Corporate tax at 33%. VAT at 19.25%. Monthly minimum taxes. Business licenses. Navigating Cameroon's tax system can make or break your SME. Learn the real rates, filing requirements, common pitfalls, and practical strategies to stay compliant without drowning in bureaucracy.
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If you're running a business in Cameroon or Central Africa, understanding your tax obligations isn't optional—it's survival.
The tax landscape across the CEMAC region is complex, frequently changing, and often opaque. Corporate income tax rates hover around 30-35%. VAT adds another 15-19%. Business licenses, excise duties, payroll taxes, and mandatory council surcharges pile on top.
For SMEs already struggling with limited capital and infrastructure challenges, navigating this maze can mean the difference between growth and collapse.
This guide breaks down what you actually need to know: the real tax rates, filing requirements, common pitfalls, and practical strategies to stay compliant without drowning in bureaucracy.
Cameroon: The headline rate is 30%, but add a mandatory 10% council tax on top—bringing your effective rate to 33%. Small companies with turnover under 3 billion XAF pay a slightly reduced rate of 27.5%.
But here's the catch: even if you make no profit, you still pay a minimum tax of 2.2% or 5.5% of your monthly turnover. This "acompte" system ensures the government collects something regardless of your profitability.
Regional Comparison:
If you're paying yourself a salary or have employees, personal income tax applies progressively:
Cameroon: 11-38.5% (including the 10% council tax surcharge)
Regional rates:
Every sale you make likely includes VAT, which you collect from customers and remit to the government:
Cameroon: 19.25% (17.5% base rate + 10% surtax)
Regional rates:
In Cameroon, the patente is a turnover-based license tax ranging from 0.159% to 0.494% of your annual turnover, with floor and ceiling amounts depending on your business category.
Good news: New businesses in Cameroon get a one-year exemption from patente.
Gabon charges a fixed annual fee of 15,000-540,000 XAF depending on your sector (and it's tax-deductible).
Chad, CAR, and Congo have minimal national license fees, though local municipality taxes may apply.
If you sell alcohol, tobacco, luxury goods, or fuel, expect additional excise taxes:
Cameroon:
Regional examples:
Minimum Turnover Tax: Countries like Cameroon (2.2-5.5%), Congo (1%), and Equatorial Guinea (1.5%) require monthly payments based on revenue—even if you're unprofitable.
Withholding Taxes: On dividends, interest, royalties paid to non-residents or even residents. Rates vary but typically 10-15%.
Payroll Taxes: Employers must withhold income tax from employee salaries and remit social security contributions monthly.
Local Surcharges: Many municipalities add their own taxes—Cameroon and Congo have council taxes, Gabon has a 1% telecom tax on turnover.
Before you do anything, register with the tax authorities and obtain your tax identification number.
In Cameroon, this means getting your "patente" registration. You'll need this to open a business bank account, issue official invoices, and file tax returns.
Timeline: Register as soon as you start operations to avoid penalties for operating without proper documentation.
Most taxes require monthly returns due by the 15th of the following month:
Critical: Even if you have no sales or owe no tax in a given month, file zero returns to avoid penalties. Silence is not compliance.
CIT returns are typically due in March-May depending on your tax center in Cameroon. Other countries have similar deadlines.
You'll reconcile your annual profits, calculate final tax owed, and credit any monthly prepayments made throughout the year.
Cameroonian law mandates keeping all invoices, receipts, and tax records for 10 years. Electronic records are acceptable if auditable.
OHADA-standard accounting is required across the CEMAC region. This means:
Good records aren't just compliance—they're your defense in an audit.
Many countries are moving to e-filing and e-invoicing:
Invest in digital accounting systems now to avoid scrambling later.
A large share of businesses in Cameroon operate in the cash economy, with only a fraction of income reported. Studies show less than 24% of informal traders even pay the simple local license tax, and only about 16% would willingly pay formal income taxes.
Why it's dangerous:
The solution: Formalize gradually. Start with business registration and basic license taxes. File simple returns. Build a paper trail. You don't have to be perfect immediately, but you need to be moving toward compliance.
In Cameroon, late payment of patente incurs a 10% penalty per month, up to 30% maximum. Late VAT or payroll filings trigger similar fines.
There are no extensions for holidays. If the 15th falls on a weekend, the deadline is typically the next business day—but confirm with your tax office.
The solution: Set calendar reminders. Automate payments where possible. File zero returns even when you owe nothing. Never miss a deadline, even if you can't pay in full—file and negotiate payment plans.
Cameroon's tax administration faces significant corruption challenges. Over 20% of companies report expecting to make "gifts" to tax officials, and many encounter irregular payments or bribes during audits.
More than half of locals believe most tax officers are corrupt.
The danger: Paying informal "facilitation fees" is illegal, creates no official receipt, and can be used against you later.
The solution:
Cameroon's tax office (DGI) sometimes issues tentative assessments called "avertissements-répartition"—essentially pre-filled returns with what they think you owe.
If you don't challenge these within 30 days, the assessment becomes final.
The problem: These estimates are often inflated or based on outdated information.
The solution: Never ignore official correspondence. Review every assessment immediately. Challenge in writing within 30 days if the numbers are wrong. Provide supporting documentation for your actual figures.
Tax audits focus on high-risk areas:
There's no fixed audit cycle—any year can be selected for review. Cameroon's statute of limitations is 4 years, meaning they can go back and reassess.
The solution: Keep meticulous records from day one. If you deal with related foreign parties, maintain transfer pricing documentation. Support every expense with invoices. Reconcile bank statements monthly. Treat every year as potentially auditable.
