Cambodian Taxation Authorities Collaborate With Foreign Chambers Of Commerce
By
B2B Cambodia
on
The General Department of Taxation (GDT) recently convened a significant meeting with representatives from the European Chamber of Commerce in Cambodia (EuroCham) and the American Chamber of Commerce in Cambodia (AmCham), to discuss various taxation-related concerns and promote cooperation between the government and the private sector.
The meeting was co-chaired by H.E. Kong Vibol, Minister Attached to the Prime Minister and General Director of the GDT, Tassilo Brinzer, Chairman of EuroCham, and Devin Barta, President of AmCham, and took place on October 5, 2023.
EuroCham and AmCham delegations met with H.E. Kong Vibol on October 5, 2023.
The meeting covered seven key agenda items, including Tax Auditor Bonus, Excessive Interest Charged on Reassessments, Tax Incentives Requiring Advance Approvals, the Process of Approving "Audit Report" and "Proper Accounting Records," Voluntary Disclosure, Timeframe for the Implementation of a New Law, and Stamp Duty on Share Capital Increase.
Vibol commenced the discussions by expressing his appreciation for the transparent and open dialogue, emphasizing the importance of identifying the root causes of taxation-related issues and promptly addressing them. The private sector, represented by EuroCham and AmCham, acknowledged the GDT and Ministry of Economy's support, extending further congratulations on the successful implementation of reforms and efforts to reduce bureaucratic red tape, especially through digitalisation.
Taxation Unpredictability
The private sector representatives expressed concerns about a lack of consistency on how taxpayers are being audited, sharing their observation that some cases showed the taxpayer clearly in the wrong due to a variety of factors, while other cases were not as clear and caused confusion on whether it was the taxpayer or the auditor who was correct. The private sector suggested several solutions to this problem, including:- Publish Tax Rulings: To increase transparency and predictability, all tax rulings should be made public on the GDT's website, with a focus on providing content in English to reduce interpretation differences.
- Clearer Regulations: Detailed regulations should be in place to eliminate vagueness when implementing tax laws.
- Immediate Implementation: Tax laws should be implemented after they are announced, with past wrongdoings exempted.