Tax In Cameroon

A Contractor’s Guide to Taxes :

One of the most consistently challenging aspects of contracting in Cameroon is complying with the country’s tax system. As well as paying tax in Cameroon, you might also still be eligible to pay some tax in your home country, and understanding the legislation behind this can be a challenge.

How do I calculate my taxable income:

If you’re working in Cameroon under a permanent contract, many employers will handle your tax under the PAYE (pay-as-you-earn) system. This means that they calculate and process your taxes in Cameroon for you and then send you a net wage. Your income tax, public health insurance, social security and other deductions will all be covered by this payment. This is the easiest way to handle your income tax in Cameroon, but contractors may not be offered this service because of their short stay with each employer.

Anybody who can’t pay their tax in Cameroon through PAYE is left with the prospect doing everything themselves.

Do you know much about Cameroonian Tax Law? Does Cameroon have a tax treaty with your home country? You will need to find out or find someone who can help! Income tax in Cameroon can range from 10 to 35 percent, and you need to be sure you are placed in the correct tax brackets.

Tax Calculator:

If you are a contractor and want a calculation on your tax and net retention in Cameroon, we can supply it to you free of charge.

Using an Umbrella Company for Income Tax :

Contractors in Cameroon are faced with masses of paperwork and numerous wasted hours filing a tax return unless they find an alternative option. A Cameroonian umbrella company can act as your employer during your stay in the country whilst still allowing you the freedom of a contractor. The only difference is that you submit your timesheets to them; they’ll calculate and pay your taxes as you earn, and then you receive a net wage (as well as documentation for your records).

The companies are experts in Cameroonian taxation, and they’ll ensure that you keep the largest proportion of your earnings whilst complying with local laws. They can deal with any issues with the Cameroonian tax office or tax department directly including processing your tax refund if you are eligible.

How We Can Help You with Tax:

We work with numerous umbrella companies in Cameroon, many of whom are experts in tax and immigration laws. If you have any questions about tax in Cameroon, we’ll get the answers from them directly so you can rest assured you’ll be getting accurate information. We have comprehensive knowledge of the different services they provide, and can help you find the right company to handle your income tax. We help oil and gas workers, software developers, IT project managers, testers, business analysts and telecommunications contractors get tax efficient payments and sponsorship for their Cameroonian work permit.

Our advice is 100 percent free, and comes with no obligations. You will be paying taxes in Cameroon but without the overhead of directly dealing with the Cameroonian tax authorities. Get in touch with us today for some reliable advice on tax in Cameroon!

When Do You Need to Lodge Your Tax Return?:
15 March (of the year following the income tax year)
Tax Filing Deadline :
15 March (of the year following the income tax year)
Can you file it online? :
Yes, https://teledeclaration-dgi.cm/modules/Common/Account/Login.aspx
Currency:
Central African CFA (XAF)
Tax-free Threshold in:
None
Grossed Income:
0 – 2,000,000
Tax Rate:
10%
Grossed Income:
>2,000,000 – 3,000,000
Tax Rate:
10%
Grossed Income:
>3,000,000 – 5,000,000
Tax Rate:
25%
Grossed Income:
>5,000,000
Tax Rate:
35%
How long does it take to set up:
16-17 days
How much does it cost:
XAF101,500 + 2% of share capital up to XAF3,000,000 + 1.5% of capital from XAF3,000,001-10,000,000 + XAF1,000 per stamp
Is it easy? :
Starting a Business Rank: 122/190 (Source: World Bank)
How to File Taxes in:

The tax year is the calendar year.

You are only required to file taxes if you have earned income other than employment income/salaries and income from securities.

Does the 183 day rule apply in:

Yes

When do you become a tax resident in:

You become a tax resident in Cameroon when:

  • Your centre of interests, business or place of abode is in Cameroon;
  • You are engaged in a salaried or non-salaried activity in Cameroon (except when this activity is an accessory activity); or
  • You stay in Cameroon for more than 183 days in a calendar year.
Am I taxed on my global income in:

Resident individuals are taxed on their worldwide income. Non-resident individuals are taxed in their Cameroon-source income only.

Client comment

  • Great advice and excellent service on contracting and immigration solutions in the UK. I would highly recommend Tim and the team to assist you with accurate, clear and concise contracting advice in the UK or any other country for that matter.

    Prishen Pillay Shell International Trading & Shipping / Global DBA Operations Lead
  • I utilized PEO services with Contractor Taxation & have found the services invaluable. We had to quickly establish a presence in China to meet a perceived large market, knowing how difficult it could be setting up a complete operation there. CT helped us immensely to navigate these waters and establish this beachhead without a lot of the normal distractions associated w/opening a full operation. This allowed us to focus on our client’s expectations and keep us moving forward in the market.

    John Zimmer Charles River Development / Vice-President, Finance