Cameroon | When and How does the Graduate under 35 tax status apply to employees

Cameroon | When and How does the Graduate under 35 tax status apply to employees

Cameroon offers a Tax Incentivized program supported by the General Tax code of 2023 for employers to appoint individuals with a Graduate Degree at the age of 35 years or younger.

The exemption is granted to firms falling under the actual earnings tax system or members of an Approved Management Centre.

This measure shall apply for 3 years from the date of signature of the employment contract or admission to a pre-employment internship and 5 years for recruitments made in economically damaged areas.

To benefit from the advantages provided for in Section 105 above, firms shall submit to the tax authority, as a tax return, the list of the persons recruited, together with valid supporting documents.

the age is factored up from date of signing the contract. Therefore, it looks at the employee's age on the date of employment. The exemption period ends on the date of the 3rd anniversary of the date of the employee's recruitment regardless of the employee's age. The exemption will be valid even if the employee is above 35 provided that the contract was signed whilst he was within the 35-year limit.

To cater to the criteria, the employee record can be attached to the Graduate under 35 tax status.

Navigate to Employee > Basic Information > Tax Profile.

The tax status can be selected from the drop down menu options.

      

Once applied the following charges will be exempt:

  • Personal Income Tax (employee charges)
  • The contribution to Crédit Foncier (employee and company charges)
  • Contribution to the National Fund for Employment (company charges)
  • The Audiovisual Fee (employee and company charges )
  • The development tax (company charge).