CHAPTER ONE

COMPANY or CORPORATION TAX

Company tax is an income tax on net taxable income or net profit before taxes realized by an artificial
person during a given year. The taxable income is derived from the accounting profit (or income), after
making necessary adjustments.
The taxable income is the sum of incomes from all taxable sources, less deductions for charges on
income paid, and personal allowances and reliefs. Otherwise to say, the taxable income is derived from
the accounting profit after necessary adjustments.

I.1 SCOPE OF APPLICATION

A. Companies and collectivities liable to the Company Tax
- All incorporated businesses carrying out profit making activities;
- All Micro-Finance Establishments and their unions with lucrative activities, common initiative
groups, mutual organizations, etc. (FL 2011);
- Public organizations carrying out profit making activities;
- Civil Societies that carry out profit making activities;
- Civil Societies among whose members is at least a public limited company.
NB: See Sections 3 of the GTC for a full list.
B. Entities whose subjections are optional.
 Partnership Firms;
 Joint-Ventures;
 Financial Syndicates.
They are not by law obliged to be taxed by company tax but if they chose to be assessed under company
tax, this declaration should be made at most in the month of March and is irrevocable. All partners are
required to sign for this option.

C. Entities exempted from the Company Tax. (Sect. 4 GTC).

- Artificial persons carrying out Non-Profit-Making activities or non lucrative activities;
- Not-for-profit agricultural establishments;
- In short, establishments registered as a not-for-profit organization or whose activities are observed to
be non-lucrative such as:
 Regional and local authorities (Councils) and their public utilities services;
 Societies and bodies, responsible for rural development, which are recognized as being of public
utility;
 Real estate public bodies for the allocation of low cost housing;
 Private clubs and societies for their nonprofit making activities;
 Non profit private education establishments with non lucrative objects;
 National Social Insurance Fund for the share of profit coming from the contribution on salaries;
 Economic interest groups for share of their profit to members that are natural persons.
An exhaustive list is found in section 4 of the GTC.
NB: the right to have the status of a not-for-profit organization (NFPO) and to be exempted from the
company tax is only granted by the ministry of finance. This right depends neither on the objective nor
the legal status of the organization as declared by the owner(s) on its creation.

D. Territoriality of the Company Tax.

The profits taxable by the C.T are those of companies operating in Cameroon or that are obtained on
operations realized on Cameroon soil, taking into consideration international conventions.

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I.2 ASSESSMENT OF THE COMPANY TAX
A. Period of assessment (Section 15 GTC)
The CT is levied on the Fiscal Profit obtained for a period of twelve months corresponding to the fiscal
year which happens to coincide with the calendar year. However, for the first year of operations this
fiscal period may be:
- Less than twelve months if the entity starts its operations during the 1 st semester of the fiscal year
(i.e. between January and June 30th). In this case the company will present its final accounts by
the end of this same fiscal year.
- More than twelve months if the entity starts its operations during the 2 nd semester of the fiscal
year (from July 1st to December 31st). In this case, the company shall present its final accounts
by the end of the next fiscal year.

B. The Determination of the Fiscal Results (Section 5 GTC).

The determination of the company tax requires the application of fiscal rules which lay down the
condition of deductibility of expenses, and taxation or exemption of revenues. This calls for the
adjustment of the Accounting Net Income to the Fiscal Net Income.

The relation between Accounting Profit and Taxable or Fiscal Profit

The taxable profit is the base on which company tax is calculated. This is obtained after making
necessary adjustments on the accounting profit.
- Accounting profit or income = Accounting Revenues – Accounting Expenses
- Taxable profit or income = Accounting profit + Reinstatements – Deductions
Reinstatements:
These are items which come in to increase the accounting net income as projected by the profit and
loss account. The mechanism consists of adding to the Accounting Net Income expenses which were
wrongly deducted or overstated and revenues which were not accounted for or which were wrongly
deducted or understated.
Deductions:
These are items which come in to reduce the accounting net income as projected by the profit and loss
account. The mechanism consists of subtracting from the accounting net income those expenses
which were not accounted for or which were understated, those revenues which were overstated or
wrongly accounted for, and tax allowances and relieves.

NB: Two reasons justify the adjustments made on the accounting net profit.
- Accounting net profit respect accounting principle and rules which at times differ from tax laws.
Of course, the fiscal law prevails over accounting principles in matters of taxation.
- Tax payers with the intention of reducing the tax burden may violate the accounting principles in
establishing their results. In that case the tax officers need to verify all the works done by accoun-
tants to be very certain that there was nothing of ill intention.

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Table for the determination of fiscal profit
Element Calculation Amount
Accounting profit ANI
Add: reinstatement
-part of understated revenues +X1
-taxable unaccounted revenues +X2
-part of overstated expenses +X3
-unjustified expenses +X4
Total X X

Intermediary Fiscal Net Income IFNI

Less: deductions
-understated expenses Y1
-unrecorded expenses Y2
-overstated revenues Y3
-tax exempted recorded revenues Y4
-fiscal relieves & allowances Y5
Total Y -Y

Fiscal Net Income (or Taxable Income) FNI

C. Computation, Payment and Accounting for the Company Tax

To compute the company tax liability and the income tax due for the fiscal year, the following aspects
are to be taken into consideration:
The rate of the tax;
The advance payments on account made during the fiscal year;
The annual tax liability;
The minimum levy for the annual company tax; and
The balance of the tax due.

1. The rate of the Company Tax in Cameroon (section 17 GTC)

The principal rate is 30% of the annual taxable profit and added on this is 10% of the 30% of the taxable
profit. Thus the effective rate is 33%. (30% + 10% of 30%)
2. Advances of the Annual Tax Liability
According to section 21 of the GTC, companies liable to the payment of the company tax usually pay
advances on the company tax of the period within that period so as to relief them from paying a heavy
lump sum at the end of the year. The advances involve:
2. a. Tax advance on turnover
- 2.2% of the annual monthly turnover for those under the Actual Earning System (AETS); However,
there are some peculiar sitautions.
- For production firms in the flour-milling sector, 2.2% of turnover realized after 50% abatement;
- For firms subject to the AETS and falling under regulated profit margin sectors, one installment representing
14% of gross margin shall be paid no later than the 15 th day of the following month. Such installment shall be in-
creased by 10% as levy for additional council tax.
NB: Within the meaning of this section, the under-mentioned distribution sectors shall be considered regulated
profit margin sectors: ‐ petroleum products and cooking gas; ‐ flour-milling products; ‐ pharmaceutical products;
‐ press products
However, taxpayers falling under regulated profit margin sectors may opt for the ordinary law regime where it is
more favourable to them. To this end, they shall inform their Taxation Centre by simple letter not later than 31
January. In this case, the installment shall be calculated at the rate of 2.2% applied to the turnover. The option
shall be irrevocable until the end of the fiscal year.
The above advances shall be deducted at source during settlement of bills paid from the budget of the
state, regional and local authorities, and public administration establishments.

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-5.5% of monthly turnover for tax payers classified under the simplified taxation system;
- For companies not registered in a taxation center, the installment rate shall be 10%. This rate shall be
increased to 20% for forestry companies where, in addition, they do not provide evidence of possessing
a logging permit duly issued by the competent authority.

NB:

- The tax advance on turnover for the month is paid not later than the 15th of the following month.

