CAMEROON TAX & LEGAL NEWSLETTER MARCH 2010

Transcription

1 CAMEROON TAX & LEGAL NEWSLETTER MARCH 2010 MAIN INNOVATIONS OF 2010 FINANCE LAW CALENDAR AND SCHEDULE OF THE MAIN TAX, SOCIAL & LEGAL OBLIGATIONS The objective OF MARCH of the 2010 finance law is triple: - Widen the tax base; MAIN INNOVATIONS OF 2010 FINANCE LAW The objective of 2010 Finance Law was triple: - Widen the tax basis - Secure the revenue of the State; - Strengthen the rights and guarantees recognized to the taxpayers. Our article will evoke the main measures of the new 2010 finance law. 1. PROVISIONS RELATED TO CORPORATE INCOME TAX Additi of a 14th paragraph exempting the Public hospital establishments from Corporate Income Tax; Additi of a paragraph ccerning the total deductibility of the s made to authorize research and development institutis exercising in the health, agriculture and animals sectors; The withholding at source by the public accountants and likened during the of invoices from the State budget; the decentralized regis and the public administrative institutis have no more the right to make the withholding at the source Corporate Income Tax;

2 Page 2/19 2. PROVISIONS RELATED TO PERSONAL INCOME TAX Interests accruing negotiable securities in respect of loans issued by the State and regial and local authorities are henceforth exempted from the Persal Income Tax; Instituti of a 7 % taking within the framework of direct sales by network. The tax calculated shall be increased by 10% as additial council taxes. It is the case of the pharmaceutical products qualified «food complements». 3. PROVISIONS RELATED TO VAT Exempti from VAT of medical equipments; Only products and materials acquired as from 1 st January 2010 are exempted; Exempti the operatis ccerning wood transformati: e level in the transformati of the wood is enough to apply the exempti; Deleti of the rule of the e mth gap: - The VAT shall be deducted during the correspding mth; - The VAT deductible during every mth of the 2010 financial law will be increase by a twelfth of the tax deductible from December Determinati of the proportial deducti by taking into account the specific turnover ; Taxati of companies operating games of chance and games of entertainment a base after a 40 % abatement. 4. PROVISIONS RELATED TO SPECIAL INCOME TAX Restorati of the opti Special Income Tax benefit of the oil & gas subctractors; as before the finance law 2009, the oil subctractors

3 Page 3/19 can again make the choice Special Income Tax regime, exempting of any other taxati. Obligati of informati within e mth in case of renunciati to taxati the basis of their returns. 5. PROVISIONS RELATED TO EXCISE DUTIES Applicati of a reduced rate of 12.5 % carbated drinks. Mineral waters produce locally are no more ccerned by the applicati of excise duty. Only imported mineral waters are subjected from now excise taxes at the rate of 25%. 6. MANUAL OF TAX PROCEDURES Deleti of the secti M4: deleti of the obligati of the certificati of accounts by a CEMAC Registered Chartered Accountant and registered with the Natial Order of the Chartered Accountants of Camero (ONECCA for it French acrym); - The rectified annual tax returns signed during the previous exercises in 2009 which will be deposited during year 2010 will not have to be certified by a CEMAC Registered Chartered Accountant; Obligati to notify adjustment with the deadline of 30 days as from the end of the operatis of spot inspecti ; Any pers who evades or opposes the exercise of the right of investigati shall be served a formal notice: applicati of the fines and the penalties planned in sessi M104 of the Manual of Tax Procedures in case of an oppositi to the right of investigati ; Taxati officers have the right to access to professial buildings, plots, warehouses, and professial means of transport ;

4 Page 4/19 Instituti of the penalties for late of sptaneous tax; any late return or shall entail to the applicati of a 10% penalty per mth of delay, without exceeding 30% of the principal tax due. 7. SPECIFIC PROVISIONS RELATED TO THE LOCAL TAX SYSTEM Law n 2009/ 019 of December 2009 ccerning the Local Tax System ; - Deleti of the naming " direct municipal tax " benefit of the instituti of a Local Tax of Development; - The Tax the Development does not ccern the mthly salaries of less than 62,000 XAF (see applicable table to the article 58 of the law above mentied); - The taxpayers subject to business tax and those subject to flat-rate tax are henceforth submitted to the same rate ctributi to the Local Tax of Development (see applicable table to the article 58 of the law above mentied); Precisis and simplificati ccerning the calculati of the rights of licences : the ctent in alcohol as the single criteri ; - From 1 st January 2010, the rights of license will be acquitted according to the new pricing ctained in the finance law PROVISIONS RELATED TO REGISTRATION DUTIES Exerati of charge of instruments and judgement transferring ownership of mortgaged property and real property rights to lending and micro finance institutis ; - Without applicati of the gradual stamp duty Exerati of charge of instruments of incorporati and ctinuance of a company as well as instruments to increase capital

