Why Businesses in Cameroon Must File Statistical & Tax Returns — And What It Really Means for You

Every year, around this time, entrepreneurs in Cameroon start feeling that familiar pressure:
“Financial statements… end-of-year declarations… tax filing… where do I even start?”

If you’re asking yourself the same questions, you’re not alone. But understanding why the government requires these declarations — and how it affects your business directly — makes the entire process easier to manage.

Let’s break it down in simple terms.

1. Why the Government Needs Your Financial Statements

Think of it this way: when you register a business in Cameroon, you’re not running it alone. Whether you like it or not, the government becomes a kind of “silent partner.”

Not a partner who contributes capital or helps you manage the business — no.
A partner whose job is to take a portion of your profit in the form of taxes.

Read Also: How to Avoid Penalties During End-of-Year Tax Filing in Cameroon

For small businesses, here’s what it looks like:

• Businesses with an annual turnover between 10,000,000 FCFA and 50,000,000 FCFA fall under the Comprehensive Tax Regime (formerly Simplified Regime).
• Under this regime, the government collects 25% of your taxable profit.
• Out of that 25%, the local council collects 10% — this is the Additional Council Tax (CAC).

In simple terms:
If you’re in this turnover bracket, 27.5% of your taxable profit belongs to the state and council combined.

Now you understand why they need your end-of-year report.
Without your financial statements, they can’t determine their share — the part of your business they are legally entitled to.

2. The 2025 Finance Law: What Changed?

The new 2025 Finance Law merged the old Simplified Tax Regime and the Flat Rate Regime into one structure called the Comprehensive Tax Regime.

It now has 10 classes, with:

• Class 8–10 covering businesses that used to fall under the Simplified Tax Regime.

If your business falls in these classes, you must:

• Keep proper records,
• Prepare your financial statements,
• File your statistical and tax returns annually.

And yes — this applies even if you made no profit or had little activity during the year.

3. Cash Basis vs Accrual Basis — Why This Matters

If you’re under the Comprehensive Tax Regime (Class 8–10), you follow a simple accounting system:

• You record transactions only when money actually enters or leaves your hand.

This is different from bigger businesses (turnover above 50 million FCFA), which must use the accrual system, recording revenue and expenses when they occur, even if money hasn’t moved yet.

Most small business owners do not know this difference — but understanding it makes bookkeeping easier and keeps you compliant.

4. What You Really Need to Know as a Business Owner

Here is where this information becomes relevant to you:

a. Filing your returns protects you

When you file correctly and on time, you avoid:

• Penalties,
• Late fees,
• Audits,
• Tax disputes that can cripple your business.

b. It builds your business credibility

Your financial statements are required when:

• Applying for loans,
• Bidding for contracts,
• Seeking investment,
• Opening corporate bank accounts,
• Applying for visas for business travel.

c. It helps you know your own numbers

Most entrepreneurs run blind.
Your annual accounts tell you:

• Did you actually profit?
• Where did your money go?
• Which expenses drain you?
• What should you improve?

You can’t grow what you don’t measure.

5. What I Feel Every Entrepreneur Should Know

Doing business in Cameroon is not about fear of taxes — it’s about understanding the rules so you can navigate them intelligently.

Many businesses struggle not because of tax, but because they do not know:

• How the system works,
• What to file,
• When to file,
• Or who to trust.

This is why we guide businesses at OpenHub Consulting — from bookkeeping to financial statements to the final filing of statistical and tax returns.

You focus on growing your business.
We handle the compliance.

If you need help, reach out.

Before the year ends, let’s put your accounting in order — no stress, no panic, no mistakes.

📞 +237 683 82 36 32 or WhatsApp +237 699 42 19 47

Start, run, and grow your business — the right way.