Cambodia: Double-tax draft law with Malaysia and South Korea shows progress

• May 17, 2020

Cambodia’s double taxation agreements (DTAs) with Malaysia and South Kore is closer to realisation as the government has submitted the DTA draft law with the two countries to the legislative body for approval.

According to the government, the DTA draft law with the two countries is primarily designed for the prevention of fiscal income tax evasion.

Seng Cheaseth, director, Department of Law, Tax Policy, and International Tax Cooperation at General Department of Taxation, said that DTA is not only to foster a business-friendly environment among partners, but is also designed to pave the way to reach free-trade agreements (FTAs) with potential partners.

“The DTA is a foundation and a tool for Cambodia to reach an FTA with potential partners,” he said.

Tax firm DFDL Partner and Cambodia Head of Tax, Clint O’Connell told Khmer Times having a strong network of DTAs is very significant for Cambodia, particularly when it is looking to compete for foreign direct investments with neighboring countries in South East Asia.

He added that DTAs will also help governments to combat the erosion of their tax base by providing information-exchange provisions whereby the tax authorities of the respective signatories to the DTAs may seek to request information about taxpayers from their counterparts to assist them in their investigations.

Source: https://www.khmertimeskh.com/50723892/double-tax-draft-law-with-malaysia-and-south-korea-shows-progress/