5 Page 5/19 - Acts of incorporati, of ctinuance and capital increase registered before the 1 st January 2010 remain subjected to the of the degressive fees or fixed rights as the case may be. 9. OTHER TAX PROVISIONS Instituti of a legal depreciable and n depreciable tangible asset revaluati regime. The revaluati of fixed assets has to intervene 31 December 2012 at the latest ; Deleti of start-up costs and renewal of taxpayer's card. The obligati of registrati remains however current ; Extensi of the advantages of the tax regime of the structuring project in the educatial, medical, sports and cultural sectors ; Members of Approved Management Centres shall benefit from a 25% abatement of the declared profit. However when the applicati of the abatement has for csequence to put the member in overdrawn situati, it is held ly the Minimum of Percepti; Properties belging to public or private hospital and school establishment are exempted from property tax ; The n producti of the banking pledge in forest tax system entails at first the suspensi of the title of exploitati and its withdrawal if the forest company does not settle its situati during the durati of this suspensi 10. PROVISIONS RELATED TO CUSTOMS DUTIES Where the taxpayer fails to pay the requisite duties, taxes, penalties and other sums at the due date, the Director General of Customs or the competent Customs Sector Head shall serve him a reminder letter comprising, in additi to the references of the debt, its cause and amount ;

6 Page 6/19 Where, after the above mentied period, the debtor fails to comply, it will be served to him a writ signed by the judge ; The signed writ shall be served to the banks of the debtor for executi. It will be then an implementati of the seizures of furniture and grips of mortgages to mop up the debt ; After notificati of the writ, no challenge of the debt recovery acti shall be entertained ; Acti to challenge any additial amounts shall be subject to producti of supporting documents showing that the claim made by the Administrati is groundless and of an amount representing 50% of the sums owed, guaranteed by a first-rate bank ; Collectis relating to liquidatis and penalties calculated by the central services of the Director General of Customs or the Ministry of Finance as the case may be, shall, a priority basis, be assigned to the customs revenue office having jurisdicti in the head office or domicile of the debtor.

7 Page 7/19 CALENDAR AND SCHEDULE OF THE MAIN TAX, SOCIAL & LEGAL OBLIGATIONS OF MARCH 2010 SALARY TAX Rates : - From 0 to 2,000,000 XAF/ 10% - From 2,000,001 to 3,000,000 XAF/ % - From 3,000,001 to 5,000,000 XAF/ 25% Persal Income Tax individuals: - Up to 5,000,000 XAF 35% Categories of salaries NB: Withholding tax of - NB : Individual pay slip or form 7,7% salaries paid within the frame work of - DIPE /Public Treasury direct sales by network - Certified cheque/ Tax Collector (Additial Council - Bank transfer to the LTPU account at Taxes included) Bank of Central African States Tax Base : (Additial Council Tax excluded. Including rebate of 30% for professial expenses, and 500,000 XAF for family changes.) Finance Law 2008 & GTC : Secti 101 GTC : Sectis 30 & follows GTC : Secti 81 GTC : Secti 83 CRTV Ctributi Rate: according to the scales. Gross salary GTC : Secti Certified cheque/ Tax Collector - DIPE/ Tax Collector - Payment into the CRTV bank account Afriland First bank Tax basis : Gross salary of February 2010 plus benefit in kind Ordinance n 89/ 004 of 12 December 12, 1989 the Instituti of an Audiovisual Royalty

