Apart from the corporate tax, companies which operate within the forestry sector in Cameroon are subject to a particular tax regime.
What is the nature of the specific taxes of the timber sector?
The forestry activity is subject to the common law taxation and to particular levies, notably:
- the annual forestry royalty (AFR) ;
- the felling tax (FT) ;
- the Factory Admission Tax (FAT) ;
- the export surtax (ES) ;
- export duty (ED) ;
- transfer tax (TT) ;
- the deduction on purchase
Which are the tariffs or levies of forestry taxation?
Annual Forestry Royalty
Price floor: Sale of felled wood 2 500 frs/ha
Concession or UFA 1000 frs/ha
Rate of the felling tax
2.5% of the FOB (Free on Board) price of the volume of felled logs.
Rate of factory admission tax
2.25% of the FOB price of transformed logs.
It varies according to the nature of the exported species:
First category species:
- Ayous 3 000 frs/m3
- Promotion species of the first category other than ayous 4 000 frs/m3
Species of the second category:
- Single tariff 500 frs/m3
The abovementioned amounts are the floor rates. The acquisition of the exploitation titles is through invitation to tender.
Other duties and taxes
- for tree felling permits, the price is fixed on the FOB value per specie.
What are the fiscal obligations of taxpayers of the forestry sector?
Obligations to file returns
The returns are subscribed at the \”Programme for the Securitisation of Forestry Revenue\” (PSFR) or the structure in charge of the large companies \”the Large Tax Unit\” for companies within its portfolio.
Filing the Felling Tax Return
Any holder of an exploitation title is bound during the course of his activity to declare the monthly production of logs on the basis of corresponding site booklets (DF 10) latest on the 15th of the following month.
Declaration of the Factory Admission Tax (FAT)
- the declaration is done monthly by the transformer latest on the 15th of the following month;
- It is submitted on the basis of factory booklets retracing the volume of logs transformed or set for transformation.
The deduction on purchase
The deduction on purchase, at the rate of 5%, is the deduction at source during the settlement of bills for the purchase of wood in logs by forestry companies.
The obligations of payment
The AFR is paid after the attribution of the title by its holder under the following conditions:
- AFR on sale of felled timber : total payment within 45 days following the notification of attribution or renewal of the exploitation title;
- AFR on concession: payment in three instalments of an equal amount on the 15th March, 15th June and15th September.
The FAT is paid or retained at source by the transformer of the wood and paid into the coffers of the PSFR or the Large Tax Unit.
The FAT is paid or retained at source by the client for logs bought from third parties and paid into the coffers of the PSFR or the Large Tax Unit.
The deduction on purchase is retained at source and paid into the coffers of the PSFR or the Large Tax Unit.
The ES is paid during the export of logs at the level of the customs cordon.