Company Income Tax Overview

False (B)

25%

<p>information and communication technologies</p> Signup and view all the answers

<p>Companies whose ordinary shares are listed on the CEMAC stock exchange (B)</p> Signup and view all the answers

<p>advance company tax on the monthly turnover before tax</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>20% = Public establishments dealing with the promotion of local building materials 25% = Companies whose annual turnovers before tax amount to at most three billion Frs cfa 15% = Research start-up companies in the domain of information and communication technologies 30% = The principal rate</p> Signup and view all the answers

<p>0.165 (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Table T9</p> Signup and view all the answers

<p>1000</p> Signup and view all the answers

<p>Column 1 = Prepaid tax on purchases Column 2 = Principal of the advanced tax on turnover Column 3 = Council tax amount of the advanced tax on turnover Column 4 = Withholdings on turnover suffered at source</p> Signup and view all the answers

<p>2% (D)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>15th of the following month</p> Signup and view all the answers

<p>1.5%</p> Signup and view all the answers

<p>2% of monthly turnover (D)</p> Signup and view all the answers

<p>To reduce the final tax liability. (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>2% = Taxpayers under actual earnings system 5% = Taxpayers under simplified taxation system 14% = Companies under regulated margin sectors (based on gross margin) 1.5% = Companies with shares listed on CEMAC stock exchange</p> Signup and view all the answers

<p>880,000</p> Signup and view all the answers

<p>2.2</p> Signup and view all the answers

<p>Dr: 4492 - State, advances and payments on account for taxes Cr: Class 5 account (A)</p> Signup and view all the answers

<p>Deduction at source = Tax withheld by the purchaser. Tax exclusive = Price that does not include taxes. Advance payment = Tax paid throughout the tax year. Net Company Tax = Final tax liability</p> Signup and view all the answers

<p>UBA Bank Cheque (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>39,120,000</p> Signup and view all the answers

<p>The higher amount between the tax based on the fiscal profit and the fiscal minimum (C)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Company tax due= Annual tax liability (tax on fiscal profit) + Tax on income not deducted at source - Advances and payments on account for taxes - Tax abatement and relief</p> Signup and view all the answers

<p>minimum</p> Signup and view all the answers

<p>27.5% (D)</p> Signup and view all the answers

<p>10% (B)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>Turnover = Total revenue from sales before taxes. Fiscal Minimum = The lowest amount of tax a company has to pay, regardless of profit. Net Profit = The difference between revenues and expenses. Tax Abatement = Reduction in tax liability.</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>March 15th of the next fiscal period</p> Signup and view all the answers

<p>The 19th of each month.</p> Signup and view all the answers

<p>4</p> Signup and view all the answers

<p>10% = Taxpayers of the global tax system on their importation transactions. 5% = Value of transactions carried out by taxpayers of the simplified and global taxation systems 2% = Transactions carried out for registered businesses under the actual system. 0.5% = Purchase transactions made by operators of fuel filling stations on petroleum products</p> Signup and view all the answers

<p>Purchase transactions made by the state (A)</p> Signup and view all the answers

<p>False (B)</p> Signup and view all the answers

<p>The custom service</p> Signup and view all the answers

A tax paid in advance on monthly turnover, calculated at a rate of 2% for companies using the actual earnings system, 5% for the simplified taxation system, and a higher rate for unregistered companies.

A tax paid in advance on monthly turnover, calculated at a rate of 5% for companies using the simplified taxation system.

A tax paid in advance on monthly turnover, calculated at a rate of 10% for companies not registered with the filling system of any given tax centre.

A tax paid in advance on monthly turnover, calculated at a rate of 20% for forestry companies not registered with the filling system and lacking exploitation authorization.

A tax paid in advance on monthly turnover, calculated at a rate of 14% of the gross margin for companies classified under the regulated margin sectors. These companies can opt for the common law system and pay 2% of their monthly turnover.

A tax paid in advance on monthly turnover, calculated at a reduced rate of 1.5% for companies whose ordinary shares are listed on the CEMAC stock exchange.

