The General Department of Taxation (GDT) on Wednesday held the first ever Cambodia-China Tax Forum in Phnom Penh to push awareness of the Cambodian taxation system among the growing Chinese firms in the Kingdom.
Speaking at the forum on Wednesday, GDT director-general Kong Vibol said there is a growing number of Chinese investments in Cambodia and so it is important for investors to understand the Kingdom’s taxation system and recent reforms.
He added that there are several sectors eligible to receive government tax incentives based on investment law and new government prakas.
“I believe there are Chinese investments in the sector eligible to receive incentives, so the forum is not only to raise awareness on tax collection but also on tax incentives,” he said.
Many reforms since 2014
More than 500 accounting and financial employees joined the forum, with most of them from Chinese enterprises operating in the Kingdom.
According to Vibol, Cambodia’s taxation has undergone significant reforms since 2014, resulting in a sharp increase in the government’s annual tax collection revenue.
While it reflected the success of the government’s reforms, he said all investors should be aware of them.
GDT plans to set up a Chinese call centre, serving as a hotline to answer questions related to taxation issues in Mandarin, Vibol added.
Cambodia and China signed a deal in 2016 to avoid double taxation and prevent income tax evasion.
Li An, economic and commercial counsellor at the China Embassy, on Wednesday said Chinese companies try to comply with Cambodian law and regulations, especially on tax obligations.
While existing investors may be more familiar with the Cambodia taxation system, Li said it is important for newcomers to get acquainted with it and its incentives, especially with the reforms of the past few years.
“If they do not [understand the system], they will face increasing costs because they won’t make use of tax incentives,” he said.
“It is also possible they may engage in activities not in line with Cambodian law on taxation even though they don’t intend to.”