(Business in Cameroon) - This year, the Cameroonian Directorate General of Taxes has decided to implement a set of reforms to secure tax revenues resulting from the implementation of public expenditures.
According to this institution, these reforms include the establishment of withholding tax as soon as funds are released for expenditures carried out under exceptional procedures, the introduction of an 11% withholding tax on various bonuses paid, the dematerialization of procedures (online registration, tax notices) and the creation of a tax desk to monitor public entities.
There is also selective empowerment of public entities authorized to withhold tax. Let’s note that currently, those entities are the SNH, the Autonomous Amortization Fund, and the Road Fund.
According to the tax directorate, these measures are aimed at correcting the difficulties encountered in the collection of taxes resulting from the execution of public expenditure. Among these challenges, the tax authorities cite in particular the authentication of documents constituting the tax reports, the securitization of registration fees, the collection of taxes and duties resulting from expenditure carried out under exceptional procedures, the systematic non-reimbursement of deductions made, the absence of deductions on start-up advances, the tax treatment of certain staff expenses and the tax avoidance in some public entities.