- Notwithstanding the above provisions, the rate of the advance of the company tax shall be fixed at 5.5%,
irrespective of the tax system of the service provider for invoices relating to public procurement amounting to
less than 5 million FCFA.

Accounting entries to record the advance are:

During the payment of the advance:
Dr. 4492-state, advances & payments on account for taxes
Cr. Class 5 accounts e.g. cash or bank
At the end of the fiscal year to determine the outstanding tax payable;
Dr. 441-state, tax on net income
Cr. 4492-state, advances & payments on account for taxes

2.b. Tax advance on purchase

A prepaid tax on the amount of importation or purchase transactions for resale in state should be levied
on:
- Importation by traders, including those accessed under the global earning system;
- Purchases made by traders who are manufacturers, farmers, importers, wholesalers, semi-wholesalers, forest
exploiters;
- Purchases of petroleum products by fuel filling stations owners and purchases of basic necessities by
exporters;
- Transactions carried out by enterprises which are not in hold of the tax payer’s card.

Exempted from the payment of the advance tax on purchase are:

-Importation carried out by tax payers considered under special management units as defined by the
Directorate of Taxes;
-Purchases carried out by the state, councils, and non residents from industrialists, agriculturists,
importers, wholesalers, retailers and timber exploiters;
-Purchases made by industrialists who are registered and who are accessed under the actual earnings
System, where purchases are for the operations of their enterprises.

Rates of the advance tax on purchase:

Rate AETS STS GTS taxpayers not registered

with a taxation center
2% traders / /
of purchases
5% traders taxpayers
of purchases
10% Taxpayers engaged in taxpayers
of purchases import activities
14% of the On the gross margin for the purchase of goods with regulated prices, irrespective of the tax
gross margin regime.
15% Taxpayers not registered with a taxation centre and engaged in import activities.
of purchases
20% Where the taxpayer carries out the sale of in-bond goods
of purchases

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For imported goods, the basis of calculation of the advance payment shall be the customs value of the goods.
It shall be collected as follows:
- As concerns imports, by customs services under the same conditions as customs duties;
- In other cases, by the supplier who shall pay it in within the first 15 (fifteen) days of the month following
the quarter during which the transactions were made.
The advance payment or prepayment is not recoverable on the price. It shall be calculated without adding the
additional council tax.
For persons subject to the company tax or personal income tax, the sum deducted in advance as down payment
shall represent an installment of the monthly or quarterly installments.
Excess payments shall be deducted from subsequent installments. In case of cessation of activities, they shall
be reimbursed.
Accounting entries to record the advance on purchase:
During purchase:
Dr. 4478- prepaid taxes on purchase deducted at source
Cr. Class 5 accounts e.g. cash or bank
At the end of the fiscal year to determine the outstanding tax payable;
Dr. 441-state, tax on net income
Cr. Dr. 4478- prepaid taxes on purchase deducted at source

2.c. The advance tax on Real Estate Income (Section 89 GTC)

The GTC in its sections 87, 88, 89 and 90 brings out three modalities:
i) Tax advances to be deducted at source on rental revenues.
- The rate of this deduction is 15% of the gross revenue
- Only public establishments, government services, artificial persons, and persons classified under the
actual earnings and simplified taxation systems shall carry out this deduction.
- The deduction shall be made by persons paying the rents who shall pay it to the taxation centre of the
area of their locality not later than the 15th of the month following the actual payment of the rents.

ii) Rental Revenue Tax Advances Not Deducted at Source

The GTC in its section 87 states that rents paid to persons assessed under the actual earnings system
shall be exempt from any deduction at source. According to section 89, these persons shall declare and
pay 5% of their gross rental revenue received each quarter by the 15th of the month following the end of
the quarterly period.

iii) Tax advances on profits from the transfer of real estates

Section 90 of the GTC stipulates that a 10% flat rate deduction shall be made by the notary on the gains
realised by the vendor or transferor on the transfer of real estates. This deduction shall be paid before the
registration formality using an official form supplied by the administration.

Accounting entries for the advance payment of 5%:

During the year when the payments are made
Dr. 4492-State, advances and payments on account for taxes
Cr. Cash account
After the end of year during the determination of the outstanding tax payable
Dr. 441-State, tax on net income
Cr. 4492-State, advance and payments on account for taxes

2.d. Tax advance on income from securities: (Section 70 GTC)

The taxable Revenues

According to Sections 35 and 36 of the GTC, the following incomes shall constitute revenues from secu-
rities:
- Revenues from shares and stocks; i.e. dividends and all such revenues.
- Revenues from debentures or bonds; i.e. interests, and redemption premiums on bonds or debentures

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- Revenues from financial assets, deposits and cautions; that is, interest received on mortgage debts,
sight and fixed term deposits, and current accounts.
- Capital gains, i.e. profits from the transfers, disposals of securities and rights over natural resources
Exempt Revenues
According to section 43 of the GTC, the following categories of financial revenues shall be exempt
from the personal income tax on income from securities:
- Interest from loan stock issued by the state and its decentralised organs,
- Interest from saving accounts with principals of less than 10 million Francs,
- Interest from savings for housing purposes,
- Interest from cash vouchers,
- Capital gains of value less than 500 000 Frs.
- Net capital gains realized by natural or legal persons on the stock market in Cameroon.
- Interest on external loans with accrued duration of at least seven years.
The taxable base of revenues from securities
According to section 44 of the GTC, the base will be determined as follows:
- The gross value of dividends
- For debentures or bonds, it will be the total interest or revenue received.
- For redemption premium, it will be the difference between the redemption price and the issue price.
- The gross value of interest for financial assets, deposits and cautions.
- The capital gain, for the disposals of financial assets.
- In case of a net capital loss incurred during a period, that loss can be carried forward and netted of on
the capital gain realised in the four future financial years.

The Rate
- Tax on dividends earned on inter-company investments: A tax rate of 16.5% (15% as principal and
10% of the principal, as additional council tax) shall be applied on all types of income from securities.
This tax shall be deducted at source, and paid at most 15 days that follow the payment of the dividend,
when paying dividend on inter-company investments. It shall represent an advance payment of the
company tax for the person receiving the proceeds.
- The tax rate on dividends with a maturity of less than 5 (five) years as well as other proceeds from the
stocks of natural or legal persons listed on the stock market in Cameroon shall be fixed at 10%.
- This rate shall be fixed at 5% for proceeds from private or public company bonds with a maturity of five (5)
or more years.

