these
revenues are the only ones received by the tax payer during the year
18
With regard to property capital to which the law also likens all the disinvestments in
society, deductions and distributions, recovery is also made by deduction from the source to be
paid latest 15 of the following month( or quarterly according to the collection system).
C. Special Tax on Revenue :
Article 225 of CGI provided for taxation of revenue that is not taken by the local tax
system and paid by companies or establishments in Cameroon to individuals or corporate
bodies out of Cameroon.
The rate of the STR is fixed at 15% from the gross amount of charges and other targeted
sources; declaration and payment are made by the paying party on the 15 of the month that
follows. The Franco- Cameroon Tax Convention reduced this rate to 7.5% for operations carried
out in the two countries.
I.1.2 – Tax on expenditure: VAT and accises rights
VAT is a tax paid on the basis of the value added to goods at every stage of its
commercialization and definitely born by the final consumer; VAT is the successive value added
to a good till its final consumption
It is said that VAT is a neutral tax on the distribution chain of goods and services to the
final stage of consumption following the principle that VAT supported from the initial stages is
deducted from the VAT collected at the last stages; but this neutrality cannot be defended when
it comes to measuring the weight of the tax in general within a tax system.
In fact, the economic operator involved in activities not exempt from production, from the
importation of services and distribution is deducted directly on the gross margin which will be
restituted to him at the time the products are sold or returning the tax loan that he must have
stored up, meanwhile he should bear the tension caused by the treasury because of this
deduction.
VAT rates stand at 17.5% for transactions within the country and 0% for exportations to
which should be added the CAC.
Eg: X buys a good at HT 10 000 FCFA, he pays TTC 10 000 + 19.25%10 000 = 11 925
19
He will have VAT deductible = 1 925 (cash flow
He decides to resell the same good at HT 12 000 being a margin of 2 000 ;
He will collect a VAT = 19.5% 12 000 i.e. 2 310 (cash flow reimbursement) ;
He will pay to the State: 2 310 – 1 925 = 385
Actually, it is the VAT made available by the margin that has been collected i.e.
19.25% 2000 = 385 and which he does not pay because he received from his customer.
I.1.3 – Tax on capital :
A. Land title tax
TF is levied annually on real estate, constructed or not, situated in Cameroon in
administrative headquarters or in towns and villages that benefit from infrastructure and urban
services such as motorable or tarred roads, water supply, electricity and or telephone.
Anyway, buildings for industrial use, warehouses or storehouses, except buildings for
offices constructed by industrial, agriculture, stockbreeding companies are exempted from tax ;
the same goes for land allotted exclusively to agriculture, stockbreeding and or fishing
TF is levied on the value of land and buildings at the rate of 0.1% increased by 10%
from CAC.
B. Registration duties
Registration duty is a tax on the judicial aspect, in particular texts on the transfer of
heritage which may be either expensive or free of charge.
The registration formality is the transcription of a date in a register called standard
register, texts needed or not in the registration. This transcription is equal to the payment of tax
called registration duties.
The lease contract for example, a text transferring the ownership of movable or
immovable property, is imposed on the registration duty according to the following procedure:
20
Once the voluntary agreement of both parties to the lease contract is signed, stating
the amount of the rent, it is presented at the registration; it is taxed at the rate of 10% for
professional or commercial purposes; and 5% for habitation purposes.
Another example is when an agreement between parties has never been
documented. In this case the tax administration replaces the lease contract; the tax payer is
called upon to subscribe to the Verbal Lease Declaration whose form is given by the taxation
Centre. This declaration is presented at the registration following almost the same conditions as
in the written lease contract.
C. Tax on gambling and entertainment :
Articles 206 and207 of CGI imposes the tax on gambling and entertainment on all
individuals or corporate bodies operating in Cameroon either as main operator or assistant, on
games that may be profitable or simply for entertainment.
Tax on gambling and entertainment is not exempted from paying tax on revenue and
VAT; it is more or less considered as a burden deductible from the determination of tax on
revenue.
The nature of this tax and particularly its mode of payment (tax base) is at the same
time a tax on income (casinos) and tax on capital (entertainment games and slot machines).
- casinos :
Proceeds from games in casinos (per contra games and games in circles) are subject to
tax on gambling
The rate of the tax is fixed at 15% for all gross products from games including other
receipts and added to this are the community‘s additional centimes at the rate of 10% profited
by the council where the games are being carried out.
The tax is paid within the 15 days that follow the month of the tax operations using a
special form issued by taxation services
21
. - Entertainment games and slot machines:
The annual tax is declared before 31 March; the tax is calculated as follows, increased
by 10% :
baby-foot : 20 000 FCFA per machine per year,
flippers and video games: 40 000 FCFA per machine per year,
slot machines : 100 000 FCFA per machine per year.
The amounts are increased by 10% in centimes to the benefit of the council where it is
exploited.
D.
Axle tax
charge vehicle of more than 3 tonnes :
9 000 Fcfa
charge vehicle of more than 5 tonnes and less than 16 tonnes:
18 750 Fcfa
charge vehicle of more than 16 tonnes and less than 20 tonnes: 33 750 Fcfa
charge vehicle of more than 20 tonnes and less than 30 tonnes: 56 250 Fcfa
charge vehicle of 30 or more tonnes :
75 000 Fcfa
vehicle for transportation of logs and cut wood :
112 500 Fcfa
E. Stamp duty
-
Stamp on publicity : 2% of the cost of publicity excluding publicity with vehicle
using loud speakers whose rate is 20,000 CFAF per month per vehicle;
-
Stamps on automobiles :
Motocycles :
2 000 Fcfa
Vehicles from 02 to -8 HP :
15 000 Fcfa
Vehicles from 08 to 13 HP :
25 000 Fcfa
Vehicles with more than 13 HP :
-
100 000 Fcfa
Dimension stamp :
Register paper, size 42 x 54 :
1 500 francs
Normal paper, size 29.7 x 42 :
1 000 francs
Half of normal paper, size 21x 29.7 :
1 000 francs
- Airport stamp
Domestic flight :
International flight :
1 000 Fcfa
10 000 Fcfa
22
- stamps for issuing some documents :
Passport, pass, driving licence and visas
Identity cards and residence permit
stamp for driving licence and car registration document
hunting permit and similar activities
licence to carry arms
-
Graded stamp : art. 585
It is the stamp duty demanded for each copy of an act exempted from registration
formalities by expressed provision by the law ; its rate is fixed according to the maximum value
stated in the act :
10 000 francs for values between 0 and 1 000 000
25 000 francs between
1 000 001 and 20 000 000
20 000 001 and 50 000 000
50 000 001 and 100 000 000
100 000 001 and 500 000 000
300 000 francs above
500 000 000
I.2 Local taxes
A. full discharge tax, business and licence tax
(further explanation in the second part)
B. additional council centimes :
Additional council centimes are a 10% deduction attached to the main State taxes: tax
on companies, tax on individual income, land tax and tax on gambling and entertainment. These
are the main sources of the council budget.
CAC proceeds are shared between the State, FEICOM and councils: Decree
no.2007/1139/PM of 3 September 2007 fixes this repartition as follows:
10% to the State, as tax assessment and recovery fees,
20% to FEICOM,
70% to Councils and urban Communities
23
C. The share of the duties for the transfer of buildings is the responsibility of the
local government
The allocation of the share of 50% of registration duties on buildings is to the councils
where these buildings are located.
D. Direct council taxes : Decree no. 80/017 of 15 January 1980

water tax,
tax on public lighting, tax on garbage disposal, tax on the
functioning of ambulances
Taxes
Salary owners
Flat rate
Licence paying
companies
Water
150 to 10 000
50 to 250
FCFA/month
FCFA/year
2 500 to 30 000
FCFA/year
Public lighting
- II -
- II -
- II -
Garbage disposal
- II -
- II -
- II -
Functioning of
ambulances
Maximum : 240/year

Tax on arms : it is paid yearly by all arm carriers and owners of firearms
rifles :
2 000 Fcfa
smoothbore gun :
pop gun :
E.
Maximum : 240/year Maximum : 240/year
1 500 Fcfa
1 500 Fcfa
handgun and pistol :
2 000 Fcfa
shotgun :
200 Fcfa
Indirect council taxes: Decree no. 2002/2175/PM of 20 December

Slaughter tax paid by butchers for cattle slaughtered in an equiped or owned by
the council slaughterhouse : from 250 to 1 000 FCFA.

Pound duties : rates of 2 000, 5 000 and 10 000 FCFA.

Renting of stores in the market : the rents vary between 5 000 and 60 000
FCFA for surface areas varying between 4 m² and more 24 m².

Duties on place :
-
In the market : 250 FCFA per day for all goods,
24
-
Outside the market: 2 000 CFA per m² per day.

Building permit : 1% of the value the building ;

Fee for temporary occupation of public roads : 2 000 FCFA per m² per day;

Tax for occupying car parks :


-
taxis :
-
bus : 15 000 per quarter per bus.
10 000 FCA per quarter per taxi,
Tax on entertainment
-
habitual entertainment : 100 000 CFA per quarter per establishment
-
occasionnal entertainment : 50 000 CFA per representation
Tax on publicity :
1° - Urban councils
-
publicity notice board, banners and neon signs 1 500 FCFA/m², /year /face ;
-
vehicles with speakers :
a) non-residents………………1 000 FCFA per day per vehicle
b) residents…………………..30 000 FCFA par year per vehicle
-
vehicles without speakers :
c) non-residents………………..100 FCFA per day per vehicle
d) residents…………………… 10 000 per year per vehicle
- public address systems in shops…………… 500 per day per vehicle
2° - rural councils
- publicity notice board, banners and neon signs 1 000 FCFA/m², /year/face ;
- vehicles with speakers :
a) non-residents…………………………….. ……….2 00 FCFA per day per vehicle
b) residents…………………………………20 000 FCFA par year per vehicle
- vehicles without speakers :
c) non-residents…………………………….. …50 FCFA per day per vehicle
d) residents………………………………………50 000 per year per vehicle
- public address systems in shops……………… 200 per day per vehicle
25



Taxes for damage on the road :
-
road coated with gravel bitumen : 90 000 FCFA per m² or fraction of m²
-
road covered with bitumen :
45 000
-
earth road
15 000
-
damage caused by a tracked vehicles
:
a) road covered with bitumen
5 000
b) earth road
2 000
Transhumance tax and transit tax :
a) cattle and equines
500 Fcfa per head
b) sheep and goats
120 Fcfa per head
Communal stamp : 200 FCFA
I.3 Specific taxation
I.3.1 The petroleum sector:
Due to the fact that they carry out their research and exploitation activities in
Cameroon, contractors and companies associated with petroleum are subject to the payment of
the following taxes and charges.
-
Applications for attribution, renewal, transfer, transmission or renunciation of petroleum
contracts and authorization from it are subject to the payment of fixed duties whose amounts
and payment modalities are stated in the Finance Law; the same goes for applications for
attributions or renewal of authorization to prospect
-
Owners of petroleum contracts and authorizations from them are subject to an annual
superficiary charges whose declaration and payment modalities are stated in the annual
financial law.
-
Owners of concession contracts pay a monthly charge proportionate to production. The
rate of this charge as well as tax assessment rules and recovery, which can be different from
liquid hydrocarbon and for gaseous hydrocarbons, are stated in the concession contract.
-
Owners of petroleum contracts pay taxes on companies for the net profits they derive
from all their research and exploitation activities in Cameroon.
26
-
The rate of taxation on companies applicable to revenue derived from research and
exploitation operations is fixed by the petroleum contract. This rate should be between the rate
of the common law provided in the General code of taxation and fifty percent (50%)
-
The owner of a concession contract can be subject to an additional petroleum deduction
calculated on the profit derived from petroleum operations, whose modalities are fixed, if need
be, in the contract.
-
The owner is liable, in the conditions of common law, to pay registration duties, stamp
duty, toll gate, land publicity rights and tax on vehicles, with the exception of registration duties
relating to loans, caution and contracts linked directly to petroleum Operations.
-
The owner is still subject to all tax obligation and payment relating to taxation and taxes
deducted from the source for the public treasury, especially concerning taxes on salaries,
profits, income and land tax, with the exception of al taxes on interest paid to non resident
lenders for funds concerning development investment.
The owner of a petroleum contract is exempt from:
-
All tax on profits and dividends paid to the owner‘s shareholders;
-
All direct taxes levied on the results of petroleum Operations to the benefit of the State,
decentralized territorial authorities and any corporate body of public law due to its activities;
-
The supply of goods and the provision of all types of services, including studies, which
are directly linked to the implementation of petroleum operations, are exempt from turnover
taxes, on the value added and assimilated taxes.
-
With regard to studies and development of petroleum operations the contractors and sub
contractors are exempt from paying special tax on revenue; this exemption is on assistance,
renting of equipment, material and all sort of services provided to a contractor by his sub
contractors concerning petroleum operations, on condition that they do not have a stable
establishment in Cameroon and supply at cost price, on the contractors‘ bill, services or goods
for petroleum operations.
I.3.2 The forestry sector :
- The felling tax
The felling tax is levied on the FOB value for all kinds of logs for exploitation.Its rate
is 2.50%.
27
- Annual forest charges
Annual forest charges are placed on the surface area of the forest to be exploited
and have a bottom rate financial offer; this rate is fixed as follows:
Sales of felling area: 2 500 F CFA/ha
Concessions:
1 000 F CFA/ha
The proceeds from the annual forest charges are shared as follows:
- State :
- Councils :
50%
40%
- Village communities : 10%
- Export surcharge
Export surcharge is also constituted of the bottom rate which can be used to
attribute some exportation quotas of certain authorized tree species.
Rates of the surcharge in the example of the Ayous are as follows:
- Ayous
4 000 FCFA/m³
- Promotion tree species of the first category other than Ayous : 3 000 F CFA/m³
- Promotion tree species of the second category:
500 F CFA/m³
- Factory tax
This tax concerns finely worked and raw wood transformation units; it is calculated
on the real volume of each log measured with the bark before entering the factory.
Its rate is 2.25% FOB value.
- Relocation tax
Relocation tax is fixed at 100 FCFA per hectare
I.3.3 The mining, water and energy sector :
- Tax for cleaning and draining up industrial water
It is fixed at 2 000 FCFA per unit charge of pollutant.
The rate of charge for sampling surface or underground waters for commercial and
industrial purposes is as follows:
- 100 FCFA per cubic metre for the first 1 000 cubic metres of water sampled ;
- 50 FCFA per cubic metre for sampled water more than 1000m3
28
- 25 FCFA per cubic metre for sampling water destined for agricultural, pastoral or
fish farming whose daily quantity is more than five (5 000) for humans
- Applications for attribution, renewal or relocation of mining authorization
Fixed duties whose amounts and payment formalities are determined by the laws in
force are paid to the public Treasury.
- Ad valorem taxes on mining products, taxes on the extraction of substances
from the quarry
They are stated in the rules and regulations in force.
I.3.4 The gas sector
- Annual charges:
Transport, distribution, transformation, sale of gas importation and exportation
activities are subject to pay an annual charge fixed at 5% of the turnover.
These charges are paid quarterly in arrears; the first payment comes six months
after the end of the accounting year concerned.
- Applications for attribution, renewal and transfer of a concession, a licence
or an authorization:
They are subject to pay a fixed duty whose rates are fixed as follows:
a) Transport Concession or Distribution:
- Attribution: five million (5 000 000) FCFA ;
- Renewal: seven million five hundred thousand (7 500 000) FCFA ;
- Transfer: ten million (10 000 000) FCFA ;
b) Transformation, Stockage, Importation and Exportation Licence;
- Attribution: two million (2 000 000) FCFA ;
- Renewal: two million five hundred thousand (2 500 000) FCFA ;
- Transfer: three million (3 000 000) FCFA
c) sales Autorisation
- Attribution : three hundred thousand (300 000) FCFA ;
- Renewal : five hundred thousand (500 000) FCFA
29
- Transfer: seven hundred thousand (700 000) FCFA
I.3.5 The fishing sector : Law no.94/01 of 20 January 1994 on forestry, fauna and
fishing.
- Tax on authorization for industrial fishing
1- Nationals
500 000 FCFA
Internationals
5 000 000 FCFA
2- Tax on sub-marine fishing
50 000 FCFA
3- Tax on fish farming
5 000 FCFA
4 – Tax on the exploitation of ornamental fish
150 000 FCFA
5 –Tax on the collection of sire, larva, post larva, eggs
and young fish
2 500 FCFA
6 – Exceptional tax on the collection of protected species
50 000 FCFA
7 – Tax on D permit (permit for scientific fishing)
50 000 FCFA
I.3.6 Tax on the stockbreeding sector
- Exploitation tax
 Tax on the exploitation of dogs by security companies
5 000 FCFA /head /year
 Tax on the domestic circulation of animals
-
bovine, horses, donkey
200 FCFA /head And animal and fishing products
ovine, caprine, porcin100 FCFA /head
-
poultry
-
pets
-
less than 100 kg
10 FCFA /head
500 FCFA /head
1000 FCFA
- veterinary tax at production

veterinary tax on local market
Fresh and frozen,salted,smoked or preserved products, :
12% of the licence amount or of the standard rate tax, paid latest on 15 March every
year.

