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Many small businesses in the informal sector in Cameroon fall under the discharge tax system. Most often taxpayers call it Impôt libératoire (in French) or Global Tax. The discharge tax is paid by those who are engaged in commercial, industrial handicraft or agro-pastoral activities that do not fall under the actual earnings, simplified tax or basic tax regimes exclusive of the payment of business license, personal income tax and VAT. The annual turn-over of the taxpayer should be less than 10 million francs CFA. Note should be taken that moral persons are not treated under the discharge tax regime no matter their turn-over.

Discharge Tax Rate

The discharge tax rate shall be established by the regional and local authorities who benefit from the proceeds of the tax. The tax is determined by category of activities as follows:

Category Based on Turnover

Category

Turnover

Range

A

turn-over less than 2 500 000fcfa

0 to 20 000fcfa

B

Turnover between 2 500 000 to 5 000 000

20 001 to 40 000fcfa

C

Turnover between 5 000 000 to 7 500 000

40 001 to 50 000fcfa

D

Turnover between 7 500 000 to 10 000 000

50 001 to 100 000fcfa

In addition to producers, traders and service providers that fall under category D, the following are also involved:

  • Baby-foot machine operators – less than 10 machines

  • Slot machine operators less than 3 machines

  • Pinball machine operators – less than 5 machines

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