The computation will be as follows for dividends and interests:

For unlisted companies;
ND=Net dividend
GD=Gross dividend
TD=Income tax deducted at source, where TD=GD x r%; r= 16.5.%. For example, if
ND= GD –TD
= GD 16.5% x GD
= GD (1-0.165)
= GD x 0.835
Thus GD = ND/0.835
The accounting recordings shall be as follows:
- After the declaration of the dividend:
The person receiving the dividend will enter the declaration as follows;
Dr. 4711- sundry debtors (by the net dividend receivable)
Dr. 4478- state, tax deductions at source
Cr. 772- income from equity investments (by the gross dividend)
The person paying the dividend shall enter the declaration as follows;
Dr. 1301- profit for appropriation (gross dividend)
Cr. 465- shareholder, dividends payable (by the net of the dividend)
Cr. 4424- taxes and rates recoverable on shareholder (by the income tax to be deducted)
- After payment of dividend:

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 The person receiving the dividend will enter the payment as follows;
Dr. 57-Cash account (by the net of the dividend)
Cr. 4711- sundry debtors (by the net dividend receivable)
The person to pay the dividend shall enter the payment as follows:
Dr. 465- shareholder, dividends payable (by the net of the dividend)
Cr. 57-Cash account (by the net of the dividend)
After paying the deducted tax to the state (at most 15 days after paying the dividend)
Dr. 4424- taxes and rates recoverable on shareholder
Cr. 57-Cash account

-Tax on capital gains:

According to Sect. 111 of the GTC, ‘all capital gains realized in the Cameroon stock exchange market
shall be exempted from the company tax, the capital gain tax and any other tax of the same nature’.
However, the disposal of securities can take place in other domains other than the stock exchange
market. For instance, this can be done through banks. If realized out of the stock exchange market, the
rate of 16.5% is employed to tax these gains.
The accounting entries will depend on whether the capital gain is on a marketable security or an equity
security.
Capital gain on short-term securities
The income is recorded as follows:
Dr. Cash or 486-Claims on the disposals of marketable securities
Cr. 50-Marketable securities
Cr. 774-Incomes from marketable securities
Fifteen days after receipt of income, the tax is paid and recorded as follows:
Dr. 4492-State advance and payments on account of taxes
Cr. cash
Capital gains on long-term securities
The recording procedures are as follows:
Recording of disposal price:
Dr. 57-Cash or 486-Claims on the disposals of marketable securities
Cr. 826-Revenue from disposal of fin. Fixed assets
Recording of the provision of the period (if any)
Dr. 6972-fin. Provisions on fin. Fixed assets
Cr. 296-provisions for depreciation of equity securities
Cancellation of total provisions and depreciation
Dr. 296-provisions for depreciation of equity securities
Dr. 816-Book values of disposals of fin. Assets
Cr. 26-equity securities
Recording of the payment of capital gain tax from the disposal of financial fixed assets: (the capital gain
must be more than 500,000FCFA before being liable to this tax.)
Dr. 4492-State, advance and payments on account for taxes
Cr. 57-Cash
-Interest from financial assets
According to paragraph 1 of Sect. 111 of the GTC, interest from bonds with a maturity of less than five
years earned by persons listed on the stock exchange market in Cameroon shall be taxed at a reduced
rate of 10%. This rate shall be 5% on the remunerations of listed private or public enterprise bonds with
maturities of five years or more.
According to paragraph 2 of Sect, 111 of the GTC, ‘all interest earned on bonds issued by the state or
decentralized organs of the state shall be exempted from the company tax and any tax on incomes from
securities’. All contrary cases shall be taxable.
According to Sect. 43, 44 and 70 of the GTC, the taxable base shall be the gross value of the interest
earned on financial assets, deposits and cautions, and the rate of the income tax here shall be 16.5%.
The accounting entries shall be as follows:
When interest is earned;
Dr. cash or bank ………………………..…net value of interest
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Dr. 4478-PIT on income from securities…deducted income tax
Cr. 778-Income from fin. Risks................….gross value of interest
Accounting entries at the end of the year for the declaration of outstanding company tax;
Dr. 441-State, tax on net income… deducted income tax
Cr. 4478-PIT on income from securities…deducted income tax

3. Annual declaration of advances on company tax (See Table 25 STR for the Standard System)

4. Determination of the Annual Tax Liability

The annual tax liability is determined considering these two variables: the Taxable Profit (i.e. the fiscal
net income) and the Minimum Levy or Tax set for the annual company tax.
4. a .The annual tax liability based on the taxable profit is simply the;
Company tax liability = fiscal net income (taxable profit) x rate (33%) 1)
The fiscal net income is rounded down to the nearest 1,000fcfa.
NB: table 23 of the STR is employed to determine the company tax.
4. b. The annual tax liability based on the Fiscal Minimum Tax;
This method is employed:
When 33% of the taxable profit is less than the Advance Company Tax on Turnover collected during
the year; or
The fiscal net income is a net loss.
If it is the case,
- The total turnover (before T.O. tax) for the fiscal year ended is rounded down to the nearest
1,000fcfa;

- The rounded amount is multiplied by the minimum levy rate (either 2.2% or 3.3% or 5.5%) ac -
cording to the taxation system and the status of the taxpayer (importer or not) to obtain the an -
nual tax liability. That is:

Company tax liability = Annual Turnover x 2.2% or 3.3% or 5.5% respectively (Formula 2)
NB: table 23 of the STR is employed to determine the company tax, when using this approach.
According to paragraph 2 of Sect. 22 of the GTC, the annual company tax liability shall not be less
than the advance tax on turnover. Otherwise to say, the annual tax liability shall not be less than
2.2%, 3.3 % or 5.5% of the annual turnover respectively.
2.2% of the annual TO for taxpayers under the actual earning regime;
3.3% of the annual TO for taxpayer-traders who do not import and under the simplified taxation
system;
5.5% of the annual TO for taxpayers who are producers or service providers, or importers and under
the simplified taxation system.

5. The company Tax Payable or Due for a fiscal year ended

This process is simplified using table 22 of the Statistic and Tax Return (STR).
Net accounting profit
+ Reinstatements
=Intermediary fiscal net income
- Deductions
= Fiscal net income
From here we calculate:
2%, 3% or 5% of annual turnover = A
And 30% of fiscal net income rounded down to the nearest thousand = B
If A > B; it is table 24 of the STR that is to be filled
If A < B; it is table 23 of the STR that is to be filled.

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Mechanism of the payment of Company Tax

The company tax due at year end is determined thus:

Company Tax Payable = Annual Tax Liability (33% of the Taxable Profit)
+ Tax on incomes not deducted at source
- Advances and payments on account for taxes
- Tax abatements and reliefs
The balance payable is paid by a single installment on or before March 15st of the coming fiscal year.

6. ACCOUNTING FOR THE COMPANY TAX

In addition to the entries made for the advances and payments on account for the year, the company tax
is recorded by taking into consideration two situations:
- When the tax is based on the net profit; or
- When the tax is based on the fiscal minimum tax.

a. Case where the tax is based on the Net Profit

This is when there is a net profit and at the same time the tax on the net profit is more than the fiscal
minimum tax. The net profit before tax (revenue - expenditure) is recorded on the credit side of account
131 – net profit. The following items should be taken into consideration for the full accounting records
of the company tax after it has been determined.
131- Net profit;
441- State, tax on net income;
4478- State, taxes deducted at source (for prepaid taxes on purchases, taxes deducted at source on real
estate income and incomes from securities);
4492- State, advances and payments on account for taxes;
521 or 571 – cash or bank
891- Income tax of the period (company tax = 33% of taxable profit)
 Recording of the company tax liability: indebtedness toward the state:
Dr. 891- Income tax of the period (company tax = 33% of taxable profit)
Cr. 441- State, tax on net income (company tax = 33% of taxable profit)
 Setting off the expense (company tax) against the profit
Dr. 131- Net profit (company tax = 33% of taxable profit)
Cr. 891- Income tax of the period (company tax = 33% of taxable profit)
 The advance payments made during the year reduce the indebtedness towards the
state
Dr. 441- State, tax on net income
Cr. 4492- State, advances and payments on account for taxes
Cr. 4478- State, taxes deducted at source
 Payment of the outstanding company tax
Dr. 441- State, tax on net income;
Cr. 521 or 571 – cash or bank

