Modeste Mopa Fatoing began a four-day working visit to the country’s economic capital. The Director General of Taxes (DGI), Modeste Mopa Fatoing, is continuing his four-day working visit on February 18, 2021, which began on February 16, 2021 in Douala. This visit aims to present to large companies, socio-professional groups, etc., the tax reforms and innovations of the 2021 Finance Law.
According to the daily Le Messager which reports this information in its edition of February 18, 2021, for the day of Tuesday February 16, the DGI explained to the 250 large companies, to socio-professional groups such as Mecam, Sydustricam, Gfbc, Gpp, Gpc, Amcham , Ccia all based in Douala, the major innovations of the 2021 Finance Law.
According to the explanations of the Directorate General of Taxes, “the exemption will pass, among other things, by the reduction of two points (from 30% to 28%) of the rate of income tax for the year 2021, for the benefit of Small and medium-sized enterprises; the elimination of the axle tax for the benefit of carriers; corporate tax exemption for the hotel industry.
But also the renewal for fiscal year 2021 of the suspension of the tourist tax in order to improve the attendance rate of accommodation establishments heavily impacted by the crisis; the extension for an additional year of the carry forward period for tax losses and repayments deemed to be deferred for the benefit of companies in sectors directly affected by Covid-19 (other tax and financial provisions), etc. “, notes the newspaper.
With regard to measures to promote the agricultural sector, “it is planned to strengthen the tax regime for this sector through the inclusion in the list of VAT exemptions for agricultural inputs and equipment not covered, but also the elimination of excise duties on cosmetics produced locally, in order to enable the local industry to face competition from imported products which remain a factor in the deterioration of the trade balance ”.
The products affected by the excise duty at the rate of 25% on importation are, among others: furniture and wooden articles, certain common food products produced locally, soaps, detergents, toothpicks, natural flowers and artificial. The agriculture, livestock and fishing sectors will also be supported, the newspaper said.
With regard to improving the business climate, several measures are planned at this level. “These include, among other things, the establishment of a proactive tax regime to promote innovative start-ups in the ICT field; the clarification of the VAT territoriality regime on the provision of services in order to preserve the competitiveness of Cameroonian companies; the extension of two additional years of the tax loss carryforward period for the benefit of credit institutions and state portfolio companies undergoing restructuring “, we can read.
