The General Department of Taxation (GDT) in Phnom Penh’s Tuol Kork district in July 2023. Heng Chivoan
Since the advent of the fourth industrial revolution (Industry 4.0), around 90% of taxpayers in Cambodia have opted to use the General Department of Taxation’s (GDT) online system.
GDT general-director Kong Vibol stated that the tax department has undergone substantial reforms since 2013, during a panel discussion on digital public service adoptions at the Cambodia-International Digital Government and Digital Technology Expo in Phnom Penh last week.
He noted that, drawing on the experiences and techniques of tax administrations from various countries, Cambodia’s tax body has transformed into a modern entity, keeping pace with the digital age and exhibiting a high level of professional capacity.
Vibol said this modernisation offers taxpayers better means and opportunities to fulfil their tax responsibilities.
“As a result, currently about 90% of taxpayers are using the GDT’s electronic system for their tax obligations, saving time and providing accuracy and convenience,” he noted.
Vibol mentioned that the adoption of information technology for service provision not only eases the burden on taxpayers but also mitigates unforeseen risks.
He also highlighted the stability of tax revenue during the Covid-19 crisis, despite lockdowns and travel bans.
Chhin Ken, president of the Cambodia Digital Tech Association (CDTA), told The Post on March 19 that the government is intensifying its digital strategy, encouraging all taxpayers to use online systems, which offer benefits in terms of budget, time and simplicity.
He pointed out the GDT’s e-filing system, which enables business owners to submit tax returns from any location at any time.
“The system is an important facilitation for business owners and taxpayers, cutting down on informal costs and waiting times,” he said.
“In this digital age, technology is integral to nearly all business processes. The CDTA is fully committed to contributing to this technological advancement,” he added.
Hong Vanak, director of International Economics at the Royal Academy of Cambodia, observed that Industry 4.0 and the Covid-19 pandemic in early 2020 have expedited the use of digital systems.
He said the increase in technology in the tax sector stems from its convenience, which makes taxpayers comfortable and free from informal expenses.
“This trend aligns with the ongoing industrial revolution, and the preference for technology-based tax payments is expected to grow rapidly in the future,” he said.
Cambodia collected about $3.612 billion in taxes in 2023, 101.13% of the Law on Financial Management for the year, marking an increase of $155.13 million, or 4.49%, compared to 2022, according to the GDT.