veterinary tax on international market
Veterinary tax at exportation and importation
Animal /Products/Taxes
Export
Import
30
Bovine
5 000 FCFA / head
2 000 FCFA / head
dogs /cats
5 000 FCFA / head
5 000 FCFA / head
Parrots
5 000 FCFA / head
1 000 FCFA / head
other trophies
10 000 / trophy
5 000 / trophy
Hides and skins
3% of the value
3% of the value
Other animal products
3%of the value
3% of the value
I.3.7 The tourism sector:
DUTIES TO OBTAIN LICENCE FOR A TOURIST ESTABLISHMENT
Exploiting a tourist establishment or site, travel organisation agencies, a
professional tourism training centre and hotel management is subject to an exploitation licence.
Issuing an exploitation licence enables obtaining a duty fixed as follows:
A/ - Exploitation licence to run a tourist establishment:
A-1- Establishments classified according to international standards
Hotels :
- category five (5) stars……………………………..
100 000 F
- category four (4) stars……………………………..
80 000 F
- category three (3) stars……………………………..
60 000 F
- category two (2) stars……………………………..
40 000 F
- category one (1) star……………………………..
30 000 F
Restaurants :
-
category three (3) stars……………………………..
25 000 F
-
category two (2) stars…………………………….
20 000 F
-
category one (1) star……………………………..
30 000 F
A-2 Establishments classified according to national standards
31
Inns and assimilated establishments :
-
group I…………………………………………………….
20 000 F
-
group II……………………………………………………
10 000 F
Eating houses :
-
group I……………………………………………………………..
10 000 F
-
group II……………………………………………………………..
5 000 F
A-3 Leisure Establishments
-
1st category …………………………………………………………….. 100 000 F
-
2nd category……………………………………………………………
75 000 F
B/ - Exploitation Licence to run travel agencies
-
1st category ……………………………………………………………..100 000 F
-
2nd category……………………………………………………………
75 000 F
-
3rdcategory ……………………………………………………………
50 000 F
C/ - Exploitation licence for tourist sites
-
local category tourist site……………………………………………….25 000 F
-
regional category tourist site ……………………………………………50 000 F
-
inational category tourist site …………………………………………..75 000 F
-
international category tourist site ……………………..…………...
100 000 F
D/ - Exploitation Licence for training centres
-
Single rate………………………………………………………………………..100 000 F
32
E/ - Exploitation Licence for an apartment transformed into a lodging establishment and
restaurant
-
Single rate for Douala and Yaoundé ……………………..500 000F
LICENCE FOR SIGN BOARDS
Any person with an exploitation licence for a classified or non classified tourist
establishment, travel organisation agencies or tourist site is supposed to put up a permanent
sign board in front of his establishment, site or structure, issued by the Ministry of Tourism.
This sign board shows the nature and classification of the establishment, structure or site
concerned.
Putting up a sign board will enable the establishment benefit from an annual rate from the
government fixed as follows:
A/ Tourist Establishments classified according to international standards
-
Hotels……………………………………………………… 10 000 F per star
-
Restaurants…………………………………………………..8 000 F per star
Leisure Establishments:
-
1st category ……………………………………………………30 000 F
-
2nd category……………………………………………………20 000 F
B / Unclassified tourism establishments
Inns and assimilated establishments ………………………7 000 F
-
Eating houses…………………………………………………5 000 F
-
Leisure establishments …………………………………….30 000 F
C/ Travel organisation agencies
-
1st category …………………………………………………30 000 F
-
2nd category…………………………………………………20 000 F
-
3rd category…………………………………………………10 000 F
33
D/ Tourist Sites
-
local category ………………………………………………5 000 F
-
regional category …………………………………………10 000 F
-
national category …………………………………………15 000 F
-
international category ……………………..……………..25 000 F
When a tourist establishment has lodging facilities, restaurant, and /or leisure facilities, the
tax is paid only on the main activity.
Dues and taxes mentioned above are paid at the revenue office in the Ministry of Tourism.
The dues are paid at the time the licence is issued.
The amount to be paid should be paid in one instalment latest 30 September of each year.
I.3.8 Tax on the road sector:By Law no.2004 /021 of 22 July 2004
- 500 FCFA per road control post
I.4 Parafiscal funding
I.4.1 Contribution to “Crédit Foncier” : Law No. 77-10 of 13 July 1977 modified by
Law No. 90//050 of 19 December 1990
Salary earners and employers of the private and public sector must contribute to Credit
Foncier on salaries which are calculated at the rate of1% for salary earners and 1.5% for
employers.
I.4.2 Contributions to National Employment Fund: Law No. 90//050 of 19 December
1990.
In the same conditions as the contribution to Crédit Foncier, the deduction rate in NEF is
fixed at 1%.
34
I.4.3.Audio-visual tax: Ord. No. 89/004 of 12 December 1989
Wage earners of the public, private and state owned sectors as well as individuals and
corporate bodies obliged to pay taxes also pay audio visual tax.
AVT for wage earners is graded from 750 FCFA to 13000 for salaries ranging from 50
001 to 100 000; it is one time more than the main licence for payable activities.
The basic tax on RAV is constituted by the main salary, increased by natural advantages
calculated on a legal rate. The law has exempted from RAV salaries of domestic staff and
workers in the sector of agriculture exploitation and individual stock breeding.
I.4.4 The tax payers’ card: LAW no. 95/010 of 1 July 1995
A tax payer‘s card has been instituted and its validity is two years for any individual or
corporate body liable for tax in Cameroon.
The issuing of the card costs 2,000 FRS, which is reduced to 500 FRS when it is being
renewed; proceeds from managing this card are allocated to the functioning of the structure
responsible for issuing it.
I.4.5 Contributions to the National Social Insurance Fund :
The social security system covers three (03) branches:
-
family allowance,
-
accidents at the work place and illnesses in workers,
-
Old age pension , invalidity and death
The first two branches are the total responsibility of the employer while the third is for
both parties. The maximum salary to be received following the calculation from contributions is
300, 000 FCFA/month

family allowance : Decree no. 74/723 of 12/08/1974
The contribution rate is fixed as follows:
35

-
7% of salaries for workers in the general system including domestic workers,
-
5.65% for workers in the agriculture and assimilated sectors,
-
3.7% for teaching staff.
accidents at the workplace and illnesses in workers: Decree no. 78/283 of
10/07/1978
Companies had been classified according to internal risks and the frequency of
their occurrence:
Group A : rate 1.75%
Agriculture, agro-industry, stock breeding, fishing, liberal professions, trade,
banking, insurance,
private health organs, diplomatic missions, cinema,
theatre, hotels, bars, restaurants, cafés, State, local communities,
railway
transport .
Group B : rate 2.75%
Slaughter houses, transformation industries, bakeries, confectioneries,,
polygraph industries, automobile industry, oil refining, PW and building, urban,
air and sea transport, transit, security and surveillance.
Group C : rate 5%
Forestry companies, sawmill, fishing companies, transportation of goods,
studies on hydrocarbon, metalworking industry, and thorough work in the
mines.

Old age pension , invalidity and death
This is the only branch in which the employee is called upon to contribute
The 7% contribution rate is divided as follows:
4.2% paid by the employer
2.8% paid by the employee.
I.4.6 Additional Consular Centimes :
Taxes levied on business and other licences are increased by additional centimes to the
benefit of consular chamber.
Additional centimes paid by industrial or trading companies, except those below, go to
the Chamber of Commerce mines and handicraft.
36
Those paid by forest and agriculture industries are reassigned to the Chamber of
Agriculture, livestock and forest.
They feature distinctly on business and other licences; they are calculated at the rate of
3% of the main sum of the business and other licences;
I.4.7 The road fund :
Special tax on petroleum products :
The special tax on petroleum products is on oil distributing companies of gasoline super
and diesel. Its rate is fixed as follows:

Gasoline super : 120 francs per litre ;

Diesel : 65 francs per litre.
No matter how the tax is distributed it is a public property and thus has to be included in
this study. The product of the special tax on petroleum products is partly used for charges on
road usage as follows:
75 francs to be taken from a litre of super,
65 francs to be taken from a litre of diesel
Tax recovery is done by issuing two liquidation forms, one for the government and
another for the Road fund. Within the framework of the Finance law, each financial year, the
State fixes a maximum amount to be paid to the road fund.
37
1.4.8 SYNTHETIC GUIDE TO THE IDENTIFICATION OFTAXES IN CAMEROON
Nature of
tax
1. IS
2. IRPP
issuing organ
Beneficiar
y organ
Periodicity
and date of
payment
Tax
Administration
State
- monthly
deposits
- deduction
- balance
before15
March
Tax
Administration
State
average
duration of
declaration
and payment
formalities
2 d x 12 =24
d
1d
1d
Yearly Total :
26 d
- monthly
deposits
or IRCM
collected
- balance
before15
March
2 d x 12 =24
d
before 15 of
the
following
month
Monthly
Declaration
Simultaneous
Declarations
with IS
or‘IRPP
Simultaneous
Declarations
with IS
orl‘IRPP
2d
1d
1d
Yearly Total :
26 d
Tax rate
1% CA + CAC
1% déducted
from deposits
35% tax profit +
CAC
- 1.1% CA or
1,65% in the
basic system
- scale reaching
35% of revenue
+ CAC
Required
Formalities
- a form for
declaration of
deposits,
deductions at
source to be
filled
- a DSF to be
produced
- a form for
declaration of
deposits,
deductions at
source to be
filled
- a DSF to be
produced in
the simplified
or real
systeml
3. Special
tax on
Revenue
Tax
Administration
State
4. VAT and
‘Accises
duties
Tax
Administration
State
5. Taxe sur
la Propriété
Foncière
Tax
Administration
State
Yearly
Declaration
6. Les
Tax
Droits
Administration
d‘enregistre
ment
State +
50% for
councils on
lease of
buildings
2 d minimum
Rate varying
from 2% to15%
or DF + graded
stamp
7. Taxes
sur les jeux
de hasard
et de
divertissem
ent
8. Taxe à
l‘essieu
Tax
Administration
State
Depending
on the type
of act
presented
at the
formality
Monthly
Declaration
or yearly
payment
2 d x 12 =24
d
or
2d
15%CA + CAC
or applying the
scale
- forms
available in
tax services
Tax
Administration
State
Quarterly
Declaration
2d
- - forms
available in
tax services
9. Les
droits de
timbre
- tax
Administration :
from 1 to 5
- DGSN : from 6
to 10
-Min.
Transport:from
11 to 12
- MINAT :
No.13
- MINEPIA:
State
Vary
according
to stamp
duty
instant
payment
according to
the problem
raised
graded scale
according to
the use of the
véhicle
Vary from one
stamp duty to
another
19.25% with VA
T deduction
paid before
0.1% of the
value of the
building + CAC
Observations
1 VAT
declaration
form to be
filled
1 TPF
declaration
form to be
filled
deposit acts
for
preliquidation,
pay duties
and wait
Declaration to
be done,
Payment of its
bill or value
demanded
.tax paid where
the building is
situated and so
can be moved
- possible
rejection of
acts,
- stamps on
copies
proportionate
taxi s a burden
to IR ;
fixed taxi s not
1- stamp on
publicity
2- automobile
stamp
3- dimension
stamp
4- airport
stamp
5- Graded
stamp
6- national
38
No.14
passport
stamp
nationaux
7- stamp for
visa on foreign
passport
8- stamp on
national
identity card
9- stamp on
residence
permit
10- stamp on
resident card
11- stamp on
car document
12- stamp on
transport
contract
13- stamp on
licence to carry
arms
- stamp on
hunting permit
10.
standard
rate tax
Tax
Administration
Councils
Quarterly
oryearly
Option
2d
Deliberation
municipal
council
11.
contribution
of business
and
licences
Tax
Administration
Councils
Quarterly
oryearly
Option
2d
Graduated
scale according
to annual
turnover
12.
Additional
council
centimes
13.direct
council tax
Tax
Administration
Councils +
10% State
Simultaneous
ly
10% of the
main tax to be
paid
none
Tax
Administration
Councils
Simultaneous
ly
scale
none
14. Tax on
arms
15.
slaughter
tax
16. pound
duties
MINAT
State
instant
scale
Councils
Councils
Following
all payment
of IR, VAT
or TPF
-monthly
during
declaration
of
deduction
from
salaries
- yearly on
licence
Yearly
Declaration
Instant
instant
250 to 1 000
FCFA
DGSN
Councils
Instant
instant
17. duty of
place
COuncils
councils
2 000, 5 000
and 10 000
FCFA.
250 FCFA per
day for all
products,
Outside the
market : 2 000
CFA per m²and
per day.
Declaration
and payment
Inspecting
slaughter
houses
Road checks
18. duty
on building
COuncils
councils
Declaration
to be done
01 to 30 d
1% of the
value of
issuing on a
form provided
by the tax
administration
issuing on a
form provided
by the tax
administration
RAV and
CACC are
calculated and
recovered on
the same form
of business
and licence
Inspecting
markets
building plan,
estimates and
39
permit
at the
council
Instant
buildings
19. taxe to
occupy
parks
councils
councils
20. duty on
temporary
occupation
of public
road
21. tax on
entertainme
nt
councils
councils
councils
councils
Declaration
to be done
at the
council
22. tax on
publicity
councils
councils
23. tax on
damage
done on the
road
councils
councils
Declaration
to be done
at the
council
Declaration
to be done
at the
council
24.
transhuman
ce tax
councils
councils
25. transit
tax
councils
councils
26. duty on
communal
stamp
27. renting
of shops in
the market
councils
councils
councils
councils
28.
petroleum
sector
29.
Forestry
sector
Tax
Administration
State
Tax
Administration
State
Monthly
Declaration
2d
2.50% on FOB
value of logs
declaration
form to be
filled
Tax
Administration
State 50%
Council
40%
village
community
15 March
15 June
and
15
September
2 d x3 = 6
sales of felling
area 2500 F /
ha concession
100 /ha
Declaration
on form given
by the
Administration
28. felling
tax
29. annual
forest
charges
instant
land title to be
provided
taxis :
10 000 FCA per
quarter and per
taxis,
bus : 15 000
per quarter per
bus.
2 000 FCFA
per m² and per
day ;
Figurines
on sale in
councils
100 000 CFA
per quarter and
per
establishment
occasional
entertainment :
50 000 CFA per
représentation.
1 500
FCFA/m²,
instantanée
from 2 000 to
90 000
FCFA/m²
depending on
type of road
Bovine and
equine 500
FCFA
Ovine and
caprine 120
Bovine and
equine
150FCFA
Ovine et
caprine 50
200 FCFA
5 000 and
60 000 FCFA
for surface area
varying
between 4 m²
and more than
24 m².
Contracts
should be
registered
Specific law
40
30.
exploitation
surcharge
Tax
Administration
31. factory
tax
Tax
Administration
32.
relocation
tax
30. mining
water and
energy
sector
- tax for
draining up
industrial
waters
- gas
Sector
31. fishing
Sector
-T ax on
authorizatio
n for
industrial
fishing
32.
livestock
Sector
- Tax on
using dogs
by security
companies
- Tax on the
movement
of animals
in the
country
bovines,
horses,
donkeys,
and animal
products
- ovines,
caprines,
porcines
and
halieutic :
10%
State
Monthly
Declaration
2d
State
Monthly
Declaration
2d
Tax
Administration
State
Monthly
Declaration
2d
MINEE
State
MINEPIA
State
MINEPIA
State
- Ayous…./
4000
3
FCFA/m ;
- promotion
specie of first
category other
than Ayous…..
3000
3
FCFA/Mm ;
- promotion
specie of
second
category
……….
3
500FCFA/m
2.25% on FOB
value of logs
100 F /ha
declaration
form to be
filled
technical
inspection of
logs, before
entering the
factory done
by the forest
Administration
declaration
form to be
filled
declaration
form to be
filled
Specific law
Nationals
500 000 FCFA
Internationals
5 000 000
FCFA see
explanation on
the page
5 000
FCFA /head /ye
ar
200
FCFA /head
100
FCFA /head
10
FCFA /head
500
FCFA /head
1000 FCFA
41
- poultry
- pets
- less than
100 kg
- veterinary
tax on
internation
al trade
- Taxe
vétérinary
tax on
local trade
- vétérinary
tax at
production
33. tourism
sector
- duties to
obtain
licence for a
tourist
establihmen
t
- charges
on
signboards
34. road
Sector
35.
contribution
to Crédit
Foncier :
36.
contribution
to National
Employmen
t Fund :
37. audiovisual
charges
38. tax
payer‘s
card
39.
Additional
council
centimes of
Consular
Chambers
40. Road
Fund (
Special tax
on
petroleum
products)
Ministry of
Tourism
State
Tax
Administration
Tax
Administration
State
Tax
Administration
FNE
Tax
Administration
CRTV
Tax
Administration
DGI
Tax
Administration
Consular
Chambers
Tax
Administration
State and
Road Fund
CFC
42
II. CRITICAL EXAMINATION OF TAX DECLARATION AND PAYMENT PROCEDURES:
Cost and duration
Cameroon develops, as we seen in the first part of this study, a mosaic of taxes most of
which influence only indirectly the functioning of the company; well, while still looking for a
simpler and more flexible tax system, it will be advisable to first of all synthesize and bring
together this variety of taxes according to the beneficiaries or according to their nature.
Given that this analysis refers only to the simplification of the formalities of tax declaration
and payment, a step to modify the legal aspect in place may seem superfluous.
At first sight, it would be possible then to clarify and simplify tax declaration and payment
procedures without reforming the tax itself.
We think that the work done so far will not be complete if the simplification desired is still
complex essentially because of many taxes which become heavy for the system even when
there is no sign of exacerbated tax pressure.
Thus, without having the ambition to propose conditions for tax reform in the deep sense of
the word which means creating new taxes or setting up a new management system, it will be a
matter of seeing how it will be possible to come up with better results, if not the same results,
with simpler taxes which do not become entangled with each other in the simple procedure of
declaration and payment.
In order words, we may say it is about improving on the tax declaration and payment system
in a simplified tax plan without jumbling up the foundation and structure of the tax system itself.
Consequently, the following analyses may lead to proposals of contraction of procedures
and of the synthesis of some taxes while still preserving the tax policy set up by the law. So, we
chose to first of all make a critical analysis of the main taxes which occur regularly and
constantly in the life of a company before exploring the possible means and ways of relaxing the
declaration and payment procedures.
43
To this end, we have come up with the following taxes: business licence IS, IRPP,
registration duties for constitutional acts of the company and VAT. But, first of all, we will try to
stop at the formalities of creating a company with all that go with it as far as taxes are
concerned.
A. Creating a company :
The individual company:
It is necessary to first of all have a business registration number.
The following documents must be supplied in the Clerk's Office to register the business
- a stamped application (1 000 Fcfa),
- a photocopy of an ID card (1 000 Fcfa),
- a certificate of non conviction (2 000 Fcfa = 1 000 for the application and 1 000 for the
certificate,
- a lease contract,
- a residence permit (1 100 Fcfa = 1 000 for the stamp and 100 for the form)
- a copy of the marriage certificate or the certificate of celibacy ( 1 000 Fcfa)
- a receipt of 53 000 Fcfa
Total cost of the procedure: 59 100 Fcfa
Deadline: 05 Days
Joint company:
The procedure is practically the same with the only difference that it is entirely complicated
at the level of the notary who takes charge of all the administrative formalities; the additive cost
besides the fees of the notary and the registration fees of the notary statutes can be simply
estimated by the additional time which the notary will need to work.
The company contract includes contributions which are often treated in the tax program
according to their nature:
-
the pure and simple contribution provides social benefits for all risks in the company ;
-
heavy contribution is paid through the values taken from the risks of the company
(example, recovering a debt that weighed on the debtor.
44
The Cameroon tax system in articles 346 and 544 stipulated a graduated rate for capital
rates of constitution acts and prorogation of companies with obligation, liberation or
transmission of movable and immovable property between associates or other persons as well
as acts to increase capital.
Article 544 fixes the dues as follows:
-
2% with a maximum of 750 000 francs between 0 and 750 000 000 francs capital ;
-
1.5% with a maximum of 1 500 000 francs between 750 000 001 and 1 500 000 000
francs capital
-
1% with a maximum of 3 000 000 between 1 500 000 001 and 3 000 000 000
francs
capital ;
-
0.5% with a maximum of 5 000 000 francs between 3 000 000 001 and 5 000 000 000
capital;
-
0.25% with a maximum of 2 500 000 francs above 5 000 000 000 capital.
One of the modern roles of taxation in the economy, especially in an economy where the
demand for investment is very high, should be on tax measures such as tax exemption for some
operations to put in place some types of investment.
From the above article we deduce the will of the law to encourage investment by reducing
the rate of tax on capital if it is high. This effort promotes investment and economic development
can be followed by suppressing graduated taxation and free registration and if need be a fixed
duty on pure and simple contribution in creating a company or increasing capital.
B. The formalities for the declaration and payment of taxes in the life of the company:
II.1 State taxes
II.1.1 Tax on revenue
Generally, tax on revenue is paid in two ways:
- A monthly deduction is obligatory before the 15 of each month; it is equal to1.1% of turnover
realized in the course of the preceding month; it is also paid on all importation at the customs
45
and purchases from wholesale and retail sellers by a 1% deduction made on the amount of the
bill.
- The tax balance on revenue is declared and paid spontaneously at the end of the year before
the 15 March of the coming financial year.
At the department of big companies, the payment order given at the bank helps to debit
the account of the tax payer to the benefit of the State; a copy of this simply goes with the
declaration in order to issue a payment voucher.
Tax declaration and payment procedure on revenue is simplified but it can be improved
on by suppressing deduction on purchases which burdens unnecessarily the calculations
determining tax for which there is not much guarantee in the sincerity of declarations.
II.1.2 VAT and accises rights
II.1.2.1 The high rate of VAT
CEMAC directive fixed a VAT single rate between 15 and 18% ;the effective rate of
VAT in Cameroon is 19.25% :apart from the imbalance which may come from the wish shown
by States in the CEMAC zone to have a common law capable by induction to open a viable
common market, the crucial problem still remains that of reconciling state budgetary objectives
and economic policy needs. Another violation of common texts also resides in the subjection of
operations exempted from tax such as:

gambling and entertainment,

exportation operations,

meat,

correcting glasses,

medical equipment.
VAT is certainly a very profitable tax but its high rate slows down operations such as
financing the economy (erosion of capital, access to credit, VAT credit...)
The high rate of VAT is more detrimental to companies of average importance classified
under the basic regulation and which do not have the possibility of deducting the VAT paid
already.
46
Let us take a convincing example:
Restaurant R is an individual business classified under the basic regulation, that is,
it has an annual turnover tax- free between 15 and 50 million (cf.art.60 and 61 of GCT) ; they
make daily purchases of 100,000CFAF and pays VAT equal to 19,250.
If the restaurant pays this VAT for the margin around 20%, its sales at the end of the
day should be:
120% 119 250 = 143 100
The VAT to be paid will be 19.25% 143 100 = 27 546.75
Restaurant R at the end of the day will spend:
119 250 + 27 546.75 = 146 796.75
And will make a profit of 143 100, being a loss of 3 696.75
Conclusion: in one month, restaurant R will be bankrupt.
If we add this simulation a 1.65% deduction to be paid as deduction of tax on
revenue, the total loss will be 2 361.15 + 3 696.75 = 6 057.9 and we realize that the
restaurant will barely survive two weeks.
We have removed, for the purposes of clarity, from this write up, all taxes attached
to the restaurant business (tourism charges, communal taxes and local taxes etc.)
The solution lies in the determination of a VAT rate compatible with the margins in
each sector of activity and in case we maintain the non deductibility of VAT for some
instalments of the turnover (suppressing the basic regulation), introduce a tax deduction to
make taxation more flexible and avoid tax evasion.
II.1.2.2 The long procedure of paying back VAT loans:
Section 149 gives theoretical indications on this issue :
―…in a three month deadline from the date of placing the application, for industries and
loan-lease institutions which have invested as in section 105 and following GCT;
- for exporters in a two- month deadline from the date the application is made
- at the end of each quarter, for diplomatic and consular missions, under a formal
reciprocal agreement, when they have already paid the tax;
47
- at the end of the financial year for non profit making organizations of public utility whose
management is benevolent and disinterested to the benefit of everybody, when their activities
are of a social, sports, cultural, religious, educative or philanthropic nature according to their
objective…, each activity should first of all be authorized by the Director general of taxes‖.
Minimum time required is three months between the application in the management
services and the effective reimbursement signed only by the Director General of taxes.
The centralization of the procedure is necessary when it participates in securing public
funds but it brings many financial difficulties to companies, which can be avoided by delegating
powers to external services of the GCT following well defined proportions.
Validating the applications and the reimbursement of VAT loans should be done in the
regional centres of taxation and in the department of big companies following a limit determined
by the Minister of finances and which however, may not be different from their own
competences with regard to tax relief.
This decentralization accompanied by a better organization of procedures of validation of
VAT loans will improve the quality of relaxing and shortening the reimbursement procedures.
The tax administration will simply have to have a good inspection of services for the control of
activities on the field.
II.1.3 Land Tax
Land taxation requires first of all the mastering of land register capable of providing
information on land both in the rural and urban settings; in other words, a detailed knowledge of
State land duties and a perfect identification of people liable to pay tax and their property.
For this to happen, the availability of a powerful computer capable of handling
information is of capital importance.
Apart from the fact that the law on land in Cameroon is still at the initial stage, land
taxation itself is still not clear.
48
Section 577 defines this tax as follows:
Tax on landed property is paid yearly on property whether built or not, situated in
Cameroon in administrative headquarters.
Also belonging to the tax on landed property are the property mentioned above when
they are situated in towns with infrastructure and urban services as defined below.
By urban infrastructure and services, we mean networks of motorable or tarred roads,
water supply, electricity and/ or telephone
Article 580 fixes the base for taxation:
Tax on landed property is paid on the value of land and buildings as declared by the
owner.
In the absence of a declaration or in case of undervaluation, the administrative value of
the building serves as the base for taxation.
The administration has defined a monograph for the determination of the administrative
values of the tax on buildings by Decree no.2006/3023/PM of 29 December, 2006.
The administrative evaluation applies in the event of a decrease in the monetary or rental
value noted in the acts and declarations submitted to the tax authorities.
-
the monetary value of a building means current price of land or construction on the
market, in the absence of any exceptional reason or suitability;
-
the administrative monetary value of taxation, indicates the value of reference retained by
the tax authorities in the event of transfer of a
building or within the framework of the
declaration of real estate tax;
-
the taxable administrative value of the rents, indicates the value of reference retained by
the tax authorities in the event of renting out land constructed or not;
-
standing, indicates the comfort level, of luxury of a building;
-
the standard, goes to a building of average comfort
DETERMINATION OF THE TAXABLE ADMINISTRATIVE VALUE OF BUILDINGS
49
The taxation, venal or rental administrative value of a building is given by taking into
account the land market, the construction market, the rental market, the level of the
infrastructure and urban services if the building, due to its geographical area profits from
situation as well as fame attached to the neighbourhood.
To determine the administrative monetary values of taxation of buildings not yet
constructed, the criteria of evaluation is as follows:
-
classes of neighbourhood per types of city;
-
types of neighbourhood per zone according to the level of
infrastructure and urban
services ;
-
the value of unconstructed buildings per zone;
-
weighting coefficients of the values of yet to be constructed buildings;
-
the value of frontages per zone.
-
A – Classes of neighbourhoods per type of town
The cities and their neighbourhoods are brought together in ten (10) classes according to
their urban nature, their metropolitan situation or provincial city and in their nearness to the
urban centre. The ten classes are as follows:
Class 1: very posh neighbourhoods of Douala and Yaounde;
Class 2: fashionable neighbourhoods of Douala and Yaounde;
Class 3: other neighbourhoods of the centre town of Douala and Yaounde;
Class 4: other neighbourhoods of the periphery close to Douala and Yaounde;
Class 5: other neighbourhoods of the remote periphery of Douala and Yaounde;
Class 6: neighbourhoods of the centre town of the big cities of the provinces;
Class 7: neighbourhoods of the periphery of the big cities of the provinces;
Class 8: neighbourhoods of the centre town of small and average provincial towns;
Class 9: neighbourhoods of the periphery of small and average provincial towns;
Class 10: inhabited rural area.
B –- Types of neighbourhoods per zone in cities and agglomerations
50
The neighbourhoods in the cities are classified into five (05) zones where the value of the
building is estimated by the level of infrastructure and urban services available.
The evaluation of the value of a zone is done through the networks of tarred or motor able
roads, water, electricity and telephone available in the various blocks of houses. The blocks
forming a neighbourhood are pieces of land or buildings surrounded by natural streets or
boundaries.
The five established zones are:
Zone 1: neighbourhoods or blocks completely equipped, benefiting at the same time from
the neighbourhood‘s networks of infrastructure and urban services like: tarred roads, water
supply, electricity and fixed telephone;
Zone 2: neighbourhoods or blocks partially equipped, benefiting from three of four
networks of infrastructures and urban services like: tarred roads, water supply, electricity and
fixed telephone;
Zone 3: neighbourhoods or blocks summarily equipped, benefiting from two of the four
networks of infrastructures and the following urban services:
tarred roads, water supply,
electricity and fixed telephone;
Zone 4:
neighbourhoods or blocks benefiting from only one of the four networks of
infrastructures and the following urban services: tarred roads, water supply, electricity and fixed
telephone;
Zone 5: neighbourhoods or blocks benefiting from none of the four networks infrastructure
and urban services referred to above.
C- Scale of values of unconstructed areas per zone
Average costs of the square meter of unconstructed areas per zone are determined by the
prices in the market, for neighbourhoods or blocks in cities and agglomerations of equivalent
zones:
51
zone 1 between 12.000 and - 300.000F/m ²
zone 2 from 7.000 to 50.000F/m ²
zone 3 from 3.500 to 30.000F/m ²
zone 4 from 2.000 to 20.000F/m ²
zone 5 from 800 to 5.000F/m ²
The rough administrative estimate of taxation on an unconstructed area is calculated on its
surface, the price of a square meter, following the classes and zones of neighbourhoods
specific to the city or agglomeration
D- Weighting margins of the value of unconstructed areas
The administrative monetary value of taxation on unconstructed areas calculated above can
be balanced with the fall in value, on the basis of the margin given the inexistence of
infrastructures and urban services, particularly:
- The margin for absence of network of water supply: 0.10
The depreciation for absence of water supply must be or equal to 2,500,000 F or
17,500,000 respectively, for unconstructed areas whose administrative gross amount above is
either lower than 300,000,000 F, or equal to or higher than 300,000,000 F
- The margin for absence of electricity: 0.05
The depreciation for absence of electricity must be or equal to 1,500,000 F or 10,000,000
F respectively, for unconstructed areas whose administrative gross amount above is either
lower than 30.000.000 F, or equal to or higher than 30,000,000 F.
- The margin for absence of network of tarred or motorable roads: 0.03
The depreciation for absence of tarred roads must be or equal to 1,000,000 F or
6,500,000 F, respectively for unconstructed areas whose administrative gross amount above is
either lower than 300.000.000 F, or equal or higher than 300.000.000 F.
- The margin for absence of telephone network : 0.01
The depreciation for absence of connection to the telephone network must be or equal to
500,000 F or 2,000,000 respectively for unconstructed areas whose administrative value above
is less than 300,000,000 F, or equal to or higher than 300,000,000 F.
52
E- The margin of the values of frontage per zone:
The value of the linear meter of frontage of an unconstructed area per zone is given inside
an interval of respective values of the cost of the infrastructures and the networks closest to the
area, according to the cities and agglomerations.
The value of the frontage is calculated by multiplying the length referred to above of the
frontage by the value of the linear meter of frontage per zone, following the margin hereafter:
zone 1 from 15.001 to 30.000F/m
zone 2 from 8.001 to 15.000F/m
zone 3 from 5001 to 8.000F/m
zone 4 from 100 to 500F/m
zone 5 0F/m
The administrative monetary value of taxation of unconstructed areas per zone and city or
agglomeration is equal to the value of the open area, raised value of frontage, made deduction
of the depreciations.
53
DETERMINATION OF THE ADMINISTRATIVE VALUE OF TAXATION OF THE RENTING OF
AREAS
The annual administrative value of taxation of the renting of unconstructed areas is equal
to five percent (5%) of their administrative monetary value of taxation
DETERMINATION OF THE ADMINISTRATIVE MONETARY VALUE OF TAXATION OF
BUILDINGS
For the determination of the administrative monetary values of taxation of buildings, the
criteria and parameters of evaluation are the following:
- types of construction;
- the margin of the values of construction per type;
- weighting margins of the value of constructions per type of construction
A- Types of construction:
The buildings are classified in five (5) standards as follows: according to their architecture,
quality of materials used and level of completion observed.
Type 1: high standing
Building at expected level, final material used, top-of-the-range completed villa or
apartment.
Type 2: Standing
Building at expected level, final material used standard completed villa or apartment.
Type 3: Standard:
Final material used standard completed Villa or apartment
Type 4: semi hard
Semi-hard material, construction of average completion
54
Type 5: Temporary
Temporarily constructed, incomplete
B - Margin of the values of construction per type
The average cost of the square meter of frame per type of construction is determined
from the costs observed in the market:
type 1 more than 145,000 F/m ²
type 2 from 90,001 to 145,000 F/m ²
type 3 from 45,001 to 90,000 F/m ²
type 4 from 20,001 to 45,000 F/m ²
type 5 from 7,000 to 20,000 F/m ²
The rough administrative monetary value of constructions is calculated according to the
built surface, and the price of the square meter according to the type of construction.
C – Weighting margins of the value of constructions
The rough administrative monetary value calculated above, can be balanced with the fall
by the margins below, to obtain the administrative monetary value of taxation of the buildings
The margin of depreciation for absence of connection to the water supply network: 0.10
The depreciation for absence of connection to the water supply network must be equal to
4.000.000 F.
The margin of depreciation for absence of connection to electricity network: 0.05
The depreciation for absence of connection to the electricity network must be equal to
2.000.000 F.
The margin of depreciation for absence of public telephone supply: 0.02
The depreciation for absence of public telephone supply must be equal to 1.000.000 F
55
The margin of depreciation for lack of accessibility:
Good: 0
Average: 0.1
Bad: 0.2
The margin of depreciation for state of out datedness
Good: 0
Average: 0.3
Bad: 0.5
DETERMINATION OF THE TOTAL ADMINISTRATIVE VALUE OF TAXATION OF
BUILDINGS
The total administrative value of taxation of the building is equal to the sum of the
administrative value of taxation of the open area and the constructions obtained as above.
The total administrative value of taxation of the building is balanced by the margin of standard
as defined in three levels below, according to the fame attached to the neighbourhood,
compared to the concepts of luxury and comfort.
High standing: 1.20
Average standing: 1.00
Low standing: 0.80
ADMINISTRATIVE TAXATION ON THE RENTING OUT OF BUILDINGS
The annual administrative value of taxation of the renting of buildings is equal to ten
percent (10%) of their administrative monetary value of taxation.
The Minister for Finance, by Decree no.00000245/MINFI of March 5, 2008 laid down the
modalities of the enforcement of the Prime Minister‘s Decree on the administrative evaluation
specifying:
margins of the administrative value of the square meter of ground per class and zone;
the margin of the administrative value of the linear meter of frontage per zone;
the administrative margin of the square meter built per type of construction.
The price of the square meter of ground per class and zone of neighbourhood and block,
before weightings, is fixed as follows; starting from the prices in the market, for the
neighbourhoods of cities and agglomerations of equivalent levels:
56
Groups
of Towns
CLASSES OF
NEIGHBOURHOOD
TYPES OF LAND
Water/Electricity
network
Tarred roads
Téléphone
Group 1
Group 2
Group 3
Very posh
Posh
Centre town
closePeriphéry
remotePeriphery
Centre town
Periphery
Centre town
Periphery
Group 4
1
2
3
4
5
6
7
8
9
10
four/four
four/four
four/four
three /four
one/four
two/four
one/four
two/four
Zéro/four
Zéro/four
Zones
VALUE
Blocks
neighbo
urhood
1
1
1
2
4
3
4
3
5
5
64 800
42 000
36 000
9 600
4 000
7 200
3 200
4 800
1 440
640
TYPES OF CONSTRUCTIONS
MATERIAL FINISHI TYPES
VALUES
NGS (3)
(D/S/P) (2)
(HG/CO (1/2/3/4/
/ST/MO
5)
/SO)
D
D
S
D
S
D
S
P
HG
CO
CO
ST
MO
ST
MO
ST
MO
SO
1
181 250
2
3
2
3
2
3
5
112 500
70 310
112 500
70 310
112 500
70 310
10 940
The value of the linear meter of frontage of the ground per zone, is representative of
the cost of the infrastructures and the networks closest to the area and is fixed as follows
for the neighbourhoods of cities and agglomerations of equivalent groups:
zone 1 = 26.250F/m
zone 2 =13,250F/m
zone 3 = 7.250 F/m
zone 4 = 3.750 F/m
zone 5 = 0 F/m
The cost of the square meter of construction per type, before weightings, is fixed as
follows; starting from the costs in the market, for constructions of the equivalent types by
architecture, materials and the level of definition.
type (01) one: high standing 181.250F/m ²
type (02) two: standing 112.500 F/m ²
type (03) three: standard 70.310 F/m ²
type (04) four: semi hard 31.250 F/m ²
type (05) five: temporary 10
57
In the cities and the agglomerations where the land registration was not done yet,
the values of reference of the grounds and constructions are fixed as follows for lack of
concrete information:
Groups
of Towns
CLASSES OF
NEIGHBOURHOOD
TYPES OF LAND
Water/Electricity
network
Tarred roads
Téléphone
Group 1
Group 2
Group 3
Very posh
Posh
Centre town
closePeriphéry
remotePeriphery
Centre town
Periphery
Centre town
Periphery
Group 4
1
2
3
4
5
6
7
8
9
10
four/four
four/four
four/four
three /four
one/four
two/four
one/four
two/four
Zéro/four
Zéro/four
Zones
VALUE
Blocks
neighbo
urhood
1
1
1
2
4
3
4
3
5
5
TYPES OF CONSTRUCTIONS
MATERIAL FINISHI TYPES
VALUES
NGS (3)
(D/S/P) (2)
(HG/CO (1/2/3/4/
/ST/MO
5)
/SO)
64 800
42 000
36 000
9 600
4 000
7 200
3 200
4 800
1 440
640
D
D
S
D
S
D
S
P
HG
CO
CO
ST
MO
ST
MO
ST
MO
SO
1
181 250
2
3
2
3
2
3
5
112 500
70 310
112 500
70 310
112 500
70 310
10 940
The complexity in this method of calculating administrative value of buildings cannot be
proven in an environment where reliable land studies practically do not exist. Tax administration
agents are unable to internalize the suggested step which we think can only bring about bottle
necks in the tax declaration procedures as well as the cost.
The national geodesic cadastre is not yet available; there are land maps here and there
but it will not be appropriate to use these in land taxation. What should be on project now should
be global and a national cadastre should be conceived and computerized before thinking of
putting in place land taxation.
Tax on property should first be managed at the local level.
II.1.4 Tax on gambling and entertainment
Tax on gambling and entertainment is heavy and not well defined. It is successively on the
budgetary plan of State taxes namely: tax on revenue and VAT (section 211 and 216 of GCT)
furthermore, it develops taxes to the benefit of the State and councils and whose base is also
constituted by turnover;
58
Section 215 of the Code provides for the issuing of a vignette corresponding to the
category of appliance so that it will be visible.
Section 219 also provides for the writing of a title to be posted on the appliance. Faults on
billposting of one or the other incur a fine of 25,000F per appliance.
Over taxation in this sector of activity finally discouraged all operators involved in this
sector and today, this activity is almost dead.
The CEMAC directive however removed gambling and entertainment from VAT. The
difficulty still remains great despite the transparency of the tax system, to determine the exact
turnover that can be realized from gambling and entertainment.
That is why we are proposing a flat rate on the tax on revenue according to the class of the
tourism establishment where the appliance will be lodged.
For example: an appliance lodged in a three or more star hotel and should pay 300, 000 F/
year and for a lower establishment, the amount may be 100,000 f/ year.
The various rates would correspond to special vignettes which will be posted on
appliances in order to identify them easily.
The advantage of this approach is that it reduces to minimum the time of passage in tax
services for various declaration operations; the documents will also be reduced and the cost of
taxes will be sufficiently adjusted. Well, in another way, this approach also facilitates the
drawing up of a temporary exploitation account of the investor and helps the State to make
more or less rational anticipation of tax revenue.
This approach also avoids heavy taxation and multiform of revenue which give the
impression that the Cameroon tax system is heavy.
59
II.2 local taxation
II.2.1 standard rate tax
The standard rate tax is entirely destined for the council budget. The standard rate
tax system applies to tax payers carrying out industrial or commercial activity whose annual
turnover is less than 15 million CFAF; as the name goes; the standard rate tax exempts the tax
payer who is liable to the payment of licence tax, VAT and income tax. This tax system is fixed
for small scale businesses. In order to measure the low contributing capacity of taxpayers
belonging to this system, four categories of the standard rate tax were selected as follows:
Categories:
A: from 0 francs to 20 000 Francs
B: from 21 000francs to 40 000 Francs
C: from 41 000 francs to 50 000 Francs
D: from 50 000 francs to 100 000 Francs
Each category is subject to communal deliberation ranging as above:
-
We realise generally that taxpayers classified under category A of the standard rate tax
are those who do not have an office (mobile vendors—bayam-sellam) with no means of
transportation.
-
Belonging to category B are those whose annual turnover is less than 5 million francs ;
-
belonging to category C are those whose annual turnover is between 5 and 10 million
francs ;
-
belonging to category D are those whose annual turnover is between 5 and 10 million
francs ;
Conditions to issue a standard rate tax:
-
a 1000 F stamped application ;
-
a photocopy of the taxpayers card ;
-
a copy of the identity card ;
-
a location map ;
-
a legalized lease contract.
60
It should be noted that taxpayers belonging to the standard rate tax system are many,
something which can prolong the treatment of this tax, because issuing it can take 3 to 4 days
II.2.2 Contribution of business and other Licences
The licence is the preliminary administrative document in the exercise of an activity
in Cameroon. The General Code of Taxation says that:
Art 159: every individual or corporate body of Cameroonian or foreign nationality
who runs a business in Cameroon, an industry, a profession not included in the exemptions
determined by the present Code, is subject to the payment of this licence.
Art 162 bis
The conditions to be fulfilled to obtain this licence are: (cf. Annex 1 form for the
conditions of obtaining of the licence at CSPLI Ydé):
- A stamped application (1 000 Fcfa)
- A photocopy of the taxpayer‘s card whose conditions for obtaining are:
 A photocopy ID card
 A photocopy of business registration
 A receipt of 1 500 Fcfa
 Minimum time granted 07 Days
- A location map
- A certificate of registration in the CNPS for which the file to be constituted consists of:
 a photocopy of the taxpayer‘s card
 a location map
 a photocopy of the business registration
 the control of location of the installations and administration tasks can take 03 Days;
- The registered lease agreement or the proof of payment of the Tax on the Landed
property (02 Days for one or the other).
The file was deposited at the taxation service, dues paid; file treated and can be
withdrawn in 2 Days.
61
Total cost of the procedure of obtaining the licence not included in the price of the
licence: 2 500 Fcfa
Any individual or corporate body authorized to carry out wholesale or retail for anything
or the manufacturing of alcoholic or non alcoholic drinks is subject to pay taxes.
- Alcoholic drinks : whisky, wines and beer ;
- And non alcoholic drinks: beer with no alcohol and fermented juices
Duties on licences are paid at the same time as the duties paid in cases where the sale
of beer is joined with another business.
The formal total cost of the procedure to obtain licence not including the price of the
licence or the licence itself is: 2 500 Fcfa
Minimum time allotted: 14 Days
Commentaries:
a) Duties on licences on non alcoholic drinks are superfluous to examination given that
we no longer know which sense to give to the word and the difficulty that the administration
in this service will bring to small shops ; duties on licence should in principle be reserved to
wholesale and retail or the manufacture of alcoholic drinks .
b) Tax payers think that business taxes are too high and do not consider dead periods
during some financial years ; studies carried out in some of them have helped to conclude
that business tax should be reduced and also fine solutions to the problems of those who, in
the course of the year did not make any turnover.
c) Technically, a big fracture was noticed when the standard rate tax had to move to
business tax ; in fact, from a turnover of less than 15 million, the standard rate tax will reach
100,000 CFAF. Conversely, a 15 million turnover will pay a tax of 52,000CFAF; the reason
given is that the tax payer of business tax is subject to pay tax on revenue which should
stabilize the tax inequality observed but we forgot that they are two different taxes paid to
two different budgets.
62
II.2.3 Additional Council Centimes (CAC)
An additional council centime is a non negligible part of takings mobilized by the State tax
chain for the benefit of councils. Proceeds generated by the additional council centimes are
made up by a 10% deduction from IRPP, IS and VAT, tax on gambling and tax on landed
property.
Section 2 of Decree no.2007/1139/PM of 3 September 2007 fixes the modalities of issuing,
recovery, centralization, division and transfer of additional council centimes from the taxes
mentioned above.
Additional Council Centimes are divided as follows:
-
10% to the State
-
20% to Feicom
-
70% to local Councils and Urban councils
The joint Order no. 0349/MINAT/MINEFI of 21 October 2001 enacts the procedures of
issuing and recovery of additional council centimes linked to taxes recovered through
spontaneous or anticipated payment.
These procedures differ when it comes to IRPP/IS or VAT. Division also differs according
to tax beneficiaries: Douala Urban Council (DUC), Yaoundé Urban Council (YUC), Local and
Urban councils.
A - Procedures to recover IRPP and IS additional council centimes :
A1. Assessment service of the Douala Urban council
a) Divisions of Additional Council Centimes :
- State
10%
- Feicom
20%
- Deduction at base DUC
14%
- centralized deduction Feicom
56%
Total
100%
63
b) Producing Issuing Certificates (IC)
1) Certificate no.1 to the State
principal tax + 10% from CAC
2) Certificate no.2 to DUC
14% from CAC
3) Certificate no.3 to Feicom
Feicom
20% from CAC
Centralized balance…
56% from CAC
A2. Assessment Service YUC
a) Division of centimes
- State ‗s share
10%
- Feicom‘s share
20%
- deduction at base YUC
28%
42%
Total
100%
1) Certificate no.1 to the State
2) Certificate no.2 to DUC
28% from CAC
3) Certificate no.3 to Feicom
Feicom
20% from CAC
Centralized balance…..
42% from CAC
A3. Assessment Service of Urban or Rural councils (UC), (RC)
a) Division of Additional council centimes
- State‘s share
10%
- Feicom‘s share
20%
- deduction at base UC or RC
25.2%
44%
Total
100%
1) certificate no.1 to the State
2) certificate no.2 to UC or RC
3) certificate no.3 to Feicom
25.2% from CAC
Feicom
20% from
CAC
Centralized balance…..
44.8% from CAC
64
B - Procedures for issuing and recovering CAC / VAT
While the assessment services of the Taxation headquarters is responsible for producing
three distinct issuing certificates, that of the Custom‘s headquarters produces only one with
distinct charges, depending whether it is the State‘s share, or for decentralized authority or
FEICOM.
B1. Assessment Service of the Douala Urban council
a) Division of Centimes / VAT
- State‘s share
10%
- Feicom‘s share
20%
- deduction at base DUC
14%
56%
Total
100%
b) Producing ICs or BLD
1) IC no.1 to the State
principal tax /VAT
2) IC no.2 to the DGT
10% from CAC/VAT
3) IC no.3 to Feicom
90%
- Feicom
20%
- DUC
14%
- centralized balance…..
56%
B2. Assessment Service of the YUC
a) Division of CAC/TVA
- State‘s share
10%
- Feicom‘s share
20%
- deduction at base YUC
28%
42%
Total
100%
65
b) Producing ICs
1) IC no.1 to the State
principal tax/VAT
2) IC no.2 to DGT
10% from CAC/VAT
90% from CAC
- Feicom
20% CAC/VAT
- Deduction at base YUC
28%
- Centralized balance…..
42%
B3. Assessment Service of UCs or RC
a) Division of Additional council Centimes /VAT
- State‘s share
10%
- Feicom‘s share
20%
- deduction at base UC or RC
25.2%
- centralized balance Feicom
44%
Total
100%
b) Producing ICs
1) certificate no.1 to the State
principal tax + 10% from CAC/TVA
2) certificate no.2 to UC or RC
25.2% from CAC
64.8%
C - Remarks:
From the analysis of issuing and recovery procedures of additional council centimes, we
realize that managing this tax is very complex; payment procedures involves a lot of work:
issuing of certificates and producing bills, all these bring about high cost of taxation for there are
a lot of documents and forms to be used and this is waste of time given the manual work that is
to be done (filling issuing certificates and producing bills).
This procedure, which undoubtedly during the first years of the economic crises marked by
tension in State funds, had the merit of making available necessary funds for the functioning of
State authorities and FEICOM, no longer seems to be appropriate at the time State funds have
improved.
66
The prevailing management of additional council centimes, especially their centralization in
FEICOM presents the loophole of the absence of the legibility on the management of funds
destined annually for the local government through this organ. The division criteria are poorly
defined and nothing shows that they are adequate for the nation‘s sector development plans.
Simplifying issuing and recovery of additional council centimes procedures means that the
product should be centralized at the government department in charge of public finance, which
will in turn break down the share of each beneficiary organ through budgetary charges; this
break down of funds meets the needs studied, censured and planned for each locality.
II.3 Specific taxation:
The example of the forest sector:
Fiscal and economic audit realized with the support of the World Bank in 2005 brought
to light some malfunctioning and constraints in the forest sector that this study had to dwell on
the simplification of tax declaration and payment procedures; we will cite among others:

modalities to determine the felling tax are complex due to the need to reconstitute
the volumes felled by a 20% addition to the volumes of tree trunk;

secondary species of the first and second categories are less competitive due to
the weight of taxes, especially factory tax where operators think the rate is too high;

factory tax also poses a problem of efficiency in the recovery process ;

unproductive areas in the Annual forestry unit are taxed ;

determining the taxable base of special products is not mastered because of lack
of precision in the modalities of determining the tax base ;
The mode of taxation in the forestry sector in its entirety is obviously very complex and
incoherent; forest taxation is divided into distinct segments which are difficult to control by the
tax administration; consequently, economic operators who want to invest in this sector find it
difficult because the law is incomprehensible, unpleasant, or too long to satisfy.
67
That is why we wish to have a simple tax system, which, due to circumstances may be
divided into two levels:
-
Generally, all companies exploiting forest products should be subject to pay the
same duty on revenue and VAT;
-
But given the constraints and the need to regenerate the forest which is a problem
to felling trees, a specific annual tax may be levied on the hectare exploited for each cutting unit
given. The division of the tax product may continue between the State, councils and the village
community with the understanding that part of the fraction paid to the council will help to
regenerate the forest under the control of the ministry of Forestry.
-
This tax should concern all species from exploitation; this tax approach helps the
State to have a reading close to reality.
II.4 Parafiscal funding :
II.4.1 Contribution to “Crédit Foncier” :
Contribution to Credit Foncier was instituted in 1977 to help the Credit Foncier of
Cameroon to give financial support to the realization of projects to promote housing in
Cameroon. Originally it was understood that after 10 years, this contribution will be suspended
because the institution will be expected to have a running budget already.
It should be noticed that contributions to CFC continued to a very past where it received
financing from other State companies in matters of housing like SIC, MAETUR and MAGZI who
also received subsidies from the State
It will be needless coming back on the original mission of CFC, it was not well defined.
Today, this institution has suddenly turned into a bank with the argument that it has too much
liquidity; it does not have the expertise and rigour of a bank, nor does it have affectio societatis,
its public administration methods do not have performance indicators etc.
However, we still wonder why this contribution is still going on though it is heavy for tax
payers. Tax payers do not gain anything from it; it will be advisable to suppress it altogether.
68
Financial profits will be sensitive but it is more important to simplify its declaration
procedures: lay particular emphasis on monthly declarations and respect declaration obligations
as stipulated in the publication texts of the law to be avoided henceforth.
Section 9 : any individual or company subject to contribute to Credit Foncier of
Cameroon, is supposed to deposit every year at the Inspectorate of Taxation following the
deadline of declaration of results, a monthly or quarterly statement, according to the case, the
amount of salaries paid, the amount deducted from the source, date and number on the receipt
of each payment.
Section 10: Declaration after the date fixed in section 9 above incurs a fine of 10,000
FRS.
Any employer that does not pay his contribution before the date fixed in section 7 of
this Law incurs an interest of 1% a month or a fraction of the month that has not been paid.
Section 11 : Insufficient declaration incurs the following sanctions :
1- If the good faith of the payer is presumed or established, a 1% interest of the unpaid
amount will be paid.
2- If the good faith is not established, the unpaid duties will be increased by 50%. This
increase can go up to 100ù if there is any fraud.
Section 12 : If the amount deducted from employees‘ salaries is not paid, the sanction
is 25% and a 10% monthly interest with a minimum of 1000frs and maximum equal to 100% of
the amount from deductions.
With regard to employer‘ contribution, only a penalty of 25% is paid.
Section 13: The tax payer, who, after formal notice, does not declare within a
deadline of 30 days, will not be consulted before being asked to pay duties of 50%. This
increase can go up to 100% if the payer does not show proof of good faith.
Suppressing contribution to Crédit Foncier will do away with all these constraints.
69
II.4.2 Contribution to National Employment Fund
The NEF was set up on 27 April 1990 within the framework of the Structural Adjustment
Programme (SAP) in the Social Dimension of Adjustment (SDA) ; when the public service
stopped recruitment and there was privatization with the consequence of mass lay-offs (about
45,000). This led to the setting up of this Fund whose general mission was to promote
employment through the following:
-
receiving and directing job seekers
-
collecting, treating and broadcasting information on the job market
-
bringing together the offer and demand for jobs
-
integrating young Cameroonians looking for first jobs in the production circuit
-
reintegrating redundant workers from companies of the public sector, State-owned or
private sector for economic reasons
-
drawing up, financing and following up of training programmes, support to the drawing up
of micro projects etc.
Implementing these programmes needed many faces of financing on the part of the
government and international donors; but generally, NEF financing was planned for four(04)
years, 1990-1994
-
direct State subsidies :
1 219 000 000 FCFA
-
African Development Bank (BAD) :
3 426 000 000 FCFA
-
The World Bank (BM) :
2 268 000 000 FCFA
TOTAL
6 913 000 000 FCFA
Seen from this angle, the NEF was not very different from an economic programme
conceived for a well determined period. But added to this financing the State introduced a 1%
deduction from the salary paid by employers and collected by the tax administration to pay to
the Fund; parafiscal funding of this contribution was created without stating any reason.
NEF is boasting of some achievements and maintain that the budgets allocated remain
insufficient with regard to the mission ; the joint Minefop/Minfi Order no. 148 of 14 April 2009
authorizes the Fund to deduct directly from the taxation Centre the charges, which till now were
deducted by the Ministry of Finance. The fear is that the tax burden on tax payers and the new
paperwork to be put into circulation will be reinforced.
70
Apart from macro economic considerations such as the absence of strategies or maps
to follow up the envisaged programme according to available resources, on the one hand and to
carry out evaluation to reorganize activities, on the other hand, it is the multiplicity of taxes and
their management constraints that should be decried.
II.4.3 audio-visual charges :
Audiovisual charges were created in 1989 to contribute to the development of
audiovisual activities in Cameroon. At the beginning, audiovisual charges were treated as
advance on the tax on revenue owed by the payer, until 2004(finance Law no. 203/017 of
22/12/2003) when it became a full tax.
The same as contribution to Crédit Foncier, creating obligatory contributions which are
not in the assigned missions was not a good managerial policy; the government can continue to
give out subsidies, which will help it have performance indicators for its governance
The State budget should be unique and its financing should go through well defined
channels. Putting in place fragmented taxes will not show the exact weight of taxes more so
because we do not master the needs of the financing of the sectors under our care. CRTV can
be financed through subsidies or directly through the State budget; but audiovisual charges
should be replaced by a well drawn up budget which takes into consideration domestic
resources and financial needs to be met by the State.
The economy of this measure is enormous and in various orders:
 it requires a more rational management of the beneficial structure (managing property),
 it makes the tax system more legible
 it saves time and money for economic operators (contribution of business taxi s divided
into two and salary contributions are reduced to competition),
The following declaration obligations will be done away with :
71
(1) Audiovisual charges owed by salary earners are settled according to the declaration
made by the employer through forms provided by the administration. These forms can be
obtained from the Treasury or the General department of taxes.
The declaration comprises the following:
- name, surname or company name ;
- address ;
- profession ;
- taxation period ;
- amount of audiovisual charges deducted from the source.
It is certified, dated and signed by the payer or his authorized representative.
Three copies should be submitted with payment receipt at the Treasury.
Failure to declare is sanctioned by a fine of 10 000 francs CFA
(2) Any individual or company subject to pay audiovisual charges should, every year,
submit to tax services, following a deadline of declaration of results, a monthly statement and
individually, the amount of the corresponding audiovisual charge, date and the number on the
receipt of each payment.
III. SIMPLIFICATION PROPOSALS
72
After having drawn up a map of the Cameroon tax base, and after examining some tax
payment and declaration procedures sampled, we have come up with the following points which
complement each other.
-
The Cameroon tax system is characterized by specializing taxes at the base almost
turning it away from its traditional mission. This justifies the weight of other taxes (local taxation,
specific taxation and parafiscal funding) on State taxes.
-
consequently, it creates taxes following the growth of economic demands ;
-
But paradoxically, there is also a multiplicity of taxes on the same item and to the same
beneficiary or levied on the same tax payer ;
-
This varied taxation prevents the mastering of the tax load felt by the tax payer ;
-
management tasks induced by them are a burden to the system
-
The body of procedures that bring about all these taxes hinders the rational management
of the system as a whole.
Responding to the urgent need to simplify the tax payment and declaration system, concrete
proposals need to be brought against these too many taxes at the same time, keeping the
budget constant and stable.
It is therefore necessary to determine how it is possible to join, arithmetically, taxes of the
same nature, that is, those that resemble either because they are on the same item or because
they are geared towards the same budget.
But the desired simplification is also done by suppressing some taxes, whose costs and
management are not profitable.
Lastly, administrative organization with all the conditionality and work posts should be
revised so as to suppress some bottlenecks which slow down procedures.
73
We will not forget, in this study, to make proposals that include the whole tax system on the
accompanying instruments in this simplified management.
To preserve the legibility and coherence in the analysis that follow, we maintain the
methodological approach adopted, making an analysis per tax sector, that is, to follow the
numerical order in the summary table of the tax base in Cameroon.
III.1 State taxes:
III.1.1& 2 – Tax on Revenue:
Tax on revenue as seen above, is comprised of tax on companies and tax on individual
revenue; they are paid and declared in the same way, that is, by monthly deductions and paying
the balance at the end of the year.
Apart from the difficulties that can occur at declaration and payment and which are
general, the particularity with regard to revenue is the too much work of managing deductions
on purchases whose existence cannot be explained now.
In fact, the principle of deposit was to allow the State to continuously have, throughout
the whole year, necessary resources for its functioning; the method will comply with the
obligation to pay minimum tax at the end of the year.
Introducing deduction on sales had the effect of creating an imbalance in the
mechanism if it came to generate huge tax loans at the end of the year for some companies,
which have not had respectable results, thus, the birth of the debate on deposits and deductions
on purchases.
Since the finance Law for the 2009 financial year, a solution was found and which
henceforth authorises tax payers to deduct deposits during monthly declarations. So, we can
conclude that the principle of contemporary taxation so desired has become obsolete;
conversely, the system preserved the burden in managing deductions on purchases and the so
much decried situation of tax loans has come back.
74
Companies which collect deductions are obliged to declare and pay each month; this
brings about an increase in the work load in the internal management of the collecting company
and cash flow problems for companies that constitute the stocks.
Commentaries against deduction will equally come from the many rates it has and their
reasons, in fact, there are at least three rates for some particular cases:

It is a 5% deduction for forestry companies which do not have tax payer‘s card
while the control of owning a tax payer‘s card can be done in some stages of
the tax
declaration procedure without it causing any financial damage ;

It is also a 5% deduction for operations carried out by any company who does not
have a tax payer‘s card while according to the law, it was an issue of singling out the activities
of the forest sector ;

A 1.5% deduction is done on companies who levy tax on individuals under a tax
system different from the real ;

A 0.5% deduction is done for filling station operators when they buy petroleum
products;

A 0.5% deduction only for exporters of basic products as if the law wanted to
discourage this activity ;

A 0% deduction is made for industries registered and submitted under the real
system for purchases destined for exploitation.
Proposal 1: suppressing deductions on purchases.
III.1.3 – Special tax on Revenue :
No remark was made.
III.1.4 –Value Added Tax :
75
A critical examination of VAT in its declaration and payment mechanisms revealed that:
-
With regard to councils, the rate was too high; the CEMAC directive provided for a
single VAT rate between 15 and 18%; however, theoretically, the VAT rate stands at 17.5%,
while in reality, it stands at 19.25% taking into consideration additional council centimes.
-
considering local economic realities, the single rate punished some sectors of
activity.
In fact, socially, the single rate does not make any difference between subsistence
consumption and luxury consumption in homes; and economically, it doe not help to sustain
some economic sectors. To compensate for this difficulty (for plurality of rates) to determine the
boundary between the respective fields of application, it will suffice to state the field of
application of the reduced rate and leave the rest at a normal rate.
-
Managing VAT loan refunds takes a long time as seen above due to the
centralisation of the refunds procedure; consequently, it is advisable to envisage
decentralization of refunds at the regional level following the number of files to be treated.
Section L122 of the GCT provided for competences relating to tax relief that we could
transpose into refund procedures for greater diligence; treated files will have precise dates as
the ones in the central services for control and validation.
Proposal 2:
-
Reduction of the general rate from 19.25% to 18% to give in to demands of the
community.
-
Instituting a rate reduced to half of the normal rate to promote some sectors like
real estate, restaurant or mass consumption, banking and finance sector and that of agriculture.
-
Transfer of power to reimburse VAT loans to Heads of Regional Centres and the
Head of the department of big companies for files of less than 30 000 000 FCFA.
III.1.5 – Land Tax on Real Estate :
76
A critical examination of the method of declaring land tax and more precisely, the
method of determining the administrative monetary value of taxation of buildings showed the
difficulty faced to base this tax, the reason being the absence of an elaborate land register.
However, at the local level, councils have a tool competent enough to determine the
value of buildings; at least those buildings built using a building permit. Furthermore, the
municipal administration is near enough to taxation authority that it is in a good position to
handle land taxation.
Lastly, the ongoing administrative decentralization would put at the disposal of the local
authority financial resources which they will manage themselves; this not the case with the
detached action of the tax administration.
From then on councils merited benefiting from technical assistance from the tax
administration but we will retain as means of the taxable base:
-
the tax payers‘ declaration,
-
value declared on the building permit,
-
value given through a building base to put in place and up date every year after
municipal deliberation
Proposal 3:
-
while a national land register is being drawn up, the liquidation and recovery of the
land tax are henceforth done by the local authorities under the supervision of the tax
administration. Monthly statistics should be communicated to the Directorate General of taxes
for consolidation.
-
The rate of the land tax should be graduated to encourage and not discourage
huge investments in Real Estate
III.1.6 – Registration duties :
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The assessment made on the negative impact of registration duties on the
development of business was essentially on the burden of this in the constitution and increase
of companies‘ capital.
According to all economic operators interviewed on this issue, they think that the
formality for creating a company is very expensive; but looking at it critically, the fees that are
paid in this sector, that is, from the notary‘s fees to publishing and publicity fees, it is only
registration duties that seem exorbitant and can discourage the desire to create a company or
increase capital; we may be tempted to conclude that the solution to the problem will be to
reduce the graduated duties of company acts.
But in reality, it is section 544 on graduated duties which seem to be the cause of the
pressure and imbalances observed; in fact, this section provided for five rates which may be put
in graphics so as to be well interpreted.
-
2% with a maximum of 750, 000 francs for capital between 0 and 750, 000, 000
-
1.5% with a maximum of 1, 500, 000 francs for capital between 750, 000, 001
francs,
and 1, 500, 000, 000 francs
-
1% with a maximum of 3, 000, 000 francs for capital between 1, 500, 000, 001
and 3, 000, 000, 000 francs
-
0.5% with a maximum of 5, 000, 000 francs for capital between 3, 000, 000, 001
and 5, 000, 000, 000 francs
-
0.25% with a maximum of 2, 500, 000 francs for capital above 5, 000, 000, 000
francs.
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Commentary : Despite the vagueness of this plan, it is explicit enough to show at least
two things:
- Firstly, there is a strong progressiveness of tax on capital varying between 0 and
37,500,000 frs; this is however the zone for creating enterprises given the capital situation of
our economy. But it is only inside this zone that there is a 2% rate of tax because, above
750,000,000, all capital movements are practically done tax free.
This means that for most creators of companies in this investment zone, the tax burden is
too much.
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- The inflection points of the curve correspond to the limits of taxation and we notice that
the taxation differences are great from one phase to another; this means that the scale itself is
not incentive to encourage capital increase.
The empirical solution from this observation is that which consists of reducing the taxation
curve at the same time preserving its profitability.
The second graph attempts a comparison between the graded scale and a proportionate
rate that will be applied to movement of capital:
1. First remark
The right hand red was drawn from point H coordinates (0.0) and (6 billion, 12075
million) ; mathematically, it is represented by this equation:
y = 0.002125x being a rate of tax equal to 0.21%
It was drawn using only one of the identifiable points of the tax curve in a bit to compare
graduated taxation and proportionate taxation.
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Let us take the right hand red as hypothesis analysis that is, a tax on the constitution of
companies and increase in capital to a 0.21% proportionate rate :
We notice that from O to A, capital between 0 and 352, 500, 000,the proportionate taxi s
not profitable and the loss to State is shown in the first grey colour.
But immediately after, that is between A and B, the taxi s in its positive profitable zone
(coloured in yellow) with regard to graduated tax. The advantage will be alternative up to 6
billion from which the proportionate taxation will finally take a step on the graduated tax in terms
of profit.
The merit of this taxi s that it is attractive to economic operators because of the low rate
which borders on tax exemption but the graduated scale uses only high levels of capital;
consequently it will be economically advisable to abandon the graduated scale when creating a
company and when increasing capital to adopt a proportionate rate and to this effect, we
propose a 0.25% rate.
2. Second remark :
A detailed study on the effects of registration duties on the tax burden leads us to make
general proposals in coding with regard to precisions to be made in some sections of the Code.
In fact, now, registration duties do no longer distinguish between acts to be presented
obligatorily at declaration and those that are optional ; the General Code on Taxation makes a
simple but exhaustive list of acts to be registered and applicable rates but do not state clearly
the obligation to register some or not.
Taxation thus levied regularly gives room to expensive litigation in terms of time and
money, when they are not paid by tax payers, which further increases the tax burden on them.
3. Last remark :
In a bit to simplify tax declaration procedures, the tax administration, for some time now,
is harmonizing declaration duration which will simplify declaration habits by bringing them
together at the same moment, and it will help the administration to bring together all the
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procedures in one form. Work done here gave very encouraging results but there are still some
that need to be reviewed.
If we keep the business declaration deadline for the first two months of the financial year
for budgetary reasons or if we ignore the deadline for the payment of the windscreen licence in
the month that follows the beginning of the fiscal year, it will be good to also harmonize with
others, the deadline for the declaration of proceeds from games and slot machines, stamp on
publicity, veterinary tax on local trade and duties, charges and taxes on the forest sector.
Especially the veterinary tax on local trade which is calculated on the basis of business
contribution, it will be absurd to prescribe different deadlines for one or the other.
Proposal 4:
-
Exemption from registration duties and from pure and simple contribution to the
constitution of companies’ capital and increase other than heavy contribution
-
Rewriting section 276 on duration and acts which should be registered to give
details on the acts to be presented willingly at the formality services and those that are
obligatory.
-
Larger harmonization of the declaration deadline for all taxes.
III.1.7 – Tax on gambling and entertainment:
The CEMAC Directive recommended the exemption of gambling and entertainment
from VAT ; that is why to conform to this recommendation and lessen the tax on this activity, we
propose taxation on revenue in the common law system for casinos and gambling and a flat tax
according to the class of tourist establishment where that the appliance will be lodged (babyfoot, flipper, slot machines).
82
Proposal 5:
-
Proceeds from gambling and entertainment are exempted from VAT.
-
Proceeds from gambling and entertainment pay tax on revenue in the following
way :
 Proceeds from casinos :tax on revenue following the common law rate ;
 Annual tax on gambling, optional payment of tax on revenue, shall be
calculated according to the classification of the tourist establishment where the
appliances will be installed :
Tax / year
3 star Hotel
Baby foot
2 star Hotel
1 star Hotel
others
80 000
60 000
40 000
20 000
Flipper and video
games
120 000
100 000
80 000
40 000
Slot Machines
500 000
300 000
200 000
100 000
III.1.8 – Axle Tax :
In order to reduce to minimum tax declaration activities, it was advisable to bring
together all the obligations that have anything to do with the transport sector in a single
declaration:
Proposal 6:
The axle tax should be declared in a single document containing all the charges listed
for the transport sector.
III.1.9 – Stamp duty :
We had a total of 14 different stamp duties; in the simplification of procedures, it was
necessary to bring them together by affinity (for example :( automobile tax and car document
tax), to delocalize stamp duty on advertisement and leave it to the local authorities and to
propose the suppression of transport contracts.
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We did not have any comment to make after examining ten(10) other types of
taxes :dimension stamp, stamp on national passports, stamp on visas for foreign passports,
stamp on the national identity card, stamp on resident permit, stamp on resident‘s card, airport
stamp, graded stamp, stamp on permit to carry arms and stamp on hunting permit
Proposal 7:
-
The stamp on car documents and automobile stamp are both in the transport
sector and should disappear individually in order to give way to a single charge for road users.
-
Given that the law maker for some years now has not reactivated the stamp on the
bill of lading in sea transport, it will be fair that the stamp on contracts on road transport should
also disappear.
-
Instituting an annual charge on transport, comes from the tax certificate which
contains deductions formally done on road usage: stamp on car documents, automobile stamp,
stamps on driving licence, stamp on aptitude certificate and axle tax.
This tax certificate shall be needed at the same time as custom duties for imported
vehicles.
III.2 Local taxation :
III.2.10 & 11 Standard rate tax, contribution from business and other licences:
Remarks made on this chapter lead to the following proposals:
Proposal 8:
-
Suppressing the dimension stamp on applications for licence and standard rate tax
-
Note the rate of the tariff of licence taking into consideration proposals to transform
audio visual charges included in the licence in council tax. The tariff of the licence will be
multiplied by four in order to maintain the progressive passage from the standard rate tax to
licence.
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-
Provide a clause to lighten issues for tax payers of licence but who had not made
any turnover in the course of the financial year; the proposal is to make them benefit from a flat
contribution whose amount shall be determined legally.
-
Classifying into two groups, alcoholic and non alcoholic drinks, is no longer in the
former rating of the Code which provides six different ratings according to the category of
licence or of the standard rate tax.
III.2.12 – Additional council centimes :
A critical examination of additional council centimes showed that :
-
The issuing and recovery of centimes were so crowded due to the multiplicity of
documents to be made(3 issuing certificates and 3 payment vouchers)though this operation
could be done in a single way but with various charges;
-
The management of CAC by a third party (FEICOM) involves the burden decried
of the tax system all in all; furthermore, the division done by this organ do not seem to obey the
criteria set before.
-
Lastly, CACs are still a source of difficulty when refunding VAT loans when the
CAC is refunded at the same time with the principal of VAT on the State budget have already
been sent to beneficiaries as soon as they are paid in; the State should then turn against
beneficiaries and demand for the CAC refunded; this procedure was not provided by the laws in
force which is a loss in the budget and it is not a small loss.
« Simplifying issuing and recovery procedures of additional council centimes implies
that the proceed be centralized at the level of the Treasury, which will be responsible for
breaking down the share of each beneficiary organ through the mechanism of budgetary
charges; the breaking down of corresponding funds to needs studied, listed and planned in
each locality”
This proposal made after the critical analysis of CAC is no longer satisfactory with
regard to the last remark made above; consequently,
Proposal 9:
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Breaking CACs into different certificates proved to be heavy in tax declaration
procedures, so, the proposal is that this repartition be done rather at the Treasury; however, the
unit for refunding VAT loans should, after each refund operation write a receipt to FEICOM for
refunded CACs.
III.2.14, 24 & 25 – Tax on arms, transhumance tax,Transit tax :
The gun, a familiar name for arms, was, for a long time, one of the distinctive signs of
social success in a man; but owning a gun was not encouraged because of the violence during
the fight for independence. Tax on arms served both to collect tax from those who were able to
pay and to discourage any desire to have one.
Trade on firearms was practically liberalized but formerly as now, tax on arms has
never contributed significantly to the budget partly because of the absence of the mastery of
their precise and permanent identification and partly because of the weakness of the tariff
applied to them.
The little gain compared to the cost of managing some taxes really leads to their
suppression; the same argument can be applied to also propose the suppression of the
transhumance tax and transit tax because there is no practical way to base and recover them.
Proposal 10:
Tax on arms, tax on transhumance and transit tax are supposed to be suppressed
because the profit from them is insignificant
III.2.15, 17, 19, 21 – Felling Tax, Duty on place, Tax to occupy parks, Tax on
entertainment:
The three taxes above are closely linked with regard to the development of the towns in
which they are applied; Douala and Yaoundé recently put up toll gates in public parking spaces
without referring to an already established law but leaning solely on the authorization of the
86
deliberating organ of the municipal council. So, the local authorities were able to show one of
their prerogatives to manage their towns, defining the outline of this urbanity. The debate can
easily lean toward the definition of the exercise of democracy and decentralization advocated
for now in Cameroon.
In fact, taking only the example of the slaughter tax, fixed between 250 and 1,000
CFAF, we are blocked by the profitability of a heavy investment on modern slaughter house with
slaughter chains, conditioning and bagging robot, modern cold stores, etc.
Will it not be
appropriate to leave it to the council to fix the amount of taxes relating to this investment?
Another example is with regard to the taxation on investments, which, according to
Section 18 of Decree no.2002/2175/PM of 20 December 2002 to fix the minimum rate and
recovery modalities of some indirect council taxes, distinguishes profit making habitual
entertainment and occasional entertainment:
Habitual entertainment is a taxable activity which falls under common law taxation; its
taxation following the provisions of the decree above is double task with the common law tax
system and increases the tax burden on economic operators. Consequently, this type of
entertainment should no longer be carried out at the local level as opposed to occasional
entertainment, whose taxation should be fixed by the municipal council
Proposal 11:
-
Slaughter tax, duty of place, tax to occupy motor parks and tax on occasional
entertainment are indicative of the market on which the local authority should lean to increase
its takings according to environment and economic base; it is abnormal to fix taxes at the
central level; if need be, the proposed rates should be retained .
-
Tax on habitual entertainment should be suppressed
III.2.22 – Tax on Publicity and stamp on publicit
87
Tax on publicity is ambiguous now because of the poor division of roles and powers
between the tax administration and the local authority:
Section 592 of the GCT authorizes the tax administration to put a stamp duty on
publicity (at a 2% rate) by the following:
-
stickers, tracts and leaflets,
-
advertising signboards,
-
advertisement through the newspaper,
-
Advertisement through the radio and television
-
Advertisement through the cinema, Advertisement by vehicle with loud speakers
At the same time, the above Decree in section 23 provided for the benefit of councils, a
tax on advertisement with the help of the following:
-
signboards, publicity, banners and lighted signs
-
vehicles with loud speaker,
-
vehicles without loud speakers,
-
public address system in shops
The tax administration is not very interested in stamp duty on publicity apart from the
publicity made through the newspaper, mobile telephone and television channel operators that
tax control seize from time to time; one of the reasons certainly being the blockage which
created up to a recent date, Cameroon Public Expansion (CPE) in the collect of this duty. But it
happens that the administration finds it difficult to master this matter which can develop and
expand without leaving any traces.
On the other hand, leaning on the advertising directors, had always handled this matter
at least with regard to publicity signboards; consequently, it is advisable, to avoid double
taxation and constant follow up, to give tax management of publicity through signboards,
publicity, banners and lighted signs to local authorities where this publicity is being done.
Other forms of publicity, like tracts, stickers and leaflets, newspaper publicity, radio,
television and cinema publicity should remain in the domain of the tax administration which has
power to carry out tax control; the law however, through the newspaper, the media and authors
88
of tracts and leaflets, legal charges of this contribution even if the real charge may be the
demander of service for whom the stamp costs 2% of the cost of the service.
Proposal 12:
-
Stamp duty on publicity managed by the tax administration concerns al forms of
publicity other than that on publicity through publicity signboards and lighted signs. The
harmonization of procedures of duration and declarations is however necessary to meet the
deadline of the 15 of the month following the quarter.
-
Tax on publicity through signboards and lighted signs becomes the exclusive duty