8 Page 8/19 Additial Council Taxes - DIPE / Tax Collector - Certified cheque / Tax Collector Rate : 10% Tax Basis : tax main amount GTC : Secti 193 Local Tax of Development ( Which replaces the old Municipal Tax) The woman which is married whose husband is an employee does not pay NB :The Tax the Development does not ccern the mthly salaries of less than 62,000 XAF (see applicable table) GTC : Sectis 58 Law n 2009/ 019 of December 2009 ccerning the Local Tax System Family allowance - DIPE / certified cheque / NSIF - Paid ly by employer Retirement - Certified cheque / NSIF - Bank transfer to BICEC account SOCIAL INSURANCE CONTRIBUTIONS Work accident and Professial illnesses - Certified cheque / NSIF - Bank transfer BICEC Rate: - General regime : 7% - Agricultural regime : 5,65 % - Educatial regime: 3,7% Tax basis : gross salary of February 2010 plus benefits excluding professial cost limited to 3,600,000 XAF Employers rate : 4,2% Employees rate : 2,8% Tax basis : Same basis as family allowances Rate : Group A : 1,75% Group B: 2,5% Group C: 5% Tax basis : Gross salary in February 2010 plus benefits in kind except professial cost Decree n 83/364 of 4 August 1983

9 Page 9/19 Professial training costs Employee s rate : 1% De in three files / NSIF, Yaounde Po Tax basis: Salary of Box 1610 March 2010 except overtime, bus, Bank transfer in BICEC allowances and costs paid by employee. HOUSING FUND ALLOWANCES Employer s ctributi Rate : 1,5% Certified counterfoil book/tax Authorities Bank transfer to Camero Housing Loan Corporati Employee s ctributi Tax basis : Salaries allowance, plus benefit in kind of March 2010 for the real amount Rate :1% Secti 21 of Labour Code & Ministerial Letter of 5 March 1973 Law n 77/10 of 13 July 1977 the instituti of a ctributi to the Land loan and fixing the part of this ctributi intended Natial Fund of the Employment Tax Authority Bank transfer to Camero Housing Loan Corporati Annual regularizati : NB : Employers should effect annual regulati taking into account benefit in kind the basis of the receipts and invoices relating to electricity, water and housing NATIONAL EMPLOYMENT FUND Ctributi to Natial Employment Fund Rate: 1% - Certified cheque / Tax Collector - Bank transfer into account of the Natial Employment Fund at SGBC Yaounde Exclusive Employer ctributi Tax basis : Salaries, allowances, plus benefit in kind of February 2010 real amount Tax basis: Salaries, allowance, plus benefit in kind of February 2010 for the real amount Law n 77/10 of 13 July 1977 the instituti of a ctributi to the Land loan and fixing the part of this ctributi intended Natial Fund of the Employment

10 Page 10/19 DM & Partners CORPORATE INCOME TAX, PERSONAL INCOME TAX SECTION NON-COMMERCIAL EARNINGS, PROFITS FROM AGRICULTURE Advance of Corporate Income Tax Rate : 1,1% Certified cheque / Tax Collector Tax basis : Turnover for the mth of March 2010 GTC : Secti 121 Advance of Corporate Income Tax withheld by public bodies and certain private establishments Sptaneous / Public accounting officer of the area Rate : 1,1% Tax basis: Turnover for the mth of February 2010 GTC : Secti 121 Advance of Corporate Income Tax withheld by forestry companies Sptaneous / Public accounting officer of the area Rate : 5,5% Tax basis : The amount of purchases of rough timber de during the mth of February 2010 with forestry company GTC : Secti 21 Advance of Corporate Income Tax withheld On the sales of oil productis for the developers of gas stati Bank transfer in the LTPU account at Bank of Central African States Rate : 0,55% Tax basis: Turnover for the mth of February 2010 ANNUAL CORPORATE INCOME TAX Tax return of revenue derived from business venture during the period serving as tax base Tax return presented in cformity with the OHADA accounting system Rate : 35% (Additial Council Taxes excluded) Tax basis : Taxable profits - GTC : Secti 17 GTC : Secti 18 GTC : Sectis 5, 6, 7

11 Page 11/19 DM & Partners ANNUAL PERSONNAL INCOME TAX CATEGORIY OF HANDICRAFT, INDUSTRUAL, COMMERCIAL AGRICULTURAL AND NON COMMERCIAL PROFITS Tax return of incomes during the past year Rate : From 10% to 35 % (Additial Council Tax return shall indicate the mode of Taxes excluded, including rebate of GTC : Secti ,000 for family charges) GTC : Secti 74 Tax basis: Taxable incomes TAX ON DISTRIBUTION OF PETROLEUM PRODUCT Tax Distributi of Petroleum Products Taxpayers/ Petroleum companies Rate: Super : 120 XAF/ litre Withheld t by the SONARA during the delivery of the taxable products or sptaneous by the legal or physical entity importer of said produced Sptaneous Payment, statement in 4 copies 2 first es are deposited in support of the to the cash desk of the tax collector of the place of the head office The third copy, dressed in the stamp of the tax collector to deposit in Directi of Taxati by the indebted within 10 days according to the date of the Gas oil: 65 XAF/litre Tax basis : Sales mth of February The fourth copy is kept by the indebted as accounting document EXCISE DUTY AND VALUE ADDED TAX ( VAT) General Rate 25% Excise Duty Tax basis : price of Sptaneous, Public Treasury service/ goods sold or imported during the Tax return in 3 copies mth of February 2010 GTC : Secti 229 GTC : Secti 125

