Cambodia Investment Review
The Private Sector Working Group-D (PSWGD) convened on February 13, 2025, at the Cambodia Chamber of Commerce, bringing together key stakeholders to discuss tax-related concerns and updates from the Technical Working Group on Tax (TWG). The meeting provided a platform to review ongoing issues with the General Department of Taxation (GDT) and achieved a resolution on at least one pressing matter.
Key Updates from the Technical Working Group on Tax
The TWG provided updates on several tax-related challenges identified during discussions with the GDT, including:
- Pre-registration Tax Obligations: Clarification on tax return filings and Tax on Salary (TOS) obligations for enterprises before they are officially registered with the GDT.
- Debt Collection Enforcement: Issuance of debt collection letters by the Tax Arrears Bureau.
- VAT on Dental Services: Discussion on the definition of dental services and its implications under VAT regulations.
- Taxpayer Classification Changes: Updates on the notification period and procedure for changing taxpayer classification under the self-declaration regime.
- VAT Registration and Cancellation: Procedures regarding the cancellation of VAT certificates and temporary suspension of VAT registration.
- Employee Bonuses and Salaries: Examination of regulations concerning accumulated bonuses and salaries that remain unpaid within 60 days of the taxable year.
Resolution on Double Taxation Agreement Pre-Approval
One key achievement of the meeting was the resolution of an issue raised by AMK Microfinance Institution Plc concerning the pre-approval process for Double Taxation Agreement (DTA) relief. The meeting acknowledged that there were previously no clearly defined approval timelines for such applications. Following discussions, a resolution was reached to address this concern, ensuring improved transparency and efficiency in the process.
Acknowledgment of Key Contributors
The PSWGD extended appreciation to several individuals and organizations for their contributions, including:
- Arnaud Darc, Vice-Chairperson of the International Business Chamber (IBC) and Co-Chair of Working Group-D on Law, Tax, and Governance.
- Oknha Socheat Lim, CPA, Co-Chair of the Technical Working Group on Tax (TWG).
- The IBC Secretariat and members of the Technical Working Group on Tax, whose collective efforts facilitated productive discussions and collaboration.
Looking Ahead: March 2025 Meeting
The IBC Secretariat is preparing for the next PSWG-D meeting, scheduled for March 13, 2025, where discussions will focus on new issues raised by the private sector. The PSWGD thanked all participants for their active engagement in shaping Cambodia’s tax landscape and fostering continued dialogue between the public and private sectors.
