Employer Tax Contributions

Tax Type	Rate	Base
Social Security (CNPS) Pensions, Family, Maternity	7.7%	Gross monthly salary (capped at XAF 750,000)
Social Security (CNPS) Occupational Injury	1.75% - 5%	Gross monthly salary (rate varies by risk classification)
Housing Loan and Employment Fund (CRH)	2.5%	Total salaries and fringe benefits
Personal Income Tax (PIT) Withholding	Progressive (11% - 38.5%)	Employee's taxable income

Filing & Compliance

• Register employees with the National Social Insurance Fund (CNPS) within 8 days of hiring.
• Submit monthly declarations and payments for Personal Income Tax (PIT) and social contributions to the Directorate General of Taxes (DGI) and CNPS by the 15th of the following month.
• File annual wage declarations and issue salary slips detailing deductions and net pay.

In Cameroon, employee tax deductions are calculated based on a progressive tax system with specific deductions allowed, impacting an employee's net pay.

Cameroon Employee Tax Deductions

As of today, February 5, 2025, this information is current, but may be subject to changes in the future. Therefore, it is always recommended to confirm the latest regulations with official sources.

Income Tax (PIT)

• Progressive Rates: Cameroon's Personal Income Tax (PIT) follows a progressive structure. While specific percentages and brackets can vary based on legislation, the principle is that higher earners are taxed at higher rates. For example, rates can range from 11% for lower income levels up to 38.5% for higher levels. You can find the current income brackets and tax rates from the tax administration.
• Deductions: Several deductions can reduce the taxable income:
  • Business Expenses: Up to 30% of the taxable salary can be deducted as business expenses.
  • Social Security Contributions: Employee contributions to the social security system are deductible.
  • Standard Abatement: A standard annual deduction of XAF 500,000 is typically available for wages and salaries.
• Threshold for Deductions: Income tax is generally deducted at source only for salaries equal to or exceeding XAF 62,000 per month. Earnings below this are exempt from direct income tax withholding.
• Employer Responsibilities: Employers are responsible for deducting income tax from employee salaries and remitting the tax to the relevant authorities before the 15th of each month. Annual tax returns and any outstanding tax balance are typically due by March 15th of the following year.

Other Deductions

• Additional deductions or allowances might exist depending on the nature of employment or specific legal provisions. It is crucial to stay updated on the latest tax regulations to ensure accurate payroll calculations.

Additional Information

• Tax Year: The Cameroonian tax year typically aligns with the calendar year.
• Penalties: Late filing or payment of taxes can result in penalties, such as interest charges, so adherence to deadlines is crucial.
• Specific Regulations: It is advisable to stay informed about current tax laws and consult official sources or tax professionals for precise details.

This detailed summary offers insights into Cameroon's employee tax deductions and obligations. Always verify the most recent updates as tax laws can change.