b. Case where the tax is the Fiscal Minimum Tax

This occurs when the company incurs a loss or when the tax on the net profit realized by the company is
less than the fiscal minimum tax (i.e. 2.2% or 3.3% or 5.5% of annual T.O).
The net loss before tax (revenues - expenses) is recorded on the debit side of account 139 – net loss. In
this case, the annual liability will be the fiscal minimum tax. The following items should be taken into
consideration for the full accounting records of the fiscal minimum tax after it has been determined.
131- Net profit
139- Net loss
441- State, tax on net income
4478- State, taxes deducted at source
4492- State, advances and payments on account for taxes
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891- Income tax of the period (company tax = fiscal minimum tax)
 Recording of the fiscal minimum tax
Dr. 895- Income tax of the period (company tax = fiscal minimum tax)
Cr. 441- State, tax on net income (company tax = fiscal minimum tax)
 Transfer of the expense (fiscal minimum tax)
This will depend on whether there is a net loss or a net profit.
Case of net loss:
Dr. 139- Net loss (fiscal minimum tax)
Cr. 895- Income tax of the period (fiscal minimum tax)
Case of net profit:
Dr. 131- Net profit (fiscal minimum tax)
Cr. 895- Income tax of the period (fiscal minimum tax)
 The tax advance payments made during the year reduces the indebtedness towards
the state
Dr. 441- State, tax on net income (sum of all the advances)
Cr. 4478- State, taxes deducted at source (sum of all the advances deducted at source)
Cr. 4492- State, adv. and payments on account for taxes (sum of advances paid within the year)
NB: there shall be no payment of the tax balance as the advances (the fiscal minimum tax) that
constitute the tax have already been paid to the state.

7. Determination of the After Tax Income

The following items are taken into consideration for the determining of the net profit or loss after tax
(net profit or loss for appropriation):
- Personnel participation: where employees of a company haves acquired the right to participate
in the profit of the company (personnel profit sharing scheme);
- The Income Tax.
The net profit for the period is the balance of account 1301 and it is calculated as follows:
Net profit for appropriation
For the period (account130) = Ordinary Activity Net Income (account 137)
± Extraordinary activity net income (account 138)
- Participation of workers (account 87)
- Company tax (account 891)
a. Personnel Participation (account 87)
This account record the amount allocated by the business to a legal or contractual fund to the benefit of
employees. Participation is considered as an item of the allotment of profit before tax. This usually
refers to the bonus to the employees of a business that is given either in form of cash or shares, based on
a percentage of the profits. It should be differentiated from:
- The participation of employees to the capital of the business, which is recorded against the capi-
tal account;
- Payments made to employees (for the provision of any work force) in relation to the turnover
realized such as commissions, which should be recorded against personnel expenses account.
The accounts provided for the recording of personnel participation are:
871- Legal profit sharing scheme;
874- Contractual profit sharing scheme;
878- Other schemes.
For full accounting record to be made for personnel participation, two steps are involved:
 Recognition ascertainment of part of profit that will be allotted to employee:
Dr. 87- personnel participation
Cr. 426- personnel, profit sharing scheme
 When closing accounts
The sums levied for Personnel Participation are set off against the profit, contributing as such to the
determination of the net profit (before tax).
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Dr.131- Net Profit
Cr. 87- Personnel Participation
NB: Employees do not benefit from the profit sharing scheme when the business realizes a loss.
Therefore, account ‘87 personnel participation’ will not be used in this situation.

b. The Income Tax

It is the share of profit obligatorily allocated to the state as tax on profit. It is recorded by the debit of
account 89- net income tax and its sub accounts include:
891- Tax on net income of the fiscal year;
892- Tax arrears on previous net income (past year’s tax)
895- Fiscal minimum tax;
899- Tax credit and relief on net income tax;
-
Tax arrears (past year’s taxes) are recorded by the debit of account 892- tax arrears on previous net
income with the credit of account 441- state, tax on net income. The fiscal minimum tax (account 895) is
used when the 33% of taxable profit is less than the minimum levy rate (2.2%, 3.3% or 5.5%) applied on
the annual turnovers.
Tax credit or tax deduction is recorded by the credit of account 899- tax deduction, with the debit of
account 4497- state reduction of tax obtained.

THE FISCAL ANALYSIS OF EXPENSES AND REVENUES.

A. FISCAL ANALYSIS OF EXPENSES

The accounting profit is given by the difference between revenues and expenditure or expenses recorded
in the books of accounts of the company. In most cases this does not correspond to the fiscal profit
chargeable to corporation tax because tax payers have the tendency of overstating or inflating expenses
and in the same line understating or deflating revenues with the aim of reducing as much as possible the
net profit before tax to be declared for the calculation of the company tax liability for the fiscal year.
A fiscal analysis of expenses then has to be carried out on expenses presented by a company in its profit
and loss account in order to bring out which expenses were not deductible or overstated, so as to
reinstate them into the accounting net income. Likewise, some expenses may have been wrongly
accounted for; as such, they have to be deducted from the accounting net income.

a. General conditions for a charge (expenses) to be deductible:

-If the value of the expense is 500,000fcfa or above, it must have been paid by any other means apart
from physical cash.
-The source document carrying the expense must carry the unique identification number of the taxpayer,
except for documents from foreign suppliers.
-The expenses should be lawful (licit);
-The expenses should not be sumptuous (i.e. they should not be costly, overstated, exaggerated or
inflated);
-They should be a direct relation between the charge and the business operating activity. They should
not be for personal purposes;
-The expenses should be recorded and backed by accounting documents and should be part of the
expenditure of the fiscal period as stipulated by the accruals account concepts;
-All payments made to persons resident in a country or an area considered as a “Tax Haven” by the
Cameroon tax law shall not be deductible.
-They must not be fines or penalties.