of the local authorities where it is being done.
III.2.13, 18, 20, 23, 26 & 27 – Communal tax, building permit, duty for temporary
occupatin of public road, Tax on damage done on the road, duty on comunal
stamp,renting of shops in the market :
There are no remarks on these contributions/taxes; they should then be maintained.
III.3 Specific taxation :
III.3.1. The petroleum sector:
The description of the tax on the petroleum sector gives room to doubts and lack of
mastery of taxation;
Apart from odd slight difference, we will think of common law taxation because
companies in this sector are subject to tax on companies but at a rate varying between 35 and
50% according to the contracts; they normally pay all their contribution of registration duties,
deductions on salaries or land tax.
But apart from, this system, which departs only partially from common law because of
the profits given to some exemptions especially that of VAT on the supply of goods and services
89
of all sorts, the petroleum sector is plagued by other charges, the most important being a
superficial charge and a proportional charge on production.
No study has yet been carried out to analyse the resulting effects on tax expenses
recorded because of the tax opportunities given and the new income generated by particular
taxes. In the same way, we could not depend on an economic logic to explain this juxtaposition
of taxes, whose effects, according to the best hypothesis, could neutralize each other but the
most obvious effects are the extra work in the management of companies.
So, we think that, for lack of good reasons to justify particular taxes or putting in place
exorbitant tax opportunities, the tax law as in the General Code of Taxation should be sovereign
and applied in any event.
Proposal 13 :
Tax on the petroleum sector should be a common law tax with exceptions that the
administration will define case by case.
III.3.2. The forestry sector:
The method of taxation in the forestry sector as we have noticed was very complex;
Law no.94/01 of 20 January 1994 on forestry, fauna and fishing defined the main taxes
applicable to the forestry sector in addition to the common law tax paid by companies in this
sector: felling tax, annual forest charges, exploitation surcharge, factory tax and relocation tax.
The need to have a simple tax system subjects companies exploiting in the forestry
sector to pay common law tax with tax on revenue and VAT ;
A specific annual tax could be imposed inclusively on the hectare exploited for each
unit cut done and the division of the proceeds between the State, the council and the village
community; a part of the fraction paid to the council will help regenerate the forest under the
operational control of the Ministry of forestry.
Proposal 14:
90
Tax on the forestry sector should be a common law tax with the exception that an
annual tax will be imposed with the aim of contributing to forest regeneration. This tax,
calculated on the FOB value of logs could be the arithmetic total of five taxes paid by
companies in the sector, compared with felling tax, its rate could increase from 2.5% to 3%.
III.3.3. The mining sector
We have noticed the same tax organization in the mining sector as that in the other
sectors, especially the petroleum sector: many taxes whose amounts and recovery modalities
are determined by the law (fixed duty on research, inclusive charges, ad valorem taxes on
mining products). This proves that taxation in these sectors remain uncertain.
At the same time that the Mining Code gives exceptional advantages to owners of
contract for mining exploitation, it is stated that mining exploiters are subject to paying common
law taxes.
-
Exemption from registration duties relating to mining operations with the exception
of those of lease contracts and renting of flats;
-
Exemption from the following taxes:
 Contribution from business licences
 tax on companies (TC) ;
 income tax on profits from commercial and industrial handicrafts(IRBRAI) ;
 tax on securities (IRCM) ;
 Special Tax on payment abroad (TSR) ;
 Value added tax (VAT) ;
Advantages cited above are also given to subcontractors and suppliers of research
permit.
Proposal 15
91
Tax on the mining sector should also be a common law tax with adjustments done by
the tax administration when necessary.
III.3.4 The fishing sector
Tax on authorization for industrial fishing is a kind of entry duty paid by any individual or
company wanting to invest in this activity; consequently, there is no remark to be made on it.
III.3.5 The livestock sector
Exploitation tax and veterinary tax at production are not major problems except that
they encounter difficulties of applicability.
The low output expected and determining the tax base with regard to exploitation
makes it uninteresting.
Veterinary tax on local trade is fixed at 12% of the business licence amount or that of
standard rate tax, though it applies essentially to cold, frozen, salted, smoked or canned
products; the business licence on a global turnover, a trade exclusively geared towards animal
production is needed for the right tax to be imposed; apart from that, if this trade is in proportion
the least important in the global turnover, this tax is punishing the tax payer and increases the
price of mass consumption.
The two taxes have no great influence on the problems of the tax payer and the
administration; without much prejudice, they may be replaced given that their follow up is very
vague in the collecting department (the revenue office in the Ministry of Livestock, fisheries and
animal industries).
Proposal 16
92
The veterinary tax on local trade, which is constantly showing a deficit, may be
suppressed to further facilitate the tax system.
III.3.6 The Tourism sector
Exploiting a tourist establishment or site, travel organisation agencies, a professional
tourism training centre and hotel management is subject to an exploitation licence. Issuing an
exploitation licence enables the obtaining of a duty the same as a tax, given its importance.
Thus, any person with an exploitation licence for a classified or non classified tourist
establishment, travel organisation agencies or tourist site is supposed to put up a permanent
sign board in front of his establishment, site or structure, issued by the Ministry of Tourism.
Issuing a sign board will enable the establishment benefit from an annual rate from the
government which can also be a tax.
Dues and charges mentioned above are paid at the revenue office in the Ministry of
Tourism without taking into consideration the other duties that the same establishments are
supposed to pay to the tax administration, the local communities or elsewhere.
Since the duties and charges for exploiting tourist establishments are paid annually, it
would be better to register them as licence; bringing together tax formalities will have the
advantage, on the one hand to appreciate easily the weight of this contribution and on the other
hand, will be a facilitating factor to time saving and can be registered in the tax management.
In this way, we will avoid the juxtaposition of taxes on the same activity when we
observe a simulation in the duties and charges at the level of the State and local community.
Proposal 17
Exploitation duties of a tourist establishment and annual charges for signboards should
be the responsibility of the tax administration in order to avoid too many activities and
deductions, which are heavy on the tax system.
III.3.7 The Road sector
93
As in the simplification of procedures, a single document could replace the axle tax and
windscreen licence which, during its first issuing, will have a stamp on the vehicle document;
this will be a permanent document that just needs to be renewed.
The advantages shown above as well as the fact that this form of taxation will give a
clearer idea of the tax cost put in place on property at the same time that it will give information
on individual heritage. It will be a kind of road certificate-being a way of ideal capitation for the
road tax. The programme to secure road takings will see its weight and attributes reinforced and
the State will distribute proceeds according to beneficiaries.
But another advantage, not the least, will be with regard to the profits that the
government will have in the orders from abroad and the frauds and forging of all sorts of facial
value.
Proposal 18
Creating a road circulation licence; the duty on the road circulation licence will be the
arithmetic sum of the following duties:
-
stamp on the vehicle document,
-
automobile stamp,
-
axle tax.
When the duty is paid a receipt is given.
III.4 Parafiscal funding
III.4.1 Contribution to Crédit Foncier
III.4.2 Contribution to National Employment Fund
III.4.3 Audio visual charges
III.4.6 Additional Centimes of Consular Chambers
Proposal 19
94
Decrees to institute contribution to Credit Foncier, to National Employment Fund, Audio
visual charges as well as additional centimes of Consular Chambers should be brought back.
Being institutions to carry out regalian missions for the State, CFC, NEF and CRTV should be
financed by budgetary allocations on the basis of taxes collected by the State. Parafiscal
funding put in place to their benefit looks like a kind of Danaide’s barrel which can never be
filled but which are costly directly or indirectly to the running of the whole system.
III.4.4 The tax payer’s card
Law no. 95/010 of 1 July 1995 stated clearly that proceeds from running the tax payer‘s
card are allocated to the functioning of the structure in charge of issuing it, which is no other
than the tax administration ; is this the reason why the renewing of a tax payer‘s card is done
every two years and costs 500CFAF We will avoid any simulation that will lead to imagine that
takings are done only when issuing and renewing this card but we want to think that the tax
payer‘s card remains an identification document that helps to localise the tax payer ; as such a
respectable length of time should be given to this card to give it all the guarantees that it will
inspire and help ease administrative formalities ; we are therefore propose the following with
regard to the duration of the validity of the tax payer‘s card :
Proposals 20
The validity of the tax payer‘s card is fixed at five (05) years.
III.4.5 Contribution to National Social Insurance Fund
The National Social Insurance Fund is an administration which develops a social
security policy given by the State itself; too much liberty is given any how to this organ without it
raising any reaction neither from the public nor from users:
-
setting up control posts without any social Law Code,
-
flat rate tax for the insured on the basis of a minimum of a job that must be insured
-
tax on any sub contract activity discovered in DSF on the pretext that the service
provider did not give you the CNPS file
-
attestation of CNPS tender henceforth issued according to the contract after
paying a charge worth 3,000CFAF
95
-
recovery methods and procedures not found in any law in force etc.
An isolated reflection should be put forward which should be a kind of audit to this
institution.
III.5 General observations
III.5.1 Exaggerated declaration obligations:
Section 101 :Before the 15 March each year or a month before the departure of his
salary earners from Cameroon, each manager of a company should produce, in the form of
individual pay slip per beneficiary following a model provided by tax services, a declaration of
the following amounts paid during the past financial year:
a) Salaries and accessories of all sorts paid to each member of his salaried staff;
b) various amounts above two hundred and fifty thousand(250,000) FRS paid as
commission, brokerage, discount, fees, rents, holidays, author‘s or inventor‘s rights and other
occasional payments.
c) A list of purchases per supplier with their identification number and the amount of
purchases per year.
The administration‘s right to control is the same as the declaration system; that is, the
administration always reserves the right to control declarations made by tax payers demanding
the production of any supporting proofs. The implementation of section 101 departs from the
declaration system because it can be interpreted as the beginning of an operation of tax control,
which we know should be surrounded by some preconditions.
Furthermore, the heaviness of this section comes from the volume of work to be done
and the quantity of documents to assemble with the possibility of errors which can be
detrimental to the company, given that work should be done when end of financial year
operations are being carried out.
96
Proposal 21
Section 101 of CGI should be suppressed in order to reinforce the financial statement at
the moment of declaration at the end of the financial year.
III.5.2 Functioning of tax Collection office:
The tax Collection office plays a key role in the treatment of taxes: it is in charge of
collecting taxes and issuing receipts. A tax declaration is only considered made if it goes with
payment attested by a receipt. From the formalities discussed above, with regard to creating a
company as well as paying taxes, we ventured into granting a minima deadline for procedures.
It should be noticed that reasonable deadlines are purely indicative. The reality on the field is
something else. These deadlines can be more or less long. All depends on the collection office
which can constitute a bottleneck if there is no computer to issue receipts immediately.
The present functioning of tax Collection office does not shorten these deadlines,
especially during peak periods, that is, tax declaration dates (15 of the month). Practically, only
one receipt booklet is used at a time by the worker whose attention is needed by a great
number of declarations to be paid. The volume of work accumulates and the rest of the
procedure cannot follow suite, and this prolongs the duration of treatment of files and waiting
period for users.
In the regional centres this waiting can go longer if there is shortage in stock of receipt
booklets or if the receipt booklets in the Divisional centre of taxation are finished. The tax officer
is obliged to travel to the main tax office to have more booklets. A temporary hand written
receipt is given to the tax payer, who can wait 5 or more days for his receipt to be issued.
Proposal 22:
97
To make up for loopholes in this functioning system, it is urgent to computerize the
takings system. Generally, it is necessary to computerize the whole Cameroon tax system by
creating interfaces and a computerized system with some administrations. This option helps to
accelerate the process of the treatment of files, issuing of receipts in time and to have
necessary information in real time to better grasp the situation of the tax payers.
Another advantage, but not the least, is that computerizing the system helps to protect
State takings given the mistakes that are often made in issuing receipts and producing booklets.
Proposal 23 :
Reintegration of registration units in the Divisional centres for Taxation.
It seems incomprehensible that at the moment the Cameroon tax system is opting for a
unique tax, the localized tax payer, registered and loyal to his post, should resort to an external
centre of taxation (specialized unit for registering order forms.
The special registration unit recently created in Yaoundé brings together eight units
already set up plus the special unit for contracts for fourteen CDIs. Five of the eight units are
found in the same building for registration pool for well defined ministries; the contracts unit is
elsewhere. Work from one pool to another depends on the budget of the ministries in charge;
some pools may be saturated while some have nothing to do. The tax payer is confused in this
set- up for lack of enough information.
It is time to bring back this unit to the Divisional centre for taxation where the
registration office was given the competence for the registration of contracts and sales
certificate and others…a posteriori control will be set up at the regional level on the duplicates of
acts whose formality had been given.
The Taxation centre is certainly better placed to give information to service providers of
limited importance for acts with transactions below 5 million FRS. The return of this formality to
the Divisional centre for taxation will help it to have necessary information in real time on the
turnover of the tax payer and to establish if need be, necessary taxes for equalization at the end
of the financial year.
98
Proposal 24 :
It will be better to bring together the various law texts in the General Code for Taxation
Simplifying tax procedures is also by putting in place a single reference document
namely, the General Code on Taxation; it therefore means that the following will be contained in
a single document: gas and mining codes, laws relating to establishments that are deemed
dangerous, unhealthy and uncomfortable, law on the water system and that of gas equipment.
IV- ACCOMPANYING DEVICES TO THE MAIN PROPOSALS :
99
The accompanying devices to proposals of simplification of tax declaration procedures are
the practical interpretation of the various proposals stated in this study; it can be divided into two
parts:

a legal part which calls for the modification of the tax law,

and a part for laws on the organization of procedures and structuring of the whole tax
system
IV-1 The legal device:
Incidence on proposal 1 : modification of Sec. 21 and 91 of CGI
Suppressing paragraph 3 of section 21, the rest remain the same.
 Sec.21 (new) :(1) Tax on companies is paid by the tax payer spontaneously as follows :
_________________________________________________
___________________________________________________
2) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_________________________________________________
(3) suppressed
 Sec.91 (new) _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
___________________________________________________
(1) Basic system_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_________________________________________________
(2) Simplified and real system_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_______________________________________________
Provisions of section21 of the present Code and relating to deduction on purchases are
also applicable to tax on individual revenue. However, the deduction quoted above stands at
100
1.5% for purchases done by tax payers who are not in the real system of taxation (suppressed
paragraph).
Incidence on proposal 2 : modification of sec.142
 Sec.142 (new) : The rate of the value added taxi s fixed as follows :
(1) a- Value Added Tax
General rate_ _ _ _ _ _ _ _ _ _ _ _ _ 18%
Reduced rate_ _ _ _ _ _ _ _ _ _ _ _ _ 9%
Zero rate_ _ _ _ _ _ _ _ _ _ _ _ _ _ _0%
________________________________
(8) (new) : the reduced VAT rate applies to the banking and real estate sectors,to restaurant
activities and agriculture activities and to some goods of basic necessity defined by the law.
Incidence on proposal 3 : modification of Sec.155, 580, 581 and 582
 Sec.155 (new) : tax proceeds are made up of _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
___________________________________________________

proceeds fromtax on real estate property
 Sec.580 (new) : tax on landed property is paid on the value of land as declared by the
owner, and on the value of buildings as noted in the building permit
(The rest remains the same)
 Sec. 581 (new) : the tax rate on landed property is fixed by the municipal council of the
place where the building is found, or as stated by the law
Example : - 1% in Douala and Yaoundé
- 0.75% for other towns
- 0.50% for rural councils
 Sec 582 (new) : Tax declaration on landed property is registered and paid at the taxation
centre for the council where the building is found.
101
(The rest remains the same)
Incidences on proposal 4 : modification of chapter II
Instead of « deadline for registering acts and declarations », read « registering acts and
declarations »
 Sec. 276 (new) : (1) Must be registered :
a) notary, court clerk, bailiff auctioneer acts their assistants as well as all the agents with
powers to write writs and reports including transactions, administrative tenders with reports or
not
b) Judiciary acts;
c) Administrative acts of conventions between the State or State companies and
individuals, especially acquisitions, sales, rent contracts, contracts, concession deposits. Acts
and reports about taking the ship given by administrative officers of the navy.
d) Professional changes in the use and ownership of buildings and business;
e) Successions
(2) Under the provisions of section 362, other acts that must not be registered may be
presented voluntarily at the formality
 Sec. 276 bis (new) : the deadline to register acts is determined as follows :
-
One (1) month from the date for all acts stated in paragraph a), b), c), and d) from
section 276 above.
This deadline can be extended to (3) months if there is no taxation centre in the
ministries or near at hand
-
Three months from their dates for all acts presented voluntarily at registration :
these are acts under private agreement about conventions especially lease contracts, subletting, transfer, cancellation, subrogation, sales, exchanges, contracts, shares, loans, etc..
102
-
Six (6) months from their date for authentic acts or a private agreement made
outside a CEMAC country and which carries a change of property, usufruct or the use of
building or business situated in that country or constitution of companies having their
headquarters in this country.
-
One (1) year from the date of opening succession for wills handed in or not to the
lawyer, to the behest of the heirs, donees, legatees, or will executors.
However, for acts whose validity is subject to signature or to be accepted from the
administration, the deadlines mentioned above only start from the day when the debtor is
informed of this signature or approbation; this date is not convenient to debtors.
Harmonizing declaration deadlines :
1) Special provisions for games and slot machines :

