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Cambodia: Despite risks, GDT collection grows 28.62% in 7 months
Tax authorities have collected approximately $2.21 billion of tax revenue — 78.39 percent of the budget law in the first seven months of the year, which soared by 28.62 percent or about $491.29 million compared to the same period last year, said a release by the General Department of Taxation (GDT) on Monday.
Cambodia has been facing risks of uncertainties, changes in the global economic context, waves of continuous spreading and transforming of Covid-19, and tensions of geopolitics and global security that have been affecting the country’s economy, the release said.
However, despite all of these risks, GDT has still been able to manage the tax revenue over the last two years from 2020 to 2021 and the first seven months of 2022 effectively—rising the amount that exceeds the budget law and responding to the demand for cash for expenditures of the government.
GDT collected about $240 million of all kinds of taxes via its revenue data online management system in July 2022 alone—8.49 percent of the budget law—and the amount collected rose by about 20 percent or $156.15 million compared to the same month of 2021, Kong Vibol, director general of GDT said.
“The continued rising tax revenue was made from general collection activities of the officials and filling the loopholes that let the revenue leaked out as the tax authorities have continued enhancing good governance, good administration and pro-activeness, especially in preparation, development and launch of information systems since the pre-pandemic period,” the release stated.
Tax officials have visited 784 enterprises in Beung Kak 1 quarter of Tuol Kork district since the move was undertaken early this month, according to the release, adding that they also solved over 16,000 cases of problems regarding using online system and applications in the January-July period of this year—2,307 cases in July alone.
GTD which operates under the Ministry of Economy and Finance is set to collect over $2.8 billion for 2022 as a whole, the release said, adding that the tax officials will continue visiting businesses in all 14 districts, strengthening the management of enterprises whose owners request for suspension or termination but then reopening.
“Prepare tax retreat on implementation of strategic and executive plans of tax collection strategies and utilising information technology system. Continue strengthening recording and settling tax debts and releasing strict measures to claim tax debts, especially large tax debts that are potentially prioritised,” the release pointed out.
Stamp tax on transfers of immovable properties—a category of tax paid when an immovable property is acquired through various forms including sale-and-purchase, exchange, gift, or succession—contributed about $875 million or 44.38 percent, which was the biggest contributor to the total tax revenue of approximately $1.2 billion in the first half of this year.
Khun Darith, managing partner of accounting and tax solutions at accountancy firm K Professional Accounts (KPA), told Khmer Times that transfers of immovable properties could be made with either hard or soft titles and the stamp tax on transfers is generally paid at four percent of the immovable property price specified in the list of tax authorities.
“The contribution of stamp tax on transfers of immovable properties reflects that there may be many transactions of sale-purchase of immovable properties,” said Darith, adding that the exception for payment of the tax is for acquisition among blood family such as transfers from parents to children.
Source: https://www.khmertimeskh.com/501133080/despite-risks-gdt-collection-grows-28-62-in-7-months/