Many SMEs focus on the headline corporate rate (30%) and forget:
The reality: Your effective tax burden can easily exceed 40% of revenues when everything is factored in.
The solution: Work with a local accountant to model your full tax exposure. Budget accordingly. Don't be surprised when tax bills exceed your expectations.
Many countries offer simplified tax schemes for micro-SMEs:
Cameroon: New businesses get a one-year patente exemption. Very small traders can use flat-rate turnover taxes instead of full CIT calculations.
Gabon and others: Minimal turnover thresholds exempt the smallest sellers from VAT and some taxes.
The benefit: Lower compliance burden, reduced costs, time to establish systems before facing full tax complexity.
Don't try to go from fully informal to fully compliant overnight. Move gradually:
Use the first-year grace period wisely to build systems.
Tax codes in the CEMAC region change frequently. Cameroon's 2024-2025 Finance Laws introduced new council tax surcharges. Congo's 2025 law added mandatory e-invoicing.
How to stay current:
Ignorance is not a defense. Courts and tax offices expect you to know current law.
Local tax codes are complex and frequently updated. Many SMEs underestimate their effective tax rate (which in Cameroon reaches 33% with surcharges).
What a good accountant provides:
Cost vs. benefit: Spending 500,000-1,000,000 XAF annually on professional tax services is far cheaper than penalties, back taxes, or business shutdown.
This cannot be overstated. Good bookkeeping:
Minimum requirements:
Tools to consider:
Don't wait for them to come to you. Build a relationship:
Why this matters: Being visible and cooperative reduces suspicion. Tax officials who know you're making good-faith efforts are less likely to dig aggressively during audits.
Caution: Always demand official acknowledgments for payments or any "amnesty" programs offered. Never accept verbal assurances without documentation.
The temptation to operate purely in cash or under-report income is strong, especially when competitors do it.
Why resist:
But be realistic: Compliance is expensive and imperfect enforcement means many competitors cut corners. Focus on being clean enough that audits don't find major violations, while not over-investing in perfection that competitors ignore.
The balance: Aim to stay above the radar through timely filings and reasonable accuracy. Don't volunteer for martyrdom by being the only fully-compliant business in your sector, but also don't operate in the shadows.
| Country | Corporate Income Tax | Personal Income Tax (Top Rate) | VAT Rate | Key Other Taxes |
|---|---|---|---|---|
| Cameroon | 30% + 10% council = 33% (27.5% for small firms) | 11-38.5% | 19.25% | Patente 0.159-0.494% of turnover; Min tax 2.2-5.5% monthly; Excise 12-30% |
| Chad | 35% | 30% | 18% (9% on locals) | Excise 5-25%; Minimal license fees |
| CAR | 30% (20% for agriculture) | 40% | 19% (5% reduced, 0% exports) | Excise 25% on alcohol/tobacco/cosmetics |
| Congo | 30% (25% microfinance, 28% mining) | 40% | 18.9% (18% + 5% surtax) | Min tax 1% turnover; Excise 17.5-30%; Flat-rate 5-8% for small firms |
| Gabon | 30% (35% oil/mining) | 35% + 5% surtax | 18% (10%, 5%, 0% reduced) | Patente 15k-540k XAF/year; Telecom tax 1% turnover; Excise 22-40% |
| Equatorial Guinea | 25% | 25% | 15% | Min tax 1.5% turnover; WHT on dividends/interest |
You should engage a local accountant or tax lawyer if:
✅ Your annual turnover exceeds 50 million XAF
✅ You have employees
✅ You're registered for VAT
✅ You deal with cross-border transactions
✅ You receive any audit notice or tax assessment
✅ You're unsure how to calculate patente or other complex taxes
✅ You're transitioning from informal to formal status
✅ You want to legitimately minimize your tax burden
Cost range: Expect to pay 500,000-2,000,000 XAF annually for professional tax services depending on business complexity. This is not optional overhead—it's risk management.
Taxes in Cameroon and Central Africa are high, complex, and enforced inconsistently. The system is imperfect. Corruption exists. Many businesses operate informally without consequence—until they don't.
But here's the reality: businesses that formalize and maintain reasonable compliance have access to opportunities informal businesses never will.
Banks loan to businesses with clean tax records. Government contracts require formal registration. Investors demand audited financials. International partners need verifiable compliance.
You don't need to be perfect. You need to be defensible.
The winning approach:
The businesses that thrive in Central Africa aren't the ones that avoid taxes entirely—they're the ones that navigate compliance strategically while focusing energy on growth.
Tax compliance doesn't have to be overwhelming. With the right systems, professional guidance, and strategic planning, you can stay compliant while focusing on what matters: growing your business.
At CODEES Cameroon, we connect businesses with the resources they need to succeed—including trusted accounting and legal professionals who specialize in Central African tax compliance.
We can help you:
✅ Understand your full tax obligations across all Central African jurisdictions
✅ Set up proper accounting systems that meet OHADA standards
✅ Connect with certified accountants who can file returns and represent you
✅ Implement e-invoicing and digital compliance tools
✅ Plan your formalization strategy if transitioning from informal operations
✅ Optimize tax positions legally and strategically
Whether you're just starting out or scaling an established business, proper tax planning is essential. Don't wait for an audit or penalty notice to get serious about compliance.
Contact CODEES today for a consultation and let's build your tax compliance strategy together.
Taxes are inevitable. Penalties and business failure are not. Plan accordingly.
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