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Cambodia: New law on taxation soon, to be in sync with Investment Law
The government will soon introduce an amended law on taxation that is aligned with the provisions of the new Investment Law, said Kong Vibol, Delegate of the Royal Government in charge as Director General of the General Department of Taxation, yesterday.
Giving the keynote address at the first Tax Updates and Audits Forum organised by the American Chamber of Commerce (AmCham) at Raffles Hotel Le Royal in Phnom Penh, Vibol said the views expressed by the private sector would also be reflected in the new law.
“The new law will take into account the needs of the developing economy. The draft of the law is ready and it is now with the Ministry of Finance. It is likely to be introduced by the year-end,” the Director General said.
“The government doesn’t want any misinterpretation regarding its development goals. The new tax law will encourage more investment in the country as the country continues to be business-friendly,” he added.
Vibol pointed out that the GDT has been following a policy of widening the tax base instead of increasing taxes and this has produced impressive results for the department even during the years hit hard by Covid-19.
The GDT collected 101 percent of the targeted tax revenue in 2020 and 124 percent in 2021. This year till September, it crossed 95 percent and in all likelihood is to exceed the target again.
“We encourage voluntary payment of taxes and the effort is to make more businesses register with the GDT,” the Director General said while urging all businesses to comply with their taxes as this was the main source for the government to finance its infrastructure projects and welfare programmes.
Vibol said the GDT has come a long way in digitalization and with the provisions like e-filing of tax documents it has managed to provide better services to the taxpayers. “People no more have to queue up at the offices of GDT for hours to pay their taxes,” he said.
The GDT, according to Vibol, would have a new building and the construction work would start soon with a target to get completed by 2024. It would have at least 20 meeting rooms for the private sector.
AmCham President Anthony Galliano in his opening remarks said GDT’s reforms like the abolishment of the ‘Estimated Regime of Taxation’ and the restructuring of the Self-Assessed Regime, created a level and fair playing field, eliminating underpayment of tax, expansion of the tax base, and streamlining of productivity in the tax department.
Anthony added that e-filing and e-payment of taxes have produced a qualitative change to the way taxes are paid. Online registration of businesses with a 14-day completion window and tax reforms have all contributed to increasing tax collection, he said.
Anthony also commended the GDT’s efforts at standardization of the branches and professionalization of staff besides educating the general public through seminars, classes, and the use of social media.
Setting year-on-year records in tax revenue collection without raising taxes or introducing new taxes is a tremendous achievement, he said. “For example, the introduction of VAT on E-Commerce expands the tax base but doesn’t burden domestic enterprises,” Anthony pointed out.
Anthony was also the moderator at the panel discussion attended by top officials from the GDT and representatives of the private sector.
Source: https://www.khmertimeskh.com/501158889/new-law-on-taxation-soon-to-be-in-sync-with-investment-law/