Find Accountancy, Audit and Tax expertise in Cameroon
- Overview
- Profession
- Tax
Overview
Numerous small and medium-sized accountancy and audit outfits can be found in Douala and Yaoundé in Cameroon. All of the ‘Big Four’ professional services firms operate in the country with varying levels of service. In terms of accounting standards, all non-financial institution firms in Cameroon must comply with the Organization for the Harmonization of African Business Law (OHADA) accounting framework. Financial statements must be filed annually in accordance with the OHADA treaty. Additionally, all public limited companies are legally obliged to have their annual accounts audited by a statutory auditor. There is discussion of adoption of International Financial Reporting Standards (IFRS) only for consolidated financial statements of listed companies from 2014. Furthermore, from 2018 it is intended that there will be a partial convergence of local GAAP (generally accepted accounting principles) and IFRS for both listed and non listed companies. In the World Economic Forum’s Global Competitiveness Report (2012-13) Cameroon ranked 124th in the world (out of 144 countries) for the strength of its auditing and reporting standards, with a value of 3.7 out of 7, below the world mean of 4.6. In the 2011 World Bank’s Ease of Doing Business Index it placed 147th in the world (out of 183 countries) for resolving insolvency, just below Gabon in 144th position.
Profession
The Institute of Chartered Accountants of Cameroon (ONECCA) is the leading sector body. It is one of the ten member organisations of the Association of Accountancy Bodies in West Africa (ABWA), a regional branch of the International Federation of Accountants (IFAC). The British Council administers professional exams on behalf of Association of Chartered Certified Accountants (ACCA) twice a year in the country. The Institute of Management and Financial Accounting is the central provider of these professional accountancy qualifications, available to both French and English speaking students.
Tax
Income taxes are progressively charged at 10-35%, with a 10% surcharge added to the final tax amount. All companies are subject to corporate tax, as well as branches of foreign companies. Most partnerships do not pay corporation tax. Rather, their profit is split and taxed on the individual. Corporate tax is normally 38.5% – a corporate rate of 35% plus a 10% surcharge. This rate is reduced to 30% for companies during their first 3 years of listing on the national stock exchange of Cameroon. Capital gains are treated as normal business income. The rate of standard Value Added Tax (la Taxe sur la Valeur Ajoutee – TVA) is 19.25% – 17.5% basic tax rate plus 10% surcharge – although exports are zero VAT rated. In the 2011 Ease of Doing Business Report Cameroon found itself 171st in the world for paying taxes, a low position that nevertheless saw it placed above neighbouring Central African Republic (177th), Chad (180th) and the Republic of Congo (182nd). In the Global Competitiveness Report it placed 108th in the world in relation to its total tax rate, with a value of 49.1%, significantly below, for example, Nigeria’s value of 32.7% (46th).
| Accountancy, Audit and Tax organisations in Cameroon | |
|---|---|
| African Investment Corporation Inc |
|
| Cabinet ISIS |
|
| Institute of the Chartered Accountants of Cameroon |
|
| Okalla Ahanda & Associates |
|
| Organization for the Harmonization of African Business Law (OHADA), The |
|
