Taxation Group Work

TAXATION ACCOUNTIN
GROUP WORK
DIFFICULTIES FACED BY COMPANIES IN PREPARING TAXES
GROUP 1
LEVIS BRANDON LIFONGO 16SB-002958
TASI MARTIN JUNIOR 17SB-004064
NDAM CALSON NDAM 17SB-004076
KONFOR NESTOL KAJOU 18SB-004276
AISHATOU JUBAIROU 16SB-002922
INTRODUCTION
In Cameroon, the Corporate Income tax rate is a tax collected from companies. Its amount
is based on the net income companies obtain while exercising their business activity,
normally during one business year. The benchmark we use refers to the highest rate for
Corporate Income. Revenues from the Corporate Tax Rate are an important source of
income for the government of Cameroon. This page provides - Cameroon Corporate Tax
Rate - actual values, historical data, forecast, chart, statistics,
Economic calendar and news. Cameroon Corporate Tax Rate - actual data, historical chart
and calendar of releases - was last updated on January of 2019.
Taxation will be one of your main concerns if you are moving to Cameroon, especially if
you intend to work there. Most workers, including expatriates, have to pay income tax. In
fact, the tax rate for them ranges between 10 and 35%, depending on your yearly income
threshold. Those earning more than CFA 5 million per year have to pay a 35% rate income
tax.
Note that the tax year starts as at the 1st January and ends on the 31st December.
Types of taxes
Cameroon's tax system includes different types of taxes.
Direct taxes:
 Corporate tax
 Personal income tax
 Permits
 Licenses
 Property tax
Indirect taxes:
 VAT
 Registration fees and stamp duties
 Special tax on petroleum products
 Special income tax
Para-fiscal charges:
 Audiovisual fees
 Contribution to the SCF
 Contribution to the National Employment Fund
 Municipal taxes
 Social contributions.
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:
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 establishment, 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.
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.
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 farfetched.
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.
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.

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TAXATION ACCOUNTIN

DIFFICULTIES FACED BY COMPANIES IN PREPARING TAXES

LEVIS BRANDON LIFONGO 16SB-002958

TASI MARTIN JUNIOR 17SB-004064

NDAM CALSON NDAM 17SB-004076

KONFOR NESTOL KAJOU 18SB-004276

AISHATOU JUBAIROU 16SB-002922

Cameroon's tax system includes different types of taxes.

This issue is still of fundamental interest in developing countries in which tax

Because it is important to master each tax in the way it is instrumented in order to

1. A single tax reference document

Taxation continues to be a permanent issue in State administration because of the

4. Computerizing the tax system :

Constraints force the DGI to buy a very powerful computer.

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