Personal Income Tax (PIT)

Personal Income Tax (PIT)

Who/what is liable?

  • Worldwide incomes of Individuals who have their tax residence located in Cameroon
  • Also, persons who have their tax residence located outside Cameroon are subject to personal income tax only on their income derived from Cameroon.
  • Regardless of whether their tax domicile is located in Cameroon, Cameroonian and foreign nationals who earn income or profits taxable in Cameroon under the terms of an international convention to avoid double taxation.

An individual is considered to have his or her tax residence located in Cameroon if he or she meets one of the following conditions:

  • He or she has a home or a principale place of residence in Cameroon.
  • He or she is engaged in a salaried or non-salaried activity in Cameroon, except when this activity is an accessory activity.
  • He or she maintains a “center of interests or business” in Cameroon.
  • He or she is a civil servant or state employee working in a foreign country and is exempt from tax in the foreign country.

What type of activity is liable to PIT?

  • Employee activity including benefit in kind (Tax Withheld at source)
  • Self-employed individuals (handicrafts, commercial, professional and agricultural)
  • Professional ministerial officers and liberal professions
  • Investment incomes (dividend, interest on loan, savings accounts, etc….)
  • Capital Gain

What income is subject to tax?

  • Net income (cash or non-cash) from all categories earned by the taxpayer within the tax year,
  • Profit from any gainful transactions engaged in by the taxpayer, less an abatement of XAF 500,000
  • Benefit in kind valued as per percentage below
  • Allowances covering professional expenses and family-related allowances and benefits are specifically exempt.

The tax base for employment income consists of gross remuneration and benefits after the 30% deduction for professional expenses

Benefit in kind

Rate

Housing

15%

Automobile

10% for each

Domestic servant

5% for each

Electricity

4%

Water

2%

Food

10%

 

Some PIT highlights

Employers must file an annual statement of salaries by 15th of march following the end of the preceding year, when filing CIT tax return.

Finance law for the financial year 2021 mandates filing of an annual tax return for physical persons subject to PIT with the following deadlines.

  • Professional taxpayers in a commercial, industrial, agricultural or professional activity: 15 march of each year as per OHADA rules, from 15 of march 2021.
  • Non Professional taxpayers (employees), having other revenue or asset owner: 30 June of each year from 30 June 2021.
  • A form provided by the tax authorities will be available on tax office declaration website for filing.
  • Information to be provided will concern; revenue, deductions, taxes paid or retained at source, and final tax due.
  • Payment could be done by mobile phone, by bank transfer, by telepayment or in cash by bank deposit.
  • Overpayment duly validated by tax office could be refunded of deducted on future declaration.

What are the tax regimes?

In general, non-salaried activities with some exemptions are classified into 3 regimes depending on assumed yearly revenue. Lower revenue level includes less restriction regime than high revenue level, and options are opened to move to intermediate regime to highest.

This classification is also valid for the CIT.

Taxes regime are:

Regime

Revenue (XAF)

Discharge tax

Less than or equal to 10 million

Simplified

More than 10 million and less than 50 million

Actual earnings

Over 50 million

What are deductions?

Deductible expenses for commercial, professional and agricultural activities are similar. They include the following items:

  • Costs of materials and inventories
  • All expenses incurred to conduct the activity (including personnel expenses, certain taxes, rental and leasing expenses, and finance charges)
  • Depreciation expenses
  • Provisions for losses and expenses

PIT general Rates

Exceeding

Not exceeding

Rate

XAF

XAF

%

0

2,000,000

10

2,000,000

3,000,000

15

3,000,000

5,000,000

25

5,000,000

-

35

A 10% surtax, known as additional council tax, is levied on the amount of personal income tax.

    Others PIT Related taxes

Tax

Basis

Rate

Contributor

Periodicity

Housing Fund contribution

Gross salary

1%

Employee

Monthly

Housing Fund contribution

Gross salary

1.5%

Employer

Monthly

National Employment Fund

Gross salary

1%

Employer

Monthly

Audiovisual tax

Base

Scale

Employee

Monthly

Local Development Tax

Base

Scale

Employee

Yearly brought to month

Last update: 29 of July 2021

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