12 Page 12/19 Reduced rate 12,5% Tax basis :Applicable carbated drinks and to tourism car with a capacity superior or equal to 2000 Cm3 imported during the mth of February 2010 At least days as so as the is de or creditor to VAT Sptaneous /Public Treasury Tax return in 3 copies Bank transfer into the LTPU account Bank of central African States VAT withheld at source by the State, regial and local councils, publics establishments and public companies in February 2010 Tax Authority/ Public accounting officer of the area Rate : Normal rate 19,25% Additial Council Tax included Reduced rate 0 In the export Tax basis : turnover tax excluded realized in the mth of February 2010 plus excise duty Withheld at source by the State, the decentralized regis with a measure of automy and the administrative public institutis invoices paid to the supplier during the mth of February 2010 Bank transfer into the LTPU Account Bank of Central African Bank SPECIAL INCOME TAX Payment out of Camero and out of Rate : % France Copyright The sale or leasing of licenses granting of patents, GTC : Secti 149 Decree n 2004/178 of 30 December 2004 GTC : Sectis 225 to 228

13 Beneficiary s account and treated as deductible expense in the payer s account. Page 13/19 trademarks processes and secret formulae The leasing of, or right to use cinema films or TV programs and films Remunerati for supply of informati relating to industrial commercial or scientific experiment Accounting, technical, financial study, support The leasing of industrial, commercial, or scientific equipment Tax basis : amount paid Remunerati paid to enterprises which undertake drilling, research or provide assistance to oil companies when these companies does not have permanent establishment in Camero Case of Payments towards France Use or ccessi use of a patent, trademark or a drawing or a model, a plan, a formula or a secret Use or ccessi use of an industrial, commercial or scientific equipment and for informati relating to experience obtained in the industrial, commercial field Remunerati for studies as well as technical, financial or accounting assistance Rate : 7,5% Tax basis : amount paid Applicati of the fiscal agreement of 31 March 31st, 1994 signed between France and Camero as well as various subsequent amendments

14 Page 14/19 Remunerati for study of scientific, geological or technical nature and for work of engineering related or related field Declarati of amount paid/ Tax authority Tax Collector/ certified cheque Bank transfer in the account of LTPU of Bank of Central African States PERSONAL INCOME TAX ON INCOME FROM INCOME FROM STOCKS SHARES withholding Revenue from shares, stocks and similar Rate : 16,5% tax within income the days Tax basis : On the period as Correspding certified minutes of the amount paid so as General Meeting or the Board of Director s is de or Tax return of sums paid to Public Treasure credit GTC : Secti 35 GTC : Secti 70 assigned to beneficiary Tax return of the amounts paid/ Tax Collector Bank transfer the LTPU account to bank of Central African States/Certified cheque Dividends and interest bds with a maturity of less than 5 years from the stocks of perss listed the stock market in Camero Rate : 5% Tax basis : () GTC : Secti 111 Certified cheque/ Tax Collector Dividends and interest bds with a maturity 5 years or more from the stocks of perss listed the stock market in Camero Rate : 10% Tax basis () GTC : Secti 111 Tax return of the amounts paid/tax Collector

15 Page /19 Capital gains transfer of shares for a gross amount superior to 500,000 XAF Tax Collector Rate : 11% Tax basis () Payment by the supplier in days of the mth in which the operatis were realized Certified cheque/ Tax Collector WITHHOLDING FROM PURCHASE Collected by : Rate : 1% Additial council tax excluded The industrialists, the farmers importers, Tax basis : Amount of Wholesalers, semi-wholesalers, the purchases made by Foresters except of those made by the ly trader the State, the municipalities and the domiciled perss abroad Or Value in customs of the goods For companies, not holders of a taxpayer s card Rate : 5% Additial Council Tax excluded Tax basis () GTC : Sectis 21, 91.2 For petrol stati owners during the purchase of petroleum products as well as exporters of staple products. Rate : 0,5% Additial Council Tax excluded Tax basis: () TAX ON GAMES OF CHANCE AND GAMES OF ENTERTAINMENT Tax Games of Chance and Games of Rate: 16,5%. Additial Entertainment Council Tax included Special form from the tax administrati Bank transfer in the LTPU account of bank of Central African States In case of starting of new devices in the course of exercise, to make a complementary declarati and a of the rights in 30 days following the event Tax basis : Gross income from games of the mth of February 2010 For the games of counterpart: the difference between the amount of the collecti at the end of part and GTC : Sectis 206 to 220