b. The fiscal classification of expenses

Beside the general conditions for deductibility outlined above, some specific fiscal rules still apply for
particular expenditures or expenses, to say whether they should be deducted or not, in order to determine
the fiscal results of the company. It is preferable we consider these expenses by their natures so as to say
whether or not an expense is eligible for deduction.
Page 11 of 23
1)-Purchase and variation of stock (Account 60)
Besides the general conditions, the rules of stock valuation should be respected. Purchases and
consumptions of materials and stores are analyzed in table 16 of the statistics and tax return.
2)-Transport expenses (account 61)
The general condition for deduction of expenses should be fulfilled. However, the following specific
conditions should be fulfilled;
- Traveling expenses paid to employee or salaried share holder on leave and the immediate family
are deducted only if the journey was effective.
- For salary workers, the transport allowance is deductible if and only if they do not give rise to
reimbursement upon presentation of the actual bill or invoice.
State what should be the attitude of the tax agent faced with a situation where a company provides two
service cars to a senior staff who equally receives a monthly flat allowance for transportation of
160,000fcfa?
3)-External services-A (account 62)
The general condition for deduction of expenses should be fulfilled. However, the following specific
conditions should be fulfilled;
o Rental expenses (account 622)
-Rents on movable assets (e.g. machinery, equipment): they are deductible if paid to shareholders or
partners with less than 10% share value. Shares of spouse, ascendants and descendants are considered
belongings to the shareholders or partners.
-Rents on immovable assets (e.g. lands and buildings): they are deductible if general conditions are
respected. The clause on shareholder does not apply here.
o Repairs and maintenance (account 624).
They are only deductible if their objective is not to increase the lifespan of the assets in question. Capital
expenditures are therefore not deductible.
o Insurance premiums:
Generally, they are deductible if and only if the occurrence of the risk covered will lead to the
diminution of the net assets of the enterprise. It is therefore admitted as general expenses, insurance
premiums aimed at covering risk of fire disasters, theft of fixed assets and stocks, or non-recovery of
debts.
For health insurance, they are deductible if:
-it is paid on behalf of the personnel and if the insurance company is located within the national
territory;
-if there is no reimbursement of the hospital bill to the benefit of the personnel insured. Other wise to
say the reimbursement of the same hospital bill is not figuring any where again as deductible expenses.
The law further insists that it should be for the benefit of all the personnel, or a given category of the
personnel and not for an individual.
B. External service B (account 63)
The elements of account 63 are deductible when they fulfill the general conditions of deduction of
expenses. However, there are some exceptions:
o Head office expenses and royalties for studies, research, technical, financial or ac -
counting assistance.
These expenses are usually recorded in the following accounts:
621-general sub contracts;
626-research, engineering and documentation; or
632-intermediation and consultancy remunerations;
Definitions:
Head office expenses are those incurred due to the relation existing between agency and the head office.
They are usually incurred by hiring the services of external intermediary persons, whether moral or
natural and are usually recorded in either account 62 or 63.
Financial assistance concerns sums advanced or lent to the enterprises, including other financial
services such as guarantee.
Page 12 of 23
Technological assistance corresponds to the supply of technology.
Accounting assistance can be manifested in many forms such as the timely detachment of officials to
follow the setting up of accounting systems and accounting audit missions.
Limit of deductibility:
Head office expenses and the other above mentioned expenses rendered to Cameroonian enterprises by
foreign or Cameroonian natural or artificial persons are deductible to the limit of 2.5% of the Net
Taxable Income before the deduction of these expenses; or 1% 0f the annual turnover for public works
firms and 5% of the annual turnover for research work and design firms (including engineering
consultancies). (FL2013)
Practically, the total expenses are reinstated and after the calculation of the Intermediary Taxable Net
Income, at most 5% of the intermediary taxable net income is deducted.
It therefore means that amounts above the limit are not deductible and eligible for reinstatements.
If the actual amount of the expenses is less than the limit calculated, the actual amount should be
considered and deducted. If it is greater than the deductible limit, the limit should be considered and
deducted.
In case of deficit, this provision shall apply to the intermediary net profit of the last financial year that
registered a profit, with no limitation of time.
Example: an enterprise realizes an accounting profit of 2,000,000fcfa and the charges to be reintegrated
amounted to 250,000fcfa exclusive of head office expenses; the deductible charges amounts to
700,000fcfa exclusive of head office expenses; if the head office charges amounts to 280,000fcfa,
determine :
The amount of head office charges deductible.
The fiscal or taxable benefit
Solution:
Accounting profit 2,000,000fcfa
Reinstatements +250,000fcfa
Head office expenses +280,000fcfa
ITP = 2,530,000 fcfa
Deduction -700,000fcfa
Deductible HE -63,250 fcfa (2.5% of ITP)
Taxable benefit= 1,766,750fcfa

o Commissions and brokerages paid on goods purchased abroad (account 6321)

Limit of deduction: 5% of the value FOB

o Royalties for use of patents, brands, designs, software, trademarks and similar rights
(account 634)
They are deductible when their validity is in process.
They are not deductible when they are paid to companies located out of the CEMAC or ECCAS zone
and participating in the capital and management of the Cameroonian company. The royalties in such
cases are considered profit distributed and are subject to company tax and tax on income from securities.
If paid to companies out of the CEMAC or ECCAS zone, who are not participating in the capital and
management of the Cameroonian company, they will be eligible to a 2.5% deduction of the intermediary
taxable profit.
o Remuneration of external agents (account 637)
They are deductible if the payment is for effective work done.

5)-Taxes and Rates (account 64)

Only taxes considered professional are deductible.
The following are not deductible:
-Fiscal fines, penalties and fiscal condemnations for violation of tax laws, economic and fiscal
prescriptions;
-Company Tax and Personal Income Tax;

Page 13 of 23
 6)-Other charges (account 65)
The elements of account 65 are deductible when they fulfill the general conditions for deduction of
expenses. However, the following specific cases should be considered:
o Sitting allowance and other remuneration to administrators (account 6581)
They are deductible if effective work, such as attendance of board meetings, was done.
NB: attendance fees granted to someone who is just a member of the board of directors are to be
reinstated.
o Gifts, donations and sponsorships (accounts 6582 and 6583)
They are not deductible. However, they can be deductible to the limit of 0.5% of annual turnover before
Turnover Taxes when they are paid to research and development bodies; to organizations serving public
and general interest, that are either of philanthropic, educational, sporting, social or scientific nature
situated in Cameroon or within the CEMAC zone.
According to the 2010 finance law, charges of accounts 6582 and 6583 are fully deductible when
granted to:
-the State or its decentralized organs for the acquisition of antiretroviral drugs for the treatment of
HIV/AIDS;
-Recognized organizations with fiscal residence in Cameroon, for research and development in the
domain of agriculture, health and life stock breading.

The 2013 Finance Law further stipulates this:

Gifts and donations granted to clubs participating in the elites national competitions or organizers of
official sport competitions are deductible when they are justified and within the limit of 5% of the
annual turnover realized within the fiscal year.
o Operating provisions (account 659)
General conditions of deducibility:
The provision must be related to a deductible expense
The provisions must be probable and not only possible
The provisions must have a specific reason
It must be related to, and recorded during, the accounting period of calculation of company tax
The provisions must be recorded in the statistic and tax return
The deductibility of provisions can be summarized as follows:
Nature Of Provisions Deductibility Reasons
Provision for company tax No The company tax is nondeductible
Provision for doubtful customers Yes If probable
No If imaginary (especially for amount)
Provision for state debts No Not fiscally deductible
Provision for fire accidents No Incidental (no assurance for the occurrence of
fire)
Provision for renewal of vehicle No Investment
Provision for depreciation of securities yes If probable (current cost < purchase cost)
and for depreciation of stocks
Provision for sundry incidences No Incidental
Provision for works or sales guarantees No Incidental
Provision for constitution of retirement No Incidental
or lay off funds
Provision for life insurance No Incidental
Provision for paid leaves No Nondeductible for the amount to be paid as
leave allowance is known and not probable.
Reinstate the provision of current year and
deduct the provision of previous year.

