How to calculate Cameroon Mobile money transfer 0.2 percent tax
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| How to calculate Cameroon Mobile money transfer 0.2 percent tax |
His Excellency President Paul Biya in his 2021 end of year speech one the 31/12/2021 mentioned that he signed a presidential decree that as of 1st January 2022, all withdrawal and transfer of money via mobile money will incur a tax of 0.2% of the amount to be transfered or withdrawn.
Today I will show you in details how to calculate the Cameroon Mobile Money 0.2% on amounts transferred or withdrawn
In its 2022 draft budget submitted for the parliament’s review, the Cameroonian government has introduced a new tax on electronic money transactions.
The tax is planned to be applied to transactions carried out through all the traceable technical platforms (like internet, mobile phone, wire order, telex, fax) except for bank transfers and electronic transactions carried out to pay tax and customs duties.
The tax will also be applied to cash withdrawals from financial institutions or mobile telephony operators.
It represents 0.2% of the amount sent or withdrawn. According to the draft budget, it will be collected by financial companies and mobile telephony operators and transferred into the public treasury by the 25th of the month following its collection.
The tax is levied when the funds are sent but also withdrawn. So, For example when you send XAF50, 000 to someone, you will incur a 0.2% tax and Also, when withdrawing the fund you were sent, you will also incur the 0.2% tax.
Mobile Money operators are already sending messages to their clients to remind them about the new tax.
"Dear valued client, in application of the Finance Law, starting 01 January 2022, a 0,2% tax is applied to transfer and withdrawals.Thanks for your understanding"
How to calculate Cameroon Mobile money transfer 0.2 percent tax
Considering the example above, let's do practical calculation.
Amount to be send or withdrawn= 50,000
Tax percentage= 0.2% = 0.2÷100= 0.002.
Formula: 0.2 of the amount sent or withdrawn. That's is,
Cameroon Mobile Money tax = Amount sent or withdrawn × tax percentage.
50,000× 0.002 = 100frs
This means to send or withdraw 50,000 you must have more than 50,100 francs in your account if the company is not charging you.
Who pays the 0.2% tax?
As it stands, if the mobile money operators reduce their charges on Money transfer by the same percentage, then the citizens will not be affected.
If they maintain their charges, you are the one to pay the 0.2% tax
Conclusion:
To calculate the Cameroon mobile money 0.2% tax is simple, you just need to multiply the amount you are sending or withdrawing by 0.2 then divide the answer by 100.
Thanks for reading. If you have any questions, please ask via the Comment section.