Sec. 218 : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ _ _ _ _ _ _ _ _ _ _ _ _ _ _
The tax is paid latest 15 March of the same year.
2) Stamp on publicity :

Sec. 592 :
a)
posters, tracts and leaflets printed in Cameroon :_ _ _ _ _ _ _ _ _ _ _ _ _ _
________________________ __________________________
During the first 15 days of the month that follows, they deposit on declaration, the
amount of the duties collected during the preceding quarter.
(The rest remain the same)
b)
posters, tracts and leaflets printed out of Cameroon :_ _ _ _ _ _ _ _ _ _ _ _
___________________________________________________
103
Payment is made in the first 15 days of the month that follows the entry of posters,
tracts or leaflets in Cameroon...
3) Publicity through the press :
a)
Newspapers printed in Cameroon :
Editors of newspapers printed in Cameroon receive at the same time as the
insertion fee, the amount of stamp duties due and transfer, on declaration, every first 15 days of
the month that follows the collection done during the preceding quarter to the taxation centre
where the establishment is situated.
b)
newspapers edited out of Cameroon but distributed in Cameroon _ _ _ _
___________________________________________________
Payment of corresponding duties is made before the 15 of the month which
follows the entry of the newspaper in Cameroon.
4) Publicity through radio and television: _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_________________________________________________
They deposit it on declaration at the taxation centre of their locality before the 15 of the
month that follows the quarter during which it was collected.
5) Publicity by cinema:_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
___________________________________________________
They deposit it on declaration at the taxation centre of their locality before the 15 of the
month that follows the quarter during which it was collected.

Law no. 2004/026 of 30 December 2004 on the Finance Law of the Republic of
Cameroon for the 2005 financial year.
III – veterinary tax on local trade
104
(1)
New : cold or frozen, salted, smoked or canned products :12% of the amount of
the business licence or standard rate tax, paid at the same time with the business licence and
standard rate tax
Revisiting the graduated duty of registration :
This section, which is part of part harmonized legally in the CEMAC zone undoubtedly,
needs a supranational court to modify it; but if there was a possibility the following sections
should be modified.
 Sec. 346 (Suppressed)
 Sec. 543 are subject:
a)
------------------------------------------------------------
b)
-----------------------------------------------------------
c)
------------------------------------------------------------
d)
------------------------------------------------------------
e)
------------------------------------------------------------
f)
To an exceptional rate of 0.25% of constitution and extension acts of the
company…
 Sec 544 (Suppressed)
Incidences on proposal 5: modification of Art.127, 211, 216 and 217.
VAT exemption from gambling and entertainment
 Sec. 127_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
___________________________________________________
paragraph (10) Suppressed
Taxation on Revenue of proceeds from gambling and entertainment in the common law
system
105
 Sec. 211 (new) : Deductions to be done on proceeds from casinos should conform to the
rules of calculating tax on revenue with regard to tax on companies or to tax on revenue of
individuals in the category of agriculture, industrial and commercial profits.
 Sec. 216 (new) : The profit making use of slot machines and equipment mentioned in
section208 of this Code, gives room to the payment of the standard rate tax of the payment of
other taxes especially tax on revenue and VAT.
 Sec. 217 (new) : The annual tax on gambling is calculated as follows according to the
classification of the tourist establishment where it is installed.
- 3 or more star Hotels :
Baby foot : 80 000 francs
Flippers and video games : 120 000 francs
Slot Machines : 500 000 francs
- 2 star Hotels :
Flippers and video games : 100 000 francs
- 1 star Hotels :
Flippers and video games: 80 000 francs
- Other establishments :
Flippers and video games: 40 000 francs
Incidences on proposal 6:
106
See the legal part.
Transport and bill of lading contracts : suppressing sec.469 and 470.
 Sec. 469 Suppressed
 Sec. 470 Suppressed
Incidences on proposal 8: modification of Sec.163 and 182 ; creating secS.162 ter.
Increase in the contribution of business licences taking into consideration the suppression of
RAV
 Sec. 163 contribution resulting to three times the application of a rate on the annual
turnover realized by the tax payer_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
___________________________________________________
Reducing business licence contribution in companies who have not realized any turnover :
 Sec. 162 1st Companies who have who have not realized any turnover during the
financial year are subject to pay business licence on the minimum turnover.
Suppressing the payment of licences for retail trade :
 Sec. 182
Any individual or company authorized to carry out any wholesale or the
brewing of alcoholic drinks, is subject to pay licence.
Option to integrate CACs in the tax system where it is calculated :
107
This option maintains the existence of CACs but they are now collected anonymously; it is
left to the State to transfer them to the beneficiary administration and councils. It is in the legal
part of this study that the text proposal will be made.
Incidences on proposition 10: suppressing Sec.221, 222, 223 and 224.
Suppressing Tax on arms :
The following sections in the General Code of taxation relating to tax on arms are
suppressed: 221, 222, 223 and 224.
See the legal part.
Incidences on proposal 12: modifying Sec.589, 590 and 592.
Managing the stamp on publicity through sign boards is done by the tax administration
 Sec. 589 are subject to pay stamp duty on publicity : _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_____________________ ___ __________________________
publicity signboards (suppressed)
-
 Sec 590 Meaning of :
-
posters : - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
-
tracts and leaflets : - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
-
publicity signboards (suppressed)
 Sec 592 payment of stamp duty on publicity is done as follows :
1)
posters, tracts and leaflets :
2)
publicity signboards : (suppressed)
108
Incidences on proposal 16
 Law no. 2004/026 of 30 December 2004 on the Finance law of the Republic of Cameroon
for the 2005 financial year.
Chapter Four
Tax and financial provisions
____________________________________ ___________
Provisions relating to proceeds from livestock
______________________________________ _________
III- veterinary tax on local trade
paragraph 1 (new) : (suppressed)
Incidences on proposals 13, 14, 15, 17, 18, 19 and 20:
See the legal part.
Incidences on proposal 21: modifying sec.101.
 Sec 101 Before 15 March each year or a month before the departure of salaried staff
from Cameroon, heads of companies are supposed to present, in the form of individual
certificate per beneficiary, and this model is provided by tax services, the declaration of the
following amounts deposited during the past financial year :
g)
-------------------------------------------------------------
h)
-------------------------------------------------------------
i)
(Suppressed)
109
IV-2 The legal device :
Incidences on proposals 4 and 14 :
 Decree no.98/009/PM of 23/01/98 to fix the base and modalities of recovering
duties, charges and taxes on the forestry sector.
Following law no.94/01 of 20 January 1994 on the forest, fauna and fishing sectors; the
above Decree put in place the following taxes;
-
Felling tax,
-
forest charges,
-
progressive surcharge, that is, exploitation surcharge and factory tax
-
relocation tax
and the declaration deadline of the 10th of the month which follows the month in
which the activity took place, does not coincide with the deadline of other taxes.
Objective: To revise this Decree and place forest taxation in the common law system by
instituting a specific tax for councils in order to regenerate the forest and village communities.
Incidences on proposals 6, 7 and18: Establishing a tax certificate for transport
It is just a tax simplification and facilitation document; it does not modify any tax but gives
the advantage of bringing many declarations into one. The taxes and duties are as follows:
-
Axle tax
-
Stamp on vehicle document,
-
windscreen licence or automobile stamp,
-
stamp on driving licence,
-
Certificate of capacity,
-
technical inspection
The transport tax certificate has real difficulties in its implementation:
Some taxes that fall under this group are paid yearly while others are paid quarterly: this is
the case of the windscreen licence and axle tax.
110
Some duties are paid once and for all while others are renewable: like stamp on vehicle
document, stamp on driving licence and capacity certificate.
The technical inspection is renewed either yearly for commercial vehicles or quarterly for
transport vehicles.
Implementing the tax certificate calls for a more detailed study which will be jointly carried
out by the transport ministry and the Ministry of Finance.
See recommendations
 Joint Order no.0349/MINAT/MINEFI of 22 October 2001 on the modalities of the base,
recovery and transfer of taxes destined for councils and FEICOM_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
CHAPTER II
PROCEDURES
Sec.6 (New)
A- Issuing procedures
The tax base service establishes an issuing certificate different from the main tax
representing the CACs amount. The monthly proceeds from CACs is divided by the treasury
accountant who is territorially competent according to the rules of repartition as defined in sec. 2
(new) and 3(new) of Decree no.95/690/PM of 26 December 1995 to fix the modalities of
repartition of CAC proceeds.
111
 Decree no. 2002/2175/PM of 20 December 2002 to fix the minima rate and recovery
modalities of some indirect council taxes_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_________ _________________________________________
____________________
Chapter XII : transhumance and transit tax
(Repealed)
 Decree no. 2002/2175/PM of 20 December 2002 to fix the minima rate and recovery
modalities of some indirect council taxes._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
___________________________________________________
sec.2 (New) :. The minimum rate and recovery modalities of indirect council taxes are fixed
according to the provisions of this Decree.
Incidences on proposal 13 and 15
Special taxes in the mining, gas and petroleum sectors appeared in the General Code of
Taxation following the finance law for the 2009 financial year; it is just a transposition of Sector
Codes‘ texts towards the tax code.
Their tax system cannot be identified clearly up till now; a consultation between the
ministries in charge of these sectors and the Ministry of Finance should result in their being
integrated in the common law tax with the definition of some specific taxes.
112
 Decree no.95/539/PM of 1 September 1995 to fix modalities for the collection of duties
and charges in the tourism sector instituted by Law no.93/002 of 30 June 1993 on the Finance
law for the 1993/1994 financial year. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
_____ _____________________________________________
CHAPTER III
Final and diverse provisions
Sec.4- (1) Duties and charges provided above are settled and paid to the Taxation
Headquarters._ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _
___________________________________________________
Charges should be paid in one instalment latest 15 March of each year.
Incidences on proposalS 20
The tax payer‘s card is valid for five (05) years.
RECOMMENDATIONS TO THE TAX ADMINISTRATION:
Proposal 25 :
1- To meet up with the loopholes in the present functioning, it is urgent to hasten the
computerization of taxation centres. Generally, there is the need to opt for computerization of
the whole tax system in Cameroon creating interfaces with other administrations. This option
helps in hastening the treatment of files and issuing bills in reasonable time, and to have
necessary information in real time to better grasp the tax situation of the tax payer.
2- Reintegration of registration units in taxation centres..
113
CONCLUSION
An optimal tax system should satisfy everybody, and the State for budgetary reasons, and
the people on whom they are applied. It will be a perfect tax system in which the different taxes
put in place and men and women managing them should satisfy everybody.
This type of tax system is a permanent problem to each State; but because nothing is
permanent, this study becomes normal demanding research on the adaptation of some
conditions to others.
This issue is still of fundamental interest in developing countries in which tax relations are
not yet stable and the whole tax system has not yet attained maturity.
Cameroon does not offer many exceptions and the description made when the reflection
remains heavy and cannot have an adapted tax system. This many faced reflection, that is,
which took many directions and also many dimensions gives great importance to socio
economic and tax considerations.
The study on the simplification of tax declaration and payment procedures is without doubt
one of the main issues in this reflection.
Because it is important to master each tax in the way it is instrumented in order to propose
alternatives to the present situation; but it is also because it is necessary to know the
administration itself in its status and functioning to succeed in making pertinent proposals.
It is the examination of taxes, one after another that was done throughout this study to
determine how the tax system can be flexible and less heavy by simplifying procedures ;this
objective will not be attained if some conditions are not fulfilled and certain measures taken to
give the tax system a decent look ;these are some of them:
114
1. A single tax reference document
Bringing together and not juxtaposing the various texts of the tax law in the General
Code of Taxation is indispensable; the 2009 Finance law started this bringing together of tax
texts: it is a good effort but much is still to be done.
Taxation continues to be a permanent issue in State administration because of the
financial autonomy that it brings; each administration comes up with texts that will enable it have
proceeds no matter the nature.

Tourism : duties to obtain licence for a tourist establisment, charges on
signboards…

Transport : stamp on car document, stamp on driving licence…

Territorial l‘Administration : CACs and a multitude of local taxes,

Town planning and Housing : domanial et cadastral duties

Culture : charges for artists

Livestock : exploitation tax and veterinary, tax on authorization for industrial fishing