Page 14 of 23
7) Personnel expenses, (Account – 66)
- They involve remunerations paid to workers or personnel of the enterprise (i.e. salaries, benefits,
allowances etc…). They are deductible if general conditions are met and if effective work was done.
o Employer’s social contribution (account 664): they are deductible if the receiving orga-
nization is in Cameroon.
However when it concerns employer’s contribution to a foreign old age pension fund for the benefit of
an expatriate, the deductibility is limited to 15% of the basic salary of the worker concerned.
o Paid leaves (account 6623): they are deductible for the period during which the em-
ployee effectively takes his/her leave.
o Flat allowance paid to personnel (account 663): they are deductible if:
- They are incurred fully, exclusively and necessarily in the performance of the duties of the enterprise;
- They are not exaggerated in relation to the post held by the beneficiary;
- They respect the non-cumulative principle (paying once for an item)
Sums paid to managerial or senior staff of a company on account of compensation (indemnities) of
employment or service fees and which do not correspond to a real expense of duties held or exercised
are non-deductible expenses. For example, the financial manager of HYSACAM receives milk allowance
meant for field workers against dust and odor they inhale. This type of allowance should be reinstated.
Remunerations or salaries of whatever nature paid to directors of sole proprietors, joint stock
companies are non-deductible.
8) Financial expenses (account – 67)
o Interest paid to financial institutions: interests on borrowings acquired for the need of the en-
terprise are deductible.
o Interest paid to shareholders and managers
Interest paid to shareholders for money put at the disposal of the company other than share capital are
deductible if the rate of interest does not exceed the central bank interest rate increased with 2 points
(2%). E.g. If the central bank rate is 10%, then maximum interest to be deducted should be 10% + 2% =
12%
NB : However, such deduction shall possi-ble with respect to partners who di-rectly or indirectly own at least
25% of the share capital or corporate voting rights only if:
- The sums of money made available by all the partners do not exceed one and a half times the amount of equity.
Otherwise, interest on the excess amount shall not be deduct-ible;
- There interest paid to the said part-ners does not exceed 25% of profit before corporate tax and before de-duc -
tion of the said interest and amortizations taken into account in determining such profit. Otherwise, the excess
amount of interest shall not be deductible.
o The following financial provisions are non-deductible.
Provision for taxes
Provision for fines and penalties
Provision for losses on exchange.
(9) Depreciation expenses: (account 68)
They are deductible when:
The depreciated asset futures in the balance sheet
They should concern the period.
They are calculated using the constant or straight line method as stipulated by the tax code.
NB:
- According to sect. 7 of the GTC, the threshold for expendable equipment and tools which should be
recorded under fixed assets is 400,000fcfa.
- Case of deferred depreciation (line 18, table 22 STR): when a company has made a loss, deductible
depreciations are reinstated to bring the negative net income to zero. This practice defers the
deductibility of the amount of depreciations to the coming years.
Page 15 of 23
(10) Provisions (account-69)
Generally, elements of account 69 are deductible when they respect the general conditions. The
following are not deductible:
Provisions for heavy repairs
Provisions for fines and penalties
Provisions for taxes
Provisions for losses on exchange
Provisions constituted to meet clearly specified losses or charges rendered probable by the course of events, pro-
vided that they are shown in the annual accounts and appear in the statement of provisions specified in Sec-tion
18 hereafter of the GTC.
Concerning credit establishments, with the exception of provisions for bad debts whose allocation is optional, the
deduction of provisions for bad debts and doubtful commitments shall be effected as follows:
- two years for bad debts and doubt-ful commitments whose risks are not covered either by collateral se-curities
or State guarantee. In this case, deduction may not exceed 50% of bad debts and commit-ments per annum;
- three years for bad debts and doubtful commitments whose risks are not covered by collateral secu-rities. In this
case, deductions may not exceed:
 25 % for the first year,
 50 % for the second year,
 25 % for the third year
The situation of these provisions must be definitely determined at the end of the third year of their constitution,
with the exception of those which concern bad debts and doubtful com-mitments brought before law courts.
In no event shall any provision be constituted for charges accountable, by their nature, in the year in which they
are incurred.

11) Other specific expenses

o Sumptuous expenses: these are expenses on non-business related issues. They are in principle
non-deductible.
o Theft, proper losses and others (account 658/81 and others):
Any loss or shortage of asset that is caused by any of the following situations is deductible if the
company has engaged against the act a legal and punitive procedure: embezzlement, theft, or bankruptcy
of a debtor.
o The case of previous losses:
According to Section 12 of the GTC, any loss sustained in a given year shall be considered as an expense
on the following year and deductible from profits made in the coming years. Should this profit be
inadequate for the deduction to be made in its entirety, the loss still outstanding shall be carried forward
to subsequent years up to the fourth year that follows the year of the loss. For structural projects, the
prescribed period is five years.

B. FISCAL ANALYSES OF REVENUE

Generally conditions for the taxation of revenue:
- The revenue should concern the fiscal year in question;
- The revenue should not be understated;
- The revenue should not relate to a tax allowance;
- The revenue should have been recorded or accounted for.

Specific conditions:
(1) Sales revenue (account 70)
They are taxable, net of commercial deductions.
(2) Operating subsidies (account 71); taxable if they concern the period.
(3) Self-constructed assets (account 72); they are taxable so far as the corresponding charges are
deductible.
(4) Variation of stocks of items and services produced (account 73); they are taxable in as much as
they are compensated for deductible charges.
(5) Other revenues (account 75)
Page 16 of 23
Taxable but for few exceptions
Specifications:
o Operating provision written back (account 759)
They are not taxable when they are related to non – deductible provisioned expanses. e.g. Written back
provisions on paid leave.
o Indemnity for life insurance on behalf of the company: They are taxable with deduction of in-
surances premium paid for life insurance on behalf of the company which were previously reins-
tated.
o Tax credits of deductible taxes are taxable.
E.g. Business License tax, Registration Duties. Any reimbursement of these taxes by the taxation
office is taxable. Tax credits are receipt of the year of notification. This should not be confused with
the tax credit related to the company tax recorded by the credit of account 899, which will escape
from taxation and will only come as a deduction of the company tax payable.
(5) Financial revenues (account 77): elements of account 77 are taxable when they fulfill the general
condition for taxation of revenues; however, they are some specific aspects to be treated:
o Dividends and interest on deposits (line 22, table 22 STR standard system):
The tax on dividends and interest on deposits is withheld at source by the person making the payment
and is subtracted from the annual company tax liability by the company receiving the dividends, so as to
obtain the net company tax payable. This provision does not apply to parent companies which receive
dividends from their subsidiary firms.
Practically, accountants record dividends and interests in one of the two manners stated below:
First alternative: they record only the payment of the dividend or interest at its net value by:
Dr. Cash account (by the net dividend or interest)
Cr. 77 Financial revenues (by the net dividend or interest)
In this case, during the fiscal analysis of revenues at the end of the fiscal year, the deducted tax on
dividend or interest is reinstated into the accounting net income so as to actually tax the gross dividend
or gross interest. After the calculation of the company tax on the basis of the taxable net income, the tax
is then deducted from the company tax since it was an advance on company tax.
Second alternative: they record both the declaration of the dividend or the interest at its gross value and
its payment at its net value as follows:
Dr. Cash account or 4711 sundry debtors (by the net dividend or interest)
Dr. 4478 state, taxes deducted at source (by the income tax to be deducted at source)
2q Cr. 77 Financial revenues (by the gross dividend or interest)
If this alternative is used during the fiscal year, the deducted tax on dividend or interest shall no longer
be reinstated to the accounting net income during the fiscal analysis of revenues at the end of the fiscal
year. However, after the calculation of the company tax on the basis of taxable net income, the tax is
then deducted from the company tax since it is an advance of the company tax.
NB- Financial provisions written back related to non-deductible provisioned expenses are not taxed.
- Elements of account 78 are taxable.
(6) Provisions written back (account 79): they are not taxable when they are related to a non-deductible
provisioned expense.
(7) Other specific aspects of revenues
o Gains on disposal to be reinvested: (line 20, table 22 STR, standard system) previously they
were not taxed but this advantage regime was canceled by the 2006 finance law; thus henceforth
they are taxed and by implication line 20, table 22ST, standard system does no longer apply.
o Net dividends from subsidiary firms (line 21, table 22 STR, standard system)
Determination of the taxable profit of the parent company
It should be noted that the net dividend received has already been taxed on the account of:
Company tax at the rate of 33% at the level of the subsidiary firm;
Tax on income from securities deducted at source at the rate of 16.5%.
Thus the parent company receives the income net of the deduction of the above taxes.

