Thailand
Cambodia: GDT collects $1.34 billion in Q1 amid challenges
The General Department of Taxation (GDT) of the Ministry of Economy and Finance (MEF) has collected more than $1.34 billion of tax revenue in the first three months of 2023, an increase of 6.39 percent compared to the same period of the previous year, while there have been challenges that required responsive measures, said a GDT statement.
The statement released on Wednesday by GDT pointed out that the internal tax authority has collected first-quarter tax revenue at 37.63 percent of the target set in the national budget law 2023, but it has risen by $80.73 million compared to the first-three-month period of 2022, while in March this year alone, GDT collected $804.45 million.
The amount of tax revenue that GDT collected in March equalled 22.52 percent of the collection target stipulated in the national budget law for 2023 and it has increased 7.16 percent or $53.74 million from the same month in 2022, said the press statement, adding that the high increase was due to annual income tax revenue paid in March.
However, GDT’s Director General Kong Vibol pointed out that in the first three months of 2023, the revenue from tax debt settlement has decreased compared to the same period of 2022, but he did not mention the decreased amount and percentage, added the press statement issued on Wednesday after GDT’s quarterly meeting also attended by tax branch officials.
“We have faced challenges as some enterprises have continued taking excuses in terms of the uncertainties and changes of global contexts and tried to delay or avoid paying tax debts, while some that have been allowed to pay debts by phases have also been late in settling the tax debts and requested for further delays of payments required as per set schedules,” Vibol said.
GDT has encouraged both the provincial and district tax branches to monitor tax filing and payment. “Some enterprises are successfully registered, but after that for a short period of time, they have disappeared from their registered locations. This could be due to relocation without informing [tax officials] or the creation of a network of systematic tax avoidance,” he said.
“We will execute the government’s measures to provide support to the construction and real estate sectors to maintain the stability of these sectors that are acknowledged as the priorities that have helped boost the economic growth,” said Vibol, adding that GDT will also continue implementing the additional measures set by the government to support the recovery of tourism.
Khun Darith, Managing Partner of audit, accounting and tax solutions at accountancy and auditing firm K Professional Accountants (KPA), told Khmer Times yesterday that GDT’s tax collection in the first quarter of this year has increased faster—6.39 percent—than expected as Cambodia and the world have faced an uncertainty situation and slow economic outlooks.
“What I have seen in terms of the difference between the first quarter of this year and last year is that this year it is fully digitalised, which means e-filing is fully applied in tax modernisation enhancement,” said Darith, adding that the over 6 percent is a great increase amid such tight economic situation. “I did not expect that, but it is good that it increased,” Darith said.
Full online filing of monthly and annual income tax returns and payments was set for all types of taxpayers to implement from January 2023 onward after GDT had ended the E-Documents Submission System on January 10, 2023.
Large and medium taxpayers are required to use the E-Filing and Tax-on-Income E-Filing (ToI E-Fling) systems to file their monthly tax returns no later than January 25, 2023, for business transactions in December 2022 and annual income tax returns and payments no later than March 31, 2023, while small ones would be required to use the Tax Prefiling App and follow the same deadlines.
“Previously, filing tax returns was done through paper forms and so sometimes agents or brokers are also not transparent for both taxation authority and business owners. Now, filing online would be like putting also documents on the table that everyone can see. This is transparent, effective, accountable and quality,” said Vibol, adding that GDT has developed 74 applications.
Source: https://www.khmertimeskh.com/501280694/gdt-collects-1-34-billion-in-q1-amid-challenges/