An additional tax rate of 10% added to the advance company tax based on turnover. It applies to all companies subject to the advance company tax.

Tax deducted directly from payments made by the State, regional and local authorities, public administrative establishments, and certain major enterprises for companies registered with the filling system.

The primary rate of company tax in the GTC is 30%. This rate, however, is subject to an additional council tax of 10%. Therefore, the final tax rate after the council tax addition is 33% (30% +10% of 30%).

It's a 10% tax applied on the initial 30% company tax rate to arrive at the final rate of 33%.

Specific company tax rates designed to promote certain economic activities. These rates aim to incentivize companies to engage in areas deemed beneficial by the government.

Companies whose annual turnover is under three billion Frs cfa can enjoy a reduced company tax rate of 25%.

Companies listed on the CEMAC stock exchange and those involved in public share issues through this market receive a reduced company tax rate of 25%. This incentivizes companies to participate in the stock market.

Research start-up companies in the information and communication technology sector enjoy a company tax rate of 15% to encourage digital economy development.

Public establishments promoting the use of local building materials benefit from a reduced company tax rate of 20%.

Payments made by companies during the fiscal year to reduce the burden of paying a large lump sum at the end of the year. These advances contribute to the overall annual tax liability.

A tax paid in advance on purchases of goods by businesses, covering purchases from various entities including industrialists, importers, and wholesalers.

The commercial net or custom value of the purchased items forms the basis for calculating the prepaid tax on purchases.

Businesses assessed under the global tax system must also pay prepaid tax on their imports, similar to other businesses.

The tax rate for prepaid tax on purchases varies depending on factors like the taxpayer's registration status and the type of transaction.

Companies operating under an actual tax system typically pay a lower prepaid tax rate compared to those in the global or simplified systems.

The supplier or customs service collects the prepaid tax, and it is paid to the state treasury by the 19th of each month.

The accounting entry for recording the prepaid tax payment involves debiting the state account and crediting the relevant company account.

The advance company tax (or prepaid tax) on purchases is a fiscal obligation for all taxpayers in Cameroon.

The deduction of tax on income from securities at source by a bank, calculated as 0.165 times the income, which is then subtracted from the company's overall tax liability.

A table in the Statistical and Tax Returns for the Minimum Cash System or STR (Standard system) used to track all advance payments of company tax during a fiscal year.

The annual tax liability determined based on the company's taxable profit after rounding down to the nearest 1000 CFAF and multiplying by the tax rate.

A specific minimum tax amount set by the government that a company must pay, regardless of its taxable profit.

The process of determining the annual tax liability for a company by considering both the taxable profit and the fiscal minimum tax.

A tax levied on the turnover of a company, calculated as a percentage of the company's sales revenue.

This is the amount of company tax that a company needs to pay on its turnover. It's calculated as a percentage of the company's sales revenue.

This deduction is taken at the source of income, meaning it's deducted directly from the payment made to the company for goods or services.

The percentage rate applied to a company's turnover to calculate its advance company tax liability.

The actual amount of tax paid by a company on its turnover in advance. This is calculated by multiplying the company's turnover by the applicable company tax rate.

This is a journal entry that records the deduction of company tax at source. This is done when a company sells goods to a public institution or certain major enterprises.

This refers to the public institutions and certain major enterprises that are legally obliged to deduct company tax at source before settling their outstanding payments to suppliers.

This is the adjustment entry made by a company to determine the net company tax payable. This entry involves debiting the 'State, Tax on Net Profit' account and crediting the 'Advances and Payments on Account for Taxes' account.

The difference between the annual tax calculated based on fiscal profit, income not deducted at source, and the sum of advances and payments on account for taxes, tax abatement, and relief.

When the tax liability is determined by the higher of the tax based on fiscal profit and the fiscal minimum tax.

A tax calculated at 27.5% of the company's taxable profit.

The difference between revenues and expenses before tax.

An accounting entry used to reflect the net profit before tax.

The accounting process for company tax, involving entries for advances, payments on account, and the final tax liability.

A tax based on the net profit, applied when the net profit tax exceeds the fiscal minimum tax.