Page 17 of 23
In order to avoid double taxation at the level of the parent company, the net proceeds received from the
subsidiary firm should be excluded from the taxable profit.
The parent company incurs some expenses in collecting the dividends from the subsidiary firm. These
expenses are non-deductible and therefore should be reinstated to the profit. According to section 13 of
the GTC, the expenses are evaluated at a flat rate of 10% of the net amount of the dividends.
NB: the shareholding proportion of the parent company in the subsidiary company should not be less
than 25% and the parent and subsidiary company should have their registered offices in an ECCAS
state.
Practically, the fiscal treatment of these proceeds is as follows:
Step 1: determine the amount of tax on income from securities deducted at source and reinstate, if the
accountant recorded just the net dividend.
Step 2: deduct from the profit the net proceeds received after having removed 10% as expenses
calculated on the net proceeds (line 21, table 22 STR)
NB: That is to say; net dividends less 10% (83.5% -10%) is not taxed when parent companies are
concerned.
Illustration:
The profit before tax of NITO Plc is 7800000fcfa with a net dividend of 350700fcfa received from the
subsidiary firm situated in the CEMAC zone in which NITO Plc has a shareholding of 32%.
Determine the taxable profit and the company tax of NITO Plc.
Solution:
Net profit before tax…………………………………...7800000
Reinstatements:
Tax on dividends: (350700 / 0.835) x 0.165……..69300
Deductions:
Recovery expenses: 350700 x 10% =35070
Exoneration: 350700-35070 = 315630………..(315630)
Taxable profit ………………………………………….7553670
Company tax payable 7553670 x 33%..........................2,492,711
NB: the tax deducted at source in this case is not an advance of the company tax. Thus the provision
of section 17 of the GTC is not applicable when it concerns parent companies

Determination of the deduction at source carried out by the parent company on dividends
received from subsidiary firms.
According to section 39 of the GTC, if the parent company received dividends from its subsidiary for
the year 20X0 and these dividends are distributed by the parent company to its shareholders by the end
of this same year 20X0, the tax borne by the dividends (before being received by the parent company)
shall be deducted from the amount of the tax owed by the parent company.
e.g. if ND = 350700, then at the level of the parent company it is taxed by 33%.
So net dividend to be shared by parent company = 350700 – 33% of 350700. = 234969
PIT on shared dividend = 16.5% x 234,969 = 38,769.9
But the GD was taxed at source by the subsidiary; i.e. 420,000 x 16.5% = 69,300
- If dividend is shared in the same year received, then the amount to be distributed is:
Amount of dividend taxed at 33% = (420,000 – 90% of 350,700) = 104,370
Company tax = 104,370 x 33% = 34,442
Dividend distributable = 350700 – 34,442 -0
- If paid next year,

Page 18 of 23
 APPLICATION EXERCISES
EXERCISE 1
The KETCH joint stock company is a public work enterprise of the Cameroonian nationality created
since 2010 in Douala with a capital of 800 000 000 FCFA totally liberated and divided as follows:
MKEUTCHA JEAN……………………………………………………….22%
GUIEFEBOP………………………………………………………………20%
NGNONTSOKO JORDAN ………………………………………………15%
KUEBOVE…………………………………………………………………17%
ASQUINI ENCORAD Italy……………………………………………….18%
SOCIETE NATIONALE D’INVESTISSEMENT (SNI) ………………..10%
Its result account established on the 31st December 2017 reveal the following:
-Result of ordinary activities (ROA)…………………… 250 000 000 FCFA (C/B)
-Result of off ordinary activities (ROOA) ………………20 000 000 FCFA( D/B)
During the fiscal control after the deposit of the STR on the 31/12/2017, the following information was
extracted from the management accounts.
1-Account 61 -Transport: 6 000 000 FCFA
Of which 1 500 000 FCFA was reimbursement of displacement expenses to the technical director for the
prospection of the Central African market under construction.
2-Account 62-External services
Renting of technical equipments:
-To ASQUINI ENCORAD Italy against the monthly rents of 5 000 000 FCFA.
-To Y-CAM CAMEROUN against trimestrial rent of 9 000 000 FCFA.
GUIFEBOP receive from the company 70 000 FCFA and 150 000 FCFA for monthly rents on a
building and a truck respectively.
3-Account 63-Other external services: Honoraries for technical studies to ASQUINI ENCORAD Italy
60 000 000 FCFA.
-The company use to buy and sell without transformation, some products bought abroad, of
which the situation (stock structure) for the 2017 financial year is as follows:
-Opening stock: 5 616 000 FCFA
-Closing stock: 1 296 000 FCFA
-Purchases of the year 8 200 000 FCFA
The company has paid 656 000 FCFA abroad for brokerages on purchases.
4-Account 65 other expenses:
-Gift and donation: -To the Bafut charitable house 2 725 000
-To FECAFOOT Yaoundé main office 31 500 000 FCFA
- 5-Account 66- personnel expenses:
-The technical director of the KETCH joint stock company receive a forfaitery allocation (displacement
indemnity) of 250 000 FCFA per month for his multiple displacements.
6-Account 67-Financial and assimilated expenses.
-The KETCH company received:
-30 000 000 FCFA from BICEC since the 1st of February 2017
-Some shareholders have deposited money in the company’s bank account:
Name of the shareholder Sum deposited (in Date of deposit % of shares held
FCFA)
GUIEFEBOP 80 000 000 01/07/2016 18
NGNONTSOKO 60 000 000 02/08/2016 15
JORDAN
KUEBOVE 30 000 000 01/07/2017 04
These funds have been remunerated at the rate of 13% per year for GUIEFEBOP and NGNONTSOKO
and at the rate of 12% for KUEBOVE. The BEAC rate passed from 9,5% to 10% on the 01/07/20117.

Page 19 of 23
7-Account 68 -Depreciation expenses: The first three annuities of depreciation of a transport material
bought for 5 000 000 FCFA and depreciated by the degressive depreciation are 500 000 FCFA,
1 800 000 FCFA and 1 080 000 FCFA respectively as of the 31/12/2017.
8-Account 707-Accessory incomes.
-The joint stock company KETCH has received and recorded the gross rents on a part of its headquarter
building that it rents to the joint stock company DAFIC at 500 000 FCFA per month.
9-Account 77-Financial and assimilated revenues.
The joint stock company KETCH has recorded dividends amounting to 30 000 000 FCFA from the Ltd
partnership “TRAVAUX Modernes “of Douala where it detents 20% of the capital. The dividends
received by bank cheque amounted to 25 050 000 FCFA.
-The joint stock company KETGH equally received a net dividend of 4 926 500 FCFA for inter-
company investments in BRASSERIES du CAMEROUN where she detents some shares.
10-Account 81 and 82
-The disposal of a tractor during the financial year produced an increase in value of 10 000 000 FCFA.
11- Fiscally exonerated revenues 2 540 000 FCFA
12-Deficit of 2016 4 780 550 FCFA

WORK REQUIRED
1-Calculate the fiscal profit of the joint stock company KETCH as of the 31/12/2017
2-Calculate the company tax, knowing that:
-The turnover tax free realized in 2017 was 500 000 000 FCFA and that the joint stock company
KETCH spontaneously paid all the monthly tax advances on the company tax.
3- Determine the net profit to be shared.

