THE TAX ON LAND PROPERTY IN CAMEROON

Tax is defined as a deduction made by a public authority (tax authorities, customs, municipality, etc.) from part of an individual's assets for the purpose of general interest. The land property tax (TPF) is therefore a tax on built or unbuilt real estate located in the capitals of administrative units, or in towns that benefit from paved roads, water supply, electricity and/or telephone. Are also subject to it, the natural or legal persons, owners of these goods (owners of right) or usufructuaries within the framework of certain leases: emphyteutic, construction, rehabilitation and authorizations of temporary occupation of the public domain (owners of fact). It is payable each year between January 1 and June 30 at the tax center of the location of the building, under the declaration system. What is then the basis of the TPF for which sanctions in the event of breaches and who can be exempted? Articles 577 and following of the General Tax code (CGI) edition 2021here, as well as articles L.53 and following of the book of tax procedures here, specifies the legal regime.

• I. LAND PROPERTY TAX BASE

Under the terms of article 580 of the CGI, the TPF is based on the value of buildings and their constructions. It must be declared by the owner honestly because in the event of a reduction or absence of declaration, an administrative declaration will be made therein with reference to the price list. In case of disagreement, an expertise may be requested from the judge before the competent court by means of a request.

The legislator adopting incentive measures to remove the additional municipal centimes to consider only the taxable rate of 0.1% which is then multiplied by the value of the land, possibly adding to the buildings it houses. Thus, for an unbuilt plot of 500 m² with a market price estimated at 15,000 FCFA, the value of the land will be 15,000 x 500, for a total of 7,500,000 FCFA; The tax amount will then be (7,500,000 x 0.1) / 100 = 75,000 FCFA/year. While for the same land housing a construction estimated at 10,000,000 FCFA, the amount of the TPF will be (7,500,000 + 10,000,000) x 0.1 / 100 = 175,000 FCFA/year.

• II. PERSONS EXEMPT FROM LAND PROPERTY TAX

Not all properties are subject to property tax. This is the case, for example, of those not having an industrial and commercial character, belonging to the State, to decentralized territorial communities and to public establishments; this is also the case for schools and public and private hospitals, faith-based organizations and cultural associations or charities declared of public utility, with regard to their buildings assigned to non-profit use; this is also the case for industrial, agricultural, livestock and fishing companies with regard to their constructions for use as factories, hangars or warehouses, with the exception of constructions for office use which are erected there; this is also the case for the properties of international organizations that have signed a headquarters agreement with Cameroon; diplomatic representations, subject to reciprocity; clubs, associations or approved sports bodies, properties intended for sports activities as well as sports infrastructures; Finally, it is the case of land exclusively allocated to agriculture, livestock and/or fishing.

3. SANCTIONS IN CASE OF NON-PAYMENT

The book of tax procedures specifies that if the taxpayer does not pay the said tax, his land ownership and his name will be published in the list of insolvent taxpayers of the General Directorate of Taxes and will be subject to a notice of recovery and to a collection title, which are enforceable titles for the collection of direct taxes; it is addressed to the insolvent taxpayer. The latter has 15 days to comply, failing which, with a view to a tax adjustment with application of the corresponding penalties, he may be prosecuted.

 It should therefore be noted that late payment interest is 1.5%/month for a ceiling of 50%. If the subject person still does not comply, he is liable to penalties relating to the closure of the establishment, the blocking of bank accounts, criminal prosecution for imprisonment of 1 to 5 years and/or fine of 500,000 to 5,000,000 FCFA, temporary or permanent ban on bidding for public contracts, notice to third party holder for payment by a third party, generally debtor of the taxpayer and finally, seizure-attribution or even to the seizure and sale after formal notice equivalent to an order to pay, which has had no effect (see article L.59 of the book of tax procedures.

Keywords :

Land property tax

Taxpayer

Public authorities

Recovery