Republic of Cameroon

Cameroon’s income tax structure is governed by the General Tax Code and primarily affects employers through the obligation to withhold personal income tax from employee salaries under the Pay As You Earn (PAYE) system. The country operates a progressive income tax system, taxing individuals at increasing rates after accounting for allowable deductions and social security contributions. Taxable income includes earnings from salaries, overtime, bonuses, allowances, benefits in kind, gratuities and severance pay. Residents are taxed on their worldwide income, while non-residents are taxed only on income earned in Cameroon. Employers are required to withhold income tax through the PAYE system and remit it to the Directorate General of Taxation (DGT), which operates under the Ministry of Finance. In addition to income tax, employees may also be subject to other levies such as the National Housing Fund (Crédit Foncier du Cameroun – CFC/CFH, commonly referred to as NHF in English) contribution and a flat-rate council tax.

Payroll taxes include income tax withholdings, social security contributions and levies that both employers and employees are required to comply with. Employers withhold PAYE income tax from salaries at progressive rates ranging from 11% to 38.5% depending on income level, with a 10% additional surcharge (CAC) applied to the calculated tax. Employers must contribute to the Cameroon Housing Fund (CHF / Crédit Foncier du Cameroun) at a rate of 1.5% of the employee’s gross salary, while employees are required to contribute 1% of their gross salary to the same fund. Mandatory social security contributions, managed by the National Social Insurance Fund (CNPS), are shared between employers and employees and calculated based on the employee’s gross salary, subject to a contribution ceiling. Employees contribute 4.2% for pension and disability insurance and employers are responsible for the larger share, contributing 4.2% for pension and disability insurance, 7% for family allowances and 1.75% to 5% for work-related accident and occupational disease insurance, depending on the level of risk associated with the business activity. Employers must also contribute 1% of the employee’s gross salary to the National Employment Fund (NEF). Employees earning more than XAF 500,000 per month are also subject to a flat-rate council tax of XAF 2,520 per month, which employers must withhold and remit to the relevant authorities.

Employers are required to report and remit all statutory payroll contributions and taxes monthly, typically by the 15th of the following month. This includes personal income tax withheld through the PAYE system, as well as employer and employee contributions to the CNPS, the NEF and the NHF. All filings and payments must be made to the relevant authorities, primarily the DGT and the CNPS, using prescribed electronic or manual channels. Cameroon also imposes differentiated annual DIPE (Déclaration des Informations sur les Personnes Employées) deadlines depending on employer type and taxpayer category. The DIPE provides a detailed recap of employment income and deductions made during the year for each employee. It must be filed by 30 September for private sector employees under large and medium-sized tax centres and 31 October for all other individual taxpayers (private-sector employees at small/local tax centres, non-professionals). The Council Tax, where applicable, must also be withheld from qualifying employees and submitted along with monthly payroll declarations.

Payroll providers and employers must maintain accurate and comprehensive documentation to ensure compliance with local labour and tax laws. This includes keeping detailed records of employee contracts, salary structures, payslips, tax withholdings, social security contributions, any benefits or allowances provided and proof of monthly and annual filings such as PAYE declarations and the DIPE. Employers must also maintain a business profile with valid identification numbers for tax and social security filings, and ensure that policies on leave, attendance and work location are clearly defined and compliant with local regulations. Employers must retain these records for a minimum of ten years, as stipulated by the General Tax Code and the Labour Code. Non-compliance such as late submissions, underreporting or failure to pay can lead to penalties including fines, interest on unpaid amounts and potential legal action. For example, late payment of social security contributions may incur a penalty of 1.5% per month of the outstanding amount.