Mines : quarry duties and a variety of charges for exploitation permit

etc.
…
Texts that will integrate the General Code of Taxation should be harmonized with texts
that came before them and conform to the tax system in force; tax on the petroleum, mining and
gas sectors formerly in the sector code are now in the CGI, but no effective study has been
carried out to determine their adequacy with other texts: special taxes tend towards common
law with many exemptions: all these is to further complicate the tax system, making it difficult to
manage.
This assessment is a constraint to the tax administration.
2. Managing taxation :
Managing taxation does not end at issuing and recovering taxes, we have to think
about the tax and to do that, we need well trained men and a good framework to express
themselves.
115
The DGI has a service just for reflection on taxation but is this service equipped enough
materially and in human resources to carry out this task?
The department of tax law has only a few people and needs more.
There is no career plan for taxation workers and this hinders the quality of the
administrative production and leads to corruption which has stuck like a leech.
Another issue which came at the same time with this mismanagement of careers, is the
recruitment of supporting staff who turned out to be adventures waiting for something better to
do. The following three situations acted together to complicate the management of the tax
system:
-
the young civil servant given big responsibilities has to meet up with the level of his
colleague materially forgetting that longevity in service allows the colleague to be at a superior
level ;
-
the disappointed old worker falls back on tax payers whom he manipulates for his
own purposes ;
-
The support staff without ethics and personal commitment towards the
administration which recruited him can only develop an attitude that can harm the functioning of
the system.
The results are obvious: tax pressure is the order of the day and it is difficult to
differentiate with the tax burden.
The DGI therefore has to set up a solid tax law service which will be like a counterpart
of the tax executive. It should also put in place a career policy for its staff and encourage hard
working staff by organizing in- service examinations or training; functioning should obey
deontological rules that are unanimously accepted. And lastly, what is decided till date is that it
should stop arbitrary recruitment.
Men alone, no matter their talent are not enough to ease tax procedures ; organization
of the service is an asset for optimal management.
116
3. Organisation of services :.
Rules for running one taxation centre to another are generally different in order to have
any tax document (attestation of payment, tax situation form, tax certificate etc.) some centres
always ask for a stamped application per document.
Other centres accept one stamped application for all documents and very few centres
accept applications that are not stamped.
The tax administration should harmonize services from one centre to another ;
otherwise ;for obvious, reasons of objectives, the chiefs of centre are sometimes forced to
overtax in order to maintain their posts; others go as far as asking for payment in advance for
taxes that have not yet due.
But some services can still be suppressed because computerizing the Cameroon tax
system is still far fetched.
4. Computerizing the tax system :
Constraints force the DGI to buy a very powerful computer.
Although some tax collection offices are now computerized, we cannot talk of a
computerized taxation centre since it should be all the activities of a centre that should be
computerized to ease the flow of information in the centre, from one centre to another and from
the centre to out of the centre. How much time does it take to issue a tax certificate or a tax
situation form in our taxation centres for the simple reason that we need to first go to the tax
payer‘s file and do all the necessary calculations before knowing his tax situation?
The same remark goes to CNPS for issuing APSs where handling files is still manual.
The teledeclaration was inaugurated at DGE ; it should be extended to CIME and even
CDI.
117
Telepayment should also be experimented with the electronic banking that is being set
up.
The paths to simplification of procedures are many but it is awareness that is important
and the courage to change issues. Cameroon has understood this and it is seen in the many tax
reforms carried out in the last years and the follow up that was done.
118
IV RECOMMENDATIONS TAKEN AFTER THE WORKSHOP ON THE VALIDATION OF THE
STUDY
On the simplification of the procedures of tax declaration and payment formalities
On 3 and 4 November 2009, a workshop was held at HILTON hotel in Yaoundé on the
simplification of the procedures for tax declaration and payment procedures under the
patronage of:
- the Cameroon Business Forum
- the International Finance Corporation
- the Ministry of Plan and Regional development
- the Ministry of small and medium sized enterprise, social economy and handicraft
- Taxation headquarters.
The representative of the International Finance Corporation opened the floor and gave the
main issues on the agenda as follows:
1- a word from MINEPAT representative,
2- a word from the Secretary General of MINPMEESA,
3- presenting reports on study,
4- debate on proposals made by consultancies,
5- restitution of resolutions in a plenary session
The representative from MINEPAT in the person of the Director of the Economy opened
discussions by presenting the context in which this study was requested.
The Secretary General of MINPMEESA presented the progress made at the level of her
Ministry and other organs in a bit to encourage investment and create enterprises in
Cameroon. She lauded the initiative of CBF which comes to solve the problems of various
partners to development.
A workshop to validate conclusions of the study carried out by CEMA SARL Consultancy on
the simplification of tax declaration and payment procedures was set up.
This workshop was made up of:
- CEMA SARL Consultancy,
- Representatives from MINEPAT,
- Representatives from the ministry of industry and technological development,
- Representatives from the ministry of Justice,
- Representatives from CNPS (national social insurance fund,
- Representatives from the taxation headquarters,
- Representatives from Customs,
- GFAC representative,
- Representatives from the industrial zone
The representative of IFC opened works which he organized as follows:
- restitution of the study by CEMA SARL Consultancy,
- debate on various proposals made,
- adoption of a recommendation
119
A-
Restitution of the study
The CEMA SARL Consultancy synthetically made an exposé of the study it carried out on
―the simplification of tax declaration and payment formalities‖.
The Consultancy organized its work on four points:
 a summary description of the Cameroon tax system
 a critical examination of tax declaration and payment procedures
 simplification proposals
 accompanying device to main proposals
After a commented presentation of the whole study by experts from the Consultancy, it was
noticed that out of the 24 proposals made, a majority of them were more oriented towards a
reform of the tax policy mainly on suppressing some taxes or simply reducing them, on the
proposed theme of the simplification of tax declaration and payment procedures.
The fact still remains that works of the Consultancy also touched a delicate part of relating to
tax discipline.
Since the workshop did not completely ignore the first aspect, it dwelled on proposals to
facilitate procedures selected from the study. It is in this respect that ten proposals out of the
twenty four sent in could be examined.
1- suppressing deductions on purchases
Generally, the workshop admitted that deduction on purchases from monthly deposits on the
turn over became a redundant exercise for the tax payer if the progressive disappearance of
the informal economy took deposits as the suitable means of paying contemporary taxation.
Consequently, since management costs of this deduction in terms of various accounting
operations to be done or declarations and payments to be made in deducting from the
source became unprofitable, deduction from purchases was suppressed.
2- On VAT
2.1.1 Reducing the general rate from 19.25% to 18% to meet council demands
Despite the fact that the revision of VAT rates comes from the tax policy, the committee
supported the proposal of the institution of less penalizing rates. This is why it approved the
proposal to reduce to 18% the VAT rate in order to meet council demands.
2.1.2 Instituting a rate reduced to half of the normal rate in order to promote some
sectors like real estate, restaurant or mass consumption, banking and finance sectors
and that of agriculture.
With regard to the proposal to institute a reduced rate, the committee did not retain it for
various reasons among which are the difficulties of managing accounts of so many
operations and especially the fact that the CEMAC Convention did not provide for an
intermediary rate.
120
2.1.3 Transfer of power of refunding VAT loans to chiefs of regional centres of
taxation and to the head of the department of big enterprises for files worth less than
30,000,000 CFAF.
Participants of the workshop recognized the difficulty that tax payers will face when they will
want their VAT loans to be refunded. That is why they supported the proposal to
decentralize the mechanism of refunding VAT loans under the control of the hierarchy.
3- suppressing the obligation to certify cheques when paying taxes
The committee validated the proposal to suppress the certification of cheques when paying
taxes, given the new CEMAC law on the issuing of bounced cheques.
4- On land tax
4.1 while waiting for the setting up of a national land registry, the liquidation and
recovery of land tax are henceforth in the hands of the local authorities under the
control and supervision of the tax administration. Monthly statistics should be sent to
the taxation headquarters for consolidation.
The workshop realized that declaring and paying land tax where the building is situated was
to facilitate and reduce declaration and payment charges.
The Consultancy‘s proposal to transfer this tax to decentralized local authorities was
supported given that, according to the representative from taxation headquarters, a law on
this will be examined in the taxation headquarters.
4.2 The rate of land tax should be graduated in order not to penalize heavy
investments in real estate
It was also realized that the fact that the fixed and proportional rates of this tax did not favour
big investments in real estate was true but this reflection was from the domain of tax policy;
that is why instituting a graduated rate of TPF did not win the support of the committee.
5- Revising the scale of section 544 which states that the rates of registration duties
in a bit to setting up and prorogation of a company as well as acts on the increase
of capital of a company
Participants to the workshop agreed on the importance of the Consultancy‘s proposal to reexamine this section in its function and operation in order to facilitate the creation of
companies, despite the fact that it does not participate basically in the simplification of tax
declaration and payment procedures. The representative from the taxation headquarters,
given the demonstration that was made, promptly validated this recommendation and
promised to consider it in the finance law of the 2010 financial year.
6- Stamp duty on applications to issue some administrative documents (proposal 8)
The committee approved the Consultancy‘s proposal to suppress the dimension stamp on
applications made to be issued documents for tax services; we cited among others, the
standard rate tax, the licence, the tax payer‘s card, attestation of non deliverance, tax
certificate or a form for tax situation.
121
7- On the tax payer’s card (proposal 20)
Despite the fact that the taxation headquarters is working on a wider project of single
identification, the committee opted for a validity period of 10 years for the tax payer‘s card
instead of 5 proposed by the Consultancy and 2 years as is the current practice.
In fact, all participants of the workshop were unanimous on the issue of renewing the tax
payer‘s card every two years by paying 500 CFAF each time and facing the difficulty of the
operation which was a loophole in tax procedures.
8- On the payment of additional council centimes (proposal 9)
Since the introduction of CACs in issuing distinct certificates proved to be a set back
in declaration procedures, it was proposed that this be done at the level of the
treasury; however, the unit for refunding VAT loans should, after each refund, send a
receipt to FEICOM against CACs that have already been refunded.
After having discussed this in the workshop, it was maintained. The tax headquarters was
shown the losses incurred by refunding VAT loans while the tax collected at first has already
been repatitioned.
9- On computerizing taxation centres (proposal 22)
In order to meet the loopholes noticed presently, it is urgent to speed up the
computerization of taxation centres. Generally, there is the need to go for the
computerization of the whole Cameroon tax system by creating interfaces and
information technology links with some administrations. This option has the
advantage of speeding up the treatment of files, issuing receipts promptly, and having
necessary information in real time to better understand the tax situation of tax payers.
Participants of the workshop during their many interventions unanimously supported the
proposal that was made; they agreed that computerization offers another advantage and not
the least: it helps safeguard State takings often seen when issuing receipts and using
parallel receipt booklets.
The director general of taxes in his speech to the committee disclosed that his administration
was working on a vast programme of computerization and that in reality; it was just a matter
of time for these innovations to be put in place.
10- On the computerization of tax declaration and payment procedures
The committee went for the Consultancy‘s proposal to further engage the taxation
headquarters of tax declaration and payment, forms used should be available on the
Internet.
122
11- On section 101 paragraph C of the GCT
Section 101 of GCT should be suppressed in order to reinforce the financial statement
to be presented when declaring taxes at the end of the financial year.
The committee opted to maintain this section but proposed rather a reduction of the 5,000
CFAF by omission provided in section 103 to a modest sum of 500 or 1,000 CFAF.
Before the closing session, a discussion took place with the director general of taxes who
wanted information on proposals and resolutions taken.
From these discussions, the DGT lauded the work done by CEMA SARL Consultancy and
all the simplification procedures given a the report stating that most of these proposals and
resolutions made in this workshop were being examined at the taxation headquarters and
some have even been proposed this year in the National Assembly for adoption in the new
finance law for the 2010 financial year.
The DGT also lauded the pertinence of these proposals from the tax policy but also said that
decision to adopt or implement decisions was not totally in the hands of the taxation
headquarters. However, putting himself in the place of tax payers, he admitted that there
were some loopholes in tax procedures which he will surely pinpoint to the hierarchy for a
better administration of taxes in our country.
Lastly, he promised good governance actions, and to encourage his collaborators to carry
out efficient work in the respect of norms especially in tax control in order to avoid any tax
evasion.
These are the main resolutions taken at the end of the workshop on the simplification of
formalities of tax declaration and payment coordinated by Mr Benoît MORIN.
123
APPENDIX I
REPORT OF THE STUDY CARIED OUT
IN THE YAOUNDE URBAN COUNCIL
Two types of taxes are sampled in the urban council:
-
direct taxes
-
indirect taxes
A- Direct taxes
They are in two categories; council tax and fiscal tax
a- Council taxes
They are council taxes (TC), and additional council centimes (CAC)
b- Fiscal taxes
These are contributions to business and other licences. The treatment of all these
direct taxes is done in the department of taxation, which does all the formalities of issuing and
recovery and payment of the proceeds to the urban council.
B- Indirect taxes
These are taxes paid directly to the urban council. The are :
tax title
Periodicity
Amount
Products harmful to hygiene
daily
[1000 – 5000]
Proceeds of municipal pound duties
daily
25.000/day for small
vehicles and 100.000 for
heavy duty vehicles
Proceeds from duties of place in the markets
monthly
[2500 – 30.000] according
to the market
Proceeds from the tax on building permit
On demand
1% of the cost of
construction
proceeds from tax to occupy parks and
damage done on the road
quarterly
12.000 for pick-up and
200.000 for trucks
Proceeds from tax on publicity
quarterly
124
Proceeds from the sale of communal stamps
daily
Proceeds from other indirect council tax
daily
Proceeds from rents from council building
monthly
Proceeds from renting of furniture in the
community centre
daily
Proceeds from lease or grant services
monthly
other proceeds from the exploitation of land
quarterly
Proceeds from fines
daily
200frs
All these taxes have two objectives :
-
assistance to sub divisional councils
-
constitution of the community budget
Most of these texts are not fixed; they vary according to some specifics Thus,
-
Rates applied on the damage done on the road are fixed by the architects of the
urban council who can better assess the damage done and fix the amount to be paid.
-
The share imposed for the publicity proceeds is fixed according to the value of the
good for which the publicity is done, he zone where the company is and the size of the
signboards.
-
The resale of council land is also subject to special taxation
-
Other taxes proceeds from the exploitation of public land for example cable
distributors, are calculated by planete-media company for whom the urban council is
subcontractor.
-
The urban council receives all taxes on all offences on the public road, sharing the
proceeds from offences is done at the police station and the council receives only the amount
alloted to it. However, there is a flat penalty paid to the council in case it is the municipal polce
that write the offence.
125
PAYMENT CIRCUIT
All tax payment to the urban council is done according to the following circuit :
The declaration to pay by a user is done by issuing, at the tax base, a certificate in three
copies; this issuing certificate is transmitted to the recovery service which acknowledges it. It is
the acknowledgement form and the issuing certificate that are presented for payment.
Once the payment is done, the cash desk puts stamps on the forms which are taken to the
accountant for a receipt.
Three types of payment are accepted:
 cash,
 certified cheque,
 bank transfer.
Schematic payment Circuit in the Yaoundé urban council
Tax base Service
Recovery Service
Counter
Accounting Service
126
The urban council receives taxes averagely and according to the periods 10 to 40 users per
day, and the minimum time to carry out an operation up to the issuing of a receipt is 45mn.
All tax operations bring in an average of a billion CFAF in the coffers of the Yaoundé urban
council.
127
APPENDIX II
Declaration and payment Circuit to CDI
Computerized and uncomputerized centres
VAT declaration or 1.1% deposit in an uncomputerized centre (case of CDI
6,7,7bis,8,9,10,11,12,13, and 14) is filled in two forms.
The reception office guides tax payers, and sends them to the chief of CDI who receives
the declaration for validation, that is, sign it and put stamps (State seal and names). The goal of
the operation in most cases is to re-evaluate the declaration done for a certain type of tax payer
with no reliable account (the case of the tax payer of the tax base regime) and this, despite the
principle of the declaration system.
The chief of centre then proceeds, if need be, to the control of deductions. He puts his
signature on the declaration and sends the tax payer to the chief of IFU ―single tax
representative‖ who notes the activity of the tax payer to establish an issuing certificate(BE).
The tax payer now armed with his declaration and issuing certificate(original and copies) goes
to the collection office for payment.
There is some delay in issuing receipts around the 15 of each month because there are
crowds of tax payers paying at this period.
The file composed of the receipt and copy of BE is returned to the chief of IFU who goes
through it. He gives back the copy of the declaration and the receipt to the tax payer.
The original of the declaration, a copy of the BE and a photocopy of the receipt are placed
in different folders and file jackets of the tax payer‘s file after annotation of the tax leaflets.
128
The declaration circuit described above is valid and identical for all tax declaration under
CDI.This circuit can be schematized as follows:
Chief of Centre
Department of
taxation
reception
Tax officer
Chief of IFU
Tax officer
Declaration circuit in a computerized centre :
Case of CDI 1st, 1st bis, 2, 3, 4, 5 and of CIME.
The tax payer fills two declaration forms and deposits at the secretariat; the people in
charge of receiving files put the round stamp of the State and the date of reception of the
document.
The tax payer takes his declaration to the inspector, that is, he who manages tax files in
the Centre; he validates the declarations by putting his name stamp on it and keeps a copy; the
copy is brought back to the registration hall (computer room) by the tax payer for typing. The
NIU(single identification number) is then introduced into the computer to retrieve the file of the
tax payer; once the file is on the screen, the operator types in the declaration data. During
typing, the computer breaks up the various taxes.
After this stage, there are generally two possibilities:
a- The printer is functioning
When the printer is functioning, the computer directly prints the typed data ; the printed
files are given back to the tax payer who pays at the counter.
129
The counter again introduces the same identification number to verify the data on the
screen and the one in the printouts; this done, we proceed to payment and the receipt is
automatic.
b- The printer is not functioning
In this case, after registering the data, the tax payer is given various codes to take to
the counter. These codes are registered again in the computer by the cashier who proceeds to
payment.
It should be noted here that the process as described above in the case of CDI3 is not
the same with other computerized centres, where, after paying taxes at the counter, the tax
payer is generally asked to come back after a week or more for the receipt.
Schematic Circuit of a computerized centre : case of CDI 3
Tax payer
Secretariat
inspector
Computer
room
counter
130
APPENDIX III
Functioning of the stamp in the
customs’ headquarters
Stamp collection in the customs‘ headquarters was set up by Order no.00335/MINEFI of
22 September 1999; its initial mission, according to section 2 of this Decree, was to collect
stamp duty on operations relating to customs.
This office started its activities effectively in January 2005 and on 1 March of the same
year, the Minister of Finance and Economy reminded this office that it was in charge of
receiving the stamp on car documents, a duty formerly carried out by the Ministry of Transport
for the Littoral.
We will rightly think that according to this Order and the note addressed by the Minister of
the Economy and Finance to the Minister of Land Transport (copies attached), this office thus
set up was supposed to only issue only windscreen licences and stamp on car document.
We did not find the text that puts in place registration duties at the time of customs‘
clearance of second hand vehicles but practically, the DGI at the Douala Seaport collects three
types of duties:

Automobile stamp

Stamp on car document

Registration and moving duties of second hand vehicles.
A joint note from the Director general of taxes and the Director general of customs states
however that the duties numbered above are collected when clearing second hand vehicles at
the customs.
Collecting stamp duties on a vehicle when it has been put in circulation in Cameroon is no
longer a problem and more to that it helps in simplifying formalities as stated in this study.
131
1. Practical problems:
The seaport office had 11 members of staff after the census of August 2009 and is
situated in a container at one of the exits of the car park; the container, service computer and
furniture used belong to the Douala Seaport; the crowdedness here is a sign of insecurity that
reigns in this area.
This office receives averagely, a hundred people a day and despite the commitment and
good will of the staff, it is incapable of satisfying all the people on the same day; clearing
procedures are usually very slow, the importer of the vehicle often finds himself paying
demurrage fines, that is, abusive parking because of the slowness of the office.
The efficiency of the office to cover all the vehicles that enter Cameroon is not obvious,
though it is not the set goal; but if the Douala seaport needed to be controlled, we can say that,
after taking stock, the operation was not a total success given that some people, after paying all
the custom duties demanded, often wait for the departure of staff at the end of the day or on
Saturday when they are not working to collect their vehicles.
This is also the case if there are two vehicle exits where it will be difficult to control.
2. The problem of duties
The duty of transfer paid at the Douala seaport is not a registration duty because the
office at the seaport does not register any act; the duty is paid following the provisions of section
295 of CGI on the value to be taken into consideration when determining the tax base. In the
case of cash, there is no act because there is no sales certificate to prove the transfer and to
submit to the registration formality given that this act will be produced later in a public
administration to issue the vehicle document.
Anyway, five points should be retained in determining the value of a vehicle:

Clearing attestation to know the custom duty paid,

The SGS document (the SVIO document as it is called) which gives the value of the
imported vehicle in order to evaluate the custom duty,

The PAD receipt,

The Acconiers receipt,
132

Forwarding agent‘s receipt
But the liquidation of the duty is done and all documents used for this purpose are given
to the user to avoid any other control out of here; copies of the receipts left do not give any
information on the bases used, and finally, it is impossible to understand what actually
happened.
Transfer duty paid by users is not clear when we exempt concession operations which
help the entering of vehicles to the national territory after the transfer which took place out of
Cameroon; this tax is illegal: it looks like a frontier tax that should be integrated in the custom
duty if collecting it should become indispensable; this will avoid confusion in management and
additional cost in time that it imposes to users.
133
APPENDIX IV :
134

SIMPLIFICATION OF TAX DECLARATION AND PAYMENT

Transcription

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