16 Page 16/19 The tax department delivers for every device tax sticker), that must be posted the device that of the initial stake For the games of circle the complete amount of the kitty WITHHOLDING ON LEASE RENTALS Withholding Lease Rentals Rate : 5% Tax Collector Bank transfer LTPU to Bank of Central African States Tax basis : Gross of leases paid February 2010 GTC : Secti 48 GTC : Secti 87 STAMP ON CERTIFICATE OF REGISTRATION OF THE DEVICES OF GAMES AND ENTERTAINMENT Stamp Certificate Rate : 1000 XAF GTC : Secti 557 Tax basis : By certificate STAMP DUTY ON ADVERTISING ON TOBACCO AND ALCOHOLIC BEVERAGES Every first Payment with state ctrol, for Rate : 10% mth of advertisements made by panels quarter Payment with the editors of Rate : 2% ( other amounts newspapers, for those installed in publicity, tobacco and received in Camero, and in the centre of the alcoholic beverages taxes of the profitable establishment of excluded) for rights the advertising, if the editor is installed during the settled outside Camero Tax basis : On the GTC : Secti 591 previous Payment with radio statis and with amount of the expenses quarter televisi ccerned, for of advertising advertisements by radio televisi Payment with the developers of cinemas, advertisements of cinema STAMP DUTIES ON BILL OF LADING OF THE TRANSPORT CONTRACTS Rate :,000 XAF Payment with the competent taxes manager Per bill of lading irrespective of the number of copies. GTC : Sectis 555 & 556

17 Page 17/19 For the operatis of the previous mth 1,000 XAF for each waybill issued for ctracts pertaining to the transportati of goods within the natial territory AXLE TAX Tax in the axle owners of the vehicles of payload at least equal to 03 ts, circulating in Camero 2,000 XAF per waybill issued for internatial ctracts pertaining to the transportati of goods Rate : According to the tnage and the nature of the good GTC : Secti 609 Tax return/regial inspecti of the Taxes Certified Cheque / Tax Collector Tax basis: See Table Bank transfer in the LTPU account of Bank of Central African States Tax in the axle for vehicles registered abroad after their entrance the Cameroian territory For vehicles registered abroad the of the fixed price makes at the latest in 05 days following the entrance the Cameroian territory Rate : Fixed right of, 000 XAF for vehicles registered abroad covering the period of mth Tax basis: See table

18 3 mths as from the date of signature of the act Page 18/19 Presentati of acts to the registrati / Inspecti of the registrati REGISTRATION FEES ON LEASES, MARKET, ORDER Registrati fees leases, subletting and Rate : Leases of house : private ctinuati, 5% Urban Building: 5% Rural Building : 2% GTC : Sectis 276, 281, 291 Commercial rural Leases 5% Commercial urban Leases 10% 1 mth as from the signature of the act of transfer Transfert of the Business - Certified cheque/ Treasurer payer - Bank transfer LTPU to Bank of Central African States Tax basis: Amounts paid Rate : % & 2% Plus fixed right: 4,000 XAF (appendix) GTC : Sectis 276 & 353 Tax Basis: Selling price of the goodwill or various elements comprising the business together with charge Letter of terminati of private leases Rate : fixed right 50,000 XAF GTC : Sectis 276,353, mth 0r : At the latest 1 mth as from the date of signature of the public notary deed Agreement, markets and order of the State, the legal entity of the State, the public enterprises, public notary deed Presentati of acts to the Registrati / Registrati Inspecti Certified Cheque / Treasurer payer Bank transfer in the account of LTPU Bank of Central African States Rates : 2%, for markets, public Order whose amount is upper or equal to 5,000,000 XAF, plus right Fix of 50,000 XAF 5%, for markets and public order of amount CGI : Secti 350 CGI : Secti 543