Cameroon - Finance Law 2024 General Tax Code Amendments Effective 1 January 2024

Cameroon - Finance Law 2024 General Tax Code Amendments Effective 1 January 2024

The Finance Law of the Republic of Cameroon for the 2024 financial year was enacted on 19 December 2023. Law no 2023/019 amended the General Tax Code effective 1 January 2024.

The following tax measures affects payroll in Cameroon for the 2024 tax year: 

Amendments to Section 33 the General Tax Code:
The list of benefits in kind has been extended to take into account the full monetary compensation representing benefits in kind for all professional jobs or functions.
The following benefits in kind added, the estimate should be made according to the following rates, applied to the gross taxable salary:
  1. Telephone 5%
  2. Fuel 10%
  3. Guarding 5%
  4. Internet 5%
Section 33 confirms that any benefit in kind not listed in the article are estimated at their actual cost. Any cash allowance representing benefits in kind shall be included for its actual amount, unless specifically exempted.  
Note: An employee can have more than one servant, vehicle, guard and/or telephone provided. Each individual benefit is calculated separately. 

Amendments to Section 34 the General Tax Code:
The capping of the flat-rate allowance of 30% for deductible professional expenses for the determination of the taxable base for personal income tax. 

Allowable deductions: Section 29 and 34 of General Tax Code
The net amount of taxable income is determined by deducting from the gross amount:
  1. a standard reduction at the rate of 30% of gross taxable amount (Section 34)
  2. employee contribution to the National Fund of Social Security (CNPS) (Section 34)
  3. fixed abatement of FCFA 500,000 (Section 29)
Section 34 amended to cap the standard reduction of 30%. This allowance grants significant tax advantage to high-income employees. To remedy the situation, the flat rate allowance has been capped at an amount of FCFA 4,800,000 per year. This value should be pro-rated in accordance with the period employed in the tax year if the employee was not employed the full tax year. The measure would have no impact on low incomes, as monthly salaries of less than FCFA 1,300,000 will not be affected by the limitation.