EuroCham And AmCham Host Joint Cambodia Tax Forum 2024
On September 18, 2024, EuroCham and AmCham co-hosted their inaugural joint tax forum, uniting tax experts, chamber members, and officials from the General Department of Taxation (GDT) to address Cambodia's most pressing tax challenges.
The event was presided over by H.E. Kong Vibol, Director General of the GDT, who highlighted the department's enhanced collaboration with business chambers and the private sector in recent years.
The General Department Of Taxation's Key Initiatives And Developments In Cambodia
Kong Vibol discussed the GDT’s ongoing efforts to improve the tax administration in Cambodia. He emphasised initiatives such as the new Standard Operating Procedures (SOP) for audits and tax crime investigations, aimed at increasing predictability and transparency. He also announced the establishment of a Special Tax Audit Unit, which aims to limit businesses' audits to just one per year. The Special Tax Audit Unit, however, only applies to gold certificate taxpayers.
Additionally, Vibol revealed that the GDT is developing a new tax application, 'CTA Cambodia', designed to offer comprehensive tax services, including registration, tax returns, and audits. This application will also feature an AI-driven taxpayer service to provide consistent regulatory explanations.
Cambodian Government Tax Reform And Development
In his welcoming remarks, EuroCham Chairman Tassilo Brinzer stressed the importance of open dialogue between the private sector and government authorities. He noted that effective tax collection and payment processes are vital for sustaining and stimulating Cambodia's dynamic economy, which must adapt to both regional and global developments.
Brinzer stated, “As a young and evolving economy, Cambodia's tax policies must align with international best practices. We hope the Royal Government continues to refine tax incentives for investors to reflect progressive and sustainable policies that foster a modern economy.”
He further emphasised that simplifying tax regulations contributes positively to the investment climate in Cambodia, which is essential for attracting high-quality investments.
Strengthening Joint Advocacy Between EuroCham And AmCham In Cambodia
Casey Barnett, President of AmCham, remarked that while both chambers have organised separate tax forums in the past, this year’s joint effort amplifies their advocacy efforts.
“We share common concerns, and by joining forces, we can be more influential,” he explained.
Barnett noted that AmCham has engaged directly with the Prime Minister to discuss tax issues and has regular interactions with the GDT and other private sector working groups focused on tax law and governance. He highlighted a few recent government reminders, such as Prakas 71, which states that businesses will have until mid-2025 to submit revised tax declarations without penalties.
Watch a snippet of H.E. Kong Vibol's speech from Tax Forum 2024:
Proposal For A Specialised Tax Court
Speaking with B2B Cambodia, Edwin Vanderbruggen, co-founder of VDB Loi (now Andersen in Cambodia and Vietnam), pointed out that tax audits in Cambodia take longer than in other countries due to the absence of an independent dispute settlement system. He advocated for the establishment of a specialised tax court.
“Very few individuals appeal tax decisions, and almost no one refers their cases to court. This lack of a credible decision-making body leads to prolonged disputes,” he explained. “It’s akin to a divorce without a court to resolve disagreements; the conflict continues indefinitely.”
The forum underscored the critical need for ongoing collaboration between the private sector and government to create a fair and efficient tax system in Cambodia.
Stay tuned for more of our upcoming coverage on Tax Forum 2024.