Problems relating to Trade and Investment on Cambodia
14. Taxation Systems |
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Issue |
Issue details |
Requests |
Reference |
| (1) Value Added Tax is not Registered by Many | - Despite the fact that registration of value added tax (VAT) is a mandatory requirement, it is not registered by many enterprises. Tax collection is not adequately made. | - It is requested that GOC promotes VAT registration by each enterprise. | - Cambodian laws |
| (2) Nebulous Base of Issues Raised at Tax Investigation | - Tax Investigation takes place 3-times for the same year. Tax Investigator raises issues without giving logical reasons, or interpretation, some of which are not based in tax laws. | - It is requested that GOC takes measures to overhaul Tax Laws, provides training to Tax Investigators regularly for updating their professional knowledge and changes/revisions of legislation, to thoroughly enforce smooth filing of Tax Returns and the Subsequent Tax Investigation. | - Cambodian tax laws |
| (3) Unrefunded Withholding Tax On Service(WHT) | - Primarily, the recipient of service pays to Taxation Bureau, Withholding Tax (about 10%) for service rendered on behalf of the person providing service by deduction. However, in reality, it seems no refund is made by Taxation Bureau so that, more often that not, under the contract, the recipient of service is made doubly responsible for Withholding Tax. (Note) Where the recipient of service is in a weaker bargaining position, the person providing the Service may refuse the contract, unless the former is willing to assume Withholding Tax. For example, double payment of Withholding Tax arises where the lessee has no alternative but to move in to the leasehold property. |
- It is requested that General Department of Taxation (GDT) will affect withholding tax refund as set forth in the law. | - Prakas 599 on the Enterprise's deductible withholding taxes (Prakas 599) |
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