Cambodia: Follow NBC official exchange rate, taxpayers told

The General Department of Tax (GDT) of the Ministry of Economy and Finance has asked tax payers to follow the official exchange rate issued by National Bank of Cambodia (NBC), in a move to strengthen tax collection efficiency.

The GDT’s move came after tax payers used the exchange rate issued by GDT when paying tax since May this year.

GDT said that this was made after meeting with the NBC of the formula in setting exchange rate which reflects the actual market.

“The General Department of Taxation has decided that all taxpayers should use the official exchange rate of the National Bank of Cambodia in order to strengthen the management of tax collection effectively, transparently and efficiently, especially to make it easier for taxpayers to use the exchange rate which is suitable for the market exchange rate,” the GDT said in the statement issued last week.

The NBC started in August to set the official exchange rate for the dollar based on the foreign exchange buying and selling prices in the currency market.

The official exchange rate on the National Bank of Cambodia Platform (NBCP) is based on the exchange rate in the currency market the previous day.

NBC said the NBCP is highly active now with many banking and financial institutions raising the volume of transactions through it.

According to the provisions in the Organization and Conduct of the NBC in Article 31, the central bank regularises the domestic exchange rate and is authorised to declare the official foreign exchange rates for the riel to other currencies and is to participate in international financial agreements on behalf of the government.

As of October 25, the General Department of Taxation collected about $2,930 million in tax income, achieving 104 percent of the financial plan.