Cambodia: GDT, KPMG Tax Institute discuss tax scenario

• Feb 21, 2023

The General Department of Taxation (GDT) and KPMG Tax Institute, an international professional body with expertise in accounting, auditing, advisory and taxation, on Saturday conducted the first-round table discussion on updates and major changes of the new tax law, tax collection methods and the new trends.

Eng Ratana, Director of the Large Taxpayer Department of the GDT, represented Kong Vibol, a Delegate of the Royal Government of Cambodia in charge as the GDT Director General, at the roundtable. Warrick Cleine, Chief Executive Officer of KPMG Cambodia and Vietnam, the government officials, management and staff members of KPMG, leaders and representatives of enterprises were present. Around 270 people attended the discussion.

Addressing the roundtable, Ratana said, “The GDT collected $3,455.11 million in tax revenue, which is 122.54 percent of the plan, as the Cambodian economy recovers from the impact of the Covid-19 and the Russia-Ukraine war. It’s (the increase) not due to rise in taxes on taxpayers, but because of continuous reform and digitalisation of the tax system.”

“Good governance, good administration, effective leadership and management and meritocracy are core elements of reform and modernisation of the GDT. It strengthens tax collection, makes it easier for taxpayers, and harder to avoid taxes. This will contribute to transparency in tax paying and enhance fair competition. This reform has been recognised by the Royal Government, national and corporate, multi-national companies and international institutions like World Bank,

International Monetary Fund (IMF), Japanese International Cooperation Agency (JICA) and Asian Development Bank (ADB),” Ratana added.

The roundtable included discussions on updates and major changes to the draft of the Law on Taxation (new) that the GDT is finalising, the launch of the delayed tax on capital gains, the Global Minimum Tax Policy and tax audit and procedures to protest tax limit.

The speakers also discussed general challenges to VAT on e-commerce, mechanisms to solve them and speed up its implementation on non-resident and resident taxpayers and tax on the expired QIP (Qualified Investment Project) enterprises.

“Owners of enterprises should manage to account and ensure accuracy of tax declaration and net loss or net income must be clear to prevent the tax audit that will reset tax paying and be fined or punished,” Ratana remarked.

Source: https://www.khmertimeskh.com/501242306/gdt-kpmg-tax-institute-discuss-tax-scenario/