Cambodian Tax Amnesty 2024 Deadline Extended
The Deputy Prime Minister and Minister of the Economy and Finance, Dr. Aun Pornmoniroth, signed Prakas No. 071 MEF.P.GDT on Incentives for the Voluntary Correction of Tax Declarations (Prakas 071) at the end of January 2024 which means taxpayers or withholding agents who voluntarily request for the correction of the accounting records and tax returns shall be liable to be exempted from administrative sanctions.
These exemptions also apply to additional tax, interest and fines. Prakas 071 amends the application of Prakas 217 MEF.P (Prakas 217) issued by the Ministry of Economy and Finance in March 2022.
To benefit from this voluntary disclosure, this needs to be completed before the end of June 2024. The following needs to be completed:
- For the requests to correct the accounting records and tax returns on transactions that occurred before January 2024 only. Separately, the request for correction to the tax returns on transactions that occurred from January 2024 onwards shall not be exempted from this administrative sanction.
- For the requests to correct the accounting records and tax returns during the tax audit, which was made before the tax auditor found the fault of the taxpayers or the withholding agents only (in case the auditor does not disclose and no record of the audit results).
If the auditor identifies a correction on tax returns during the tax audit for tax declarations, taxpayers or the withholding agents will pay an additional 10% penalty tax and monthly interest of 1.5% following laws and regulations on taxation.
In this case, the taxpayers and withholding agents shall be subjected to additional tax and delayed interest according to the procedures and results of the tax audit as additional tax and delayed interest already paid through the voluntary correction of the tax returns are allowed to offset against the additional taxes and delay interest which is the outcome of tax audit.
Law firm DFDL, outlines some areas to watch out for and we suggest any business and taxpayer consult a professional for tax purposes.