Taxes: Gov’t reinstates a tax suspended for 20 years
By Eratus Ndueh
The Cameroonian government has reintroduced the Personal Income Tax (IRPP), a tax which was suspended two decades ago.
According to the General Directorate of Taxes, this measure specifically concerns individuals benefiting from various types of income such as salaries, wages, pensions, life annuities, as well as financial and property income.
The Minister of Finance , Louis Paul Motaze, announced in a press release that the taxpayers concerned will henceforth submit an annual summary declaration before June 30 of each year. This means that they will have to contribute to tax collection by paying IRPP, a tax based on the gains made by taxable individuals.
For instance, landlords will have to declare their rental costs, shareholders their dividends and private sector employees their monthly remuneration. The state also aims to capture some of the revenue that previously escaped it, by taxing traders, farmers and other service providers.
Although this measure is included in the 2024 finance law, it is not new. The IRPP has existed in Cameroon since 1973, but was reformed in 2004 to make it more modern and simple. However, by reactivating the IRPP for the taxpayers concerned, Cameroon is introducing a fifth tax regime, the regime for non-professional taxpayers.
The General Directorate of Taxes emphasizes that the tax collection objective for 2024 is CFA 3,100 billion. The implementation of the IRPP on non-professional taxpayers is a major challenge, especially in a context of increasing inflation. To meet this challenge, awareness sessions were organized to inform taxpayers of the declaration and payment methods.
This reinstatement of the IRPP comes after the suspension of another controversial tax on the withholding under the IRPP on benefits in kind, following criticism from unions and employers on its impact on employees.