Page 20 of 23
APPENDIX 1. TABLE CF1 of the STR for the determination of the taxable income.
Business name:
Address:
Identification number: Financial year ending 31-12-20 _ _ Duration (in month):__
DETERMINATION OF FISCAL PROFIT OR LOSS
Line AMOUNTS
BALANCE OF NET PROFIT NET PROFIT BEFORE TAX 01
BEFORE COMPANY TAX NET LOSS BEFORE TAX 02
REINSTATED FOR THE COMPUTATION

Non-deductible Depreciation Expenses 03

OF THE FISCAL PROFIT OR LOSS
PARTLY OR NON-DEDUCTIBLE
EXPENSES OR LOSSES TO BE

Depreciation expenses recorded but deferred because of loss 04

Non-deductible Provisions 05
Non-deductible Interest on shareholders current accounts 06
Head office expenses 07
Non-deductible Taxes (other than income tax) 08
Non-deductible Fines and penalties 09
Non-deductible Gifts and donations: 10
Taxation at source of income from securities: 11
Sundry 1: 12
Sundry 2: 13
Sundry 3: 14
REINSTATEMENTS : TOATAL lines 3 to 14 15
Intermediary POSITIVE TOTAL : line 15 + line 1 or line 15 – line 2 16
Intermediary NEGATIVE TOTAL :Line 2 – line 15 17
Depreciation formerly deferred & allocated for the period 18
Previously taxed or finally exonerated provisions reinstated. 19
EXPENSES OR LOSSES,
REVENUE OR PROFITS
FISCALLY DEDUCTIBLE

Non-taxable part of gains on disposal of fixed assets 20

Subsidiary net income (after deduction of expenses & loss). 21
Other deductible incomes from securities 22
Deductible head office expenses 23
Sundry1________________________________________ 24
Sundry2________________________________________ 25
Sundry 3_______________________________________ 26
DEDUCTIONS: TOTAL line 18 - 26 27

FISCAL PROFIT OR FISCAL PROFIT FOR THE PERIOD :line 16 – line 27 28

LOSS FISCAL LOSS FOR THE PERIOD : Line27 – Line 16 or
line 18 + line 27 29

Bases of
HEADING line assessment Rate Tax principal
SITUATION OF THE FIRM

Fixed minimum tax Min. proportion to turnover 30 1%

TOWARDS THE FIXED

Company tax 31 35%

MMINIMUM TAX

Tax based on ICP $ NCP 32 22%

fiscal Profit for the Sole proprietor 33
period Profit from craftworks 34 11%
(line 30) income tax 35
36
Proportional tax Profit from agriculture 37
Proportional tax 38 15%
Total lines 32 to 38 39

Page 21 of 23
APPENDIX 2. TABLE CF1A of the STR for the determination of the Income Tax Liability
Business name:
Address:
Identification number: Financial year ending 31-12-20_ _ Duration (in months):___
DETERMINATION OF INCOME TAX
HEADINGS Line AMOUNTS
TRANSFER OF FISCAL PROFIT OF THE PERIOD 01

Deductions on account of reinvestments made during the past 3 periods

Year N-3 Year N-2 Year N-1
DETERMINATION OF PROFIT AFTER TAX

HEADINGS
Authorised reinvestment b/f 02
Deductible reinvestment = 50% x line 2 03
Total line 4
Reinvestment actually deducted 04
Reinvestment to be carried f/d 2 x (line7- line8) 05
DEDUCTIONS FROM REINVESTMENTS OF THE PERIOD
Reinvestments of the period authorized 06
Deductible Reinvestment = 50% x line 6 07 Total liine 8
Reinvestment deducted 08
(not exceeding 1/2 of fiscal profit of the period)
Reinvestment to be carried f/d = 2 x (line 7- line 8) 09
Allocation of losses brought forward
HEADINGS N-4 N-3 N-2 N-1

Losses brought f/d 10 Total line 11

Losses allocated for
the period 11
Losses to be c/f 12
FINAL FISCAL PROFIT(Total line 1,4,8 & 11) 13
CALCULATION OF TAX ON FINAL FISCAL PROFIT
HEADINGS Assessment basis Rate Line Amounts
Company tax 14
PIT not deducted at source 15
Deduction of PIT deducted at source 16
Other deductions 17
Net tax owed (line 14 + line 15) – (line 16 + line 17) 18
Additional council tax 19
TOTAL TAX (line 18 + line 19) 20
Taxes in advance (b/f line 13, Table 25 Col. 6) 21
Net payable 22
Tax credit 23
Account 89 : Income tax
Headings Amounts
891 Income tax for the period 24
892 Income tax arrears for prior periods 25
895 Fixed minimum tax 26
899 Tax credit and cancellation of tax on prior profits 27
Total 28

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APPENDIX 3. TABLE CF1 Ter of the STR for the Determination of the Min. Income Tax
TABLE OF DETERMINATION OF FISCAL MINIMUM TAX
HEADINGS Amounts
FISCAL MINIMUM TAX BROUGHT FORWARD 01
TAX REDUCTION ON ACCOUNT OF PREVIOUS REINVESTMENTS
PERIODS Reinvestments Base Actual base of the tax Reinvestments which
authorised and 50% X column reduction can be carried forward
brought forward 1 2 x col. 2 – col. 3
Year N-3 and Previous 02
Year N-2 03
Year N-1 04
TOTAL 05
x (tax RATE) 06
TAX REDUCTION ON ACCOUNT OF REINVESTMENTS FOR THE FINANCIAL YEAR
Reinvestments authorised for the period 07
Base of the tax reduction (50% x line 7) 08
Actual base of the tax reduction 09 x ((tax rate)
Reinvestments which can be carried forward 2 x (line 8 - line 9) 10

HEADINGS
Proportional tax on income from securities not taxed at source 11 15% +
Progressive tax payable by the company and other artificial persons on concealed distributed revenues 12 60% +
Capital not taxed at sourced 13 25%

Deductions PITIS (Proportional income tax on income from securities) 14 -

Others 15 -
COMPUTATION OF THE FISCAL MINIMUM
Base Rates Amounts
Fiscal Minimum Tax 16
PITIS not retained at source 17
Deduction of PITIS retained at source 18
Other deductions 19
Net tax payable (line 16 + line 17) - (line 18 + line 19) 20
Additional Council Tax 21
TOTAL OF THE TAX (line 20 + line 21) 22
Advances Paid (transfer line 13 table 25 col. 6) 23
Net Payable (line 22 – line 23) 24
Tax Credit (line 23 – line 22) 25

SITUATION OF LOSSES BROUGHT FORWARD FOR BUSINESSES OTHER THAN THOSE ASSESSED ON ACTUAL PROFIT
FISCAL PROFI F THE PERIOD BROUGHT FORWARD 26
FISCAL LOSS OF THE PERIOD BROUGHT FORWARD 27
Imputations of brought forward losses
Headings N-4 N-3 N-2 N-1
Losses brought forward 28
Losses imputed 29
Losses which can be carried forward 30
FINAL FISCAL PROFIT 31
FINAL FISCAL LOSS 32

Account 89 : Tax on net income

Headings Amounts
891 Taxes on the net profit of the period 33
892 Tax arrears n previous net profits 34
895 Fiscal Minimum Tax 35
899 Tax relief and reductions on previous net incomes 36
TOTAL 37

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