Cambodia Investment Review

EuroCham and AmCham Collaborate with GDT to Discuss Tax Reforms and Introduce Several Initiatives to Improve Cambodia’s Tax Environment

EuroCham and AmCham Collaborate with GDT to Discuss Tax Reforms and Introduce Several Initiatives to Improve Cambodia’s Tax Environment

EuroCham and AmCham have hosted their first joint tax forum on September 18, 2024. The event, attended by senior officials from the General Department of Taxation (GDT), tax experts, and members of both chambers, focused on several new initiatives aimed at creating a more transparent and efficient tax environment for businesses operating in the country.

GDT Introduces New SOPs and Digitalization Efforts

The forum opened with remarks from H.E. Kong Vibol, Director General of the GDT and Delegate of the Royal Government of Cambodia, who highlighted the GDT’s recent efforts to engage with the private sector to streamline tax processes. Key initiatives include the introduction of Standard Operating Procedures (SOPs) for tax audits, the establishment of a Special Tax Audit Unit, and hiring tax professionals from the private sector. These changes are complemented by the ongoing digitalization of the GDT’s systems, designed to make tax compliance easier for businesses.

“We have worked hard to improve our services and make the tax filing process more efficient for businesses,” said H.E. Kong Vibol. He pointed to these initiatives as evidence of the GDT’s commitment to reform.

H.E. Kong Vibol, Director General of the GDT and Delegate of the Royal Government of Cambodia,

Business Leaders Emphasize Need for Clear Tax Policies

EuroCham Chairman Tassilo Brinzer and AmCham President Casey Barnett underscored the importance of these reforms in attracting foreign direct investment (FDI) to Cambodia. Brinzer welcomed the issuance of SOP guidelines for tax audits and praised the extension of tax stimulus for Siem Reap’s tourism sector through 2025, noting, “This is good news for businesses in the tourism industry, and we hope the reform process continues at a steady pace.”

Barnett highlighted Cambodia’s potential to attract manufacturing investment, especially as companies look to relocate from China due to rising labor costs. He pointed out that a fair and clear tax system is crucial in making Cambodia a viable destination for such businesses.

“A fair and clear tax system will play a key role in making Cambodia an attractive destination for these companies,” Barnett said.

Tax Forum 2024 Panel Discussion.

Tax Audits and Suggestions for Improvement

During a session focused on tax audits, Edwin Vanderbruggen, Senior Partner at Andersen, and AmCham Vice-President Anthony Galliano addressed challenges both taxpayers and tax authorities face. Vanderbruggen highlighted that audits can become overly lengthy when taxpayers fail to submit timely information, while Galliano provided recommendations for improving the audit process. These included reducing deemed reassessments, introducing independent arbitration, and eliminating commissions for tax auditors.

Galliano commended the collaborative nature of the event, stating, “The 2024 Tax Forum was a landmark achievement as it brought together the American and European chambers to work alongside the General Department of Taxation in pursuit of continuous improvement in the Kingdom’s tax system.”

The forum represents an important effort by Cambodia’s government and business community to foster a conducive environment for investment, with ongoing collaboration between EuroCham, AmCham, and the GDT expected to continue as Cambodia’s tax policies evolve.

Related Articles