Direct tax Flashcards
1
Q
What are the major types of direct tax?
A
- Corporate/Company tax
- Personal income tax
2
Q
What is corporate/company tax?
A
It is a tax that is provided for by Article 2 of the Cameroonian general tax code, It is a tax imposed on corporations and other corporate entities. The rate of this tax is 35% of the net profit earned by a cooperation or company within 12 months.
3
Q
What corporations are exempt from paying company/corporate tax?
A
- Corporations earning less than 1000frs in annual profit
- Local or Regional Council
- Non profit organisations
- Charity organizations
- Clubs
- Cooperative societies dealing in agricultural and livestock products.
4
Q
What is personal income tax?
A
Article 24 of the Cameroonian general tax code provides for the taxation of the net income of all wage earners resident in Cameroon. This tax is known as the personal income tax.
5
Q
Who is exempted from paying personal income tax?
A
- Wage earners earning less that 62,000frs a month
- Diplomatic staff
6
Q
What are the rates for personal income tax?
A
- 63 to 200k -> 10%
- 201k to 3M -> 15%
- 3M to 5M -> 25%
- 4M+ -> 35%
