Taxpayers should ensure proper implementation and timely tax declaration to avoid interruptions on the last tax declaration day, the General Department of Taxation said, noting that it makes adjustments and is continuously developing information technology systems to make it easier for taxpayers.
Heng Soknang, deputy director-general of the GDT, said this during a workshop on the “Rights and Obligations of Taxpayers and its purportedly more comprehensive electronic filing system (e-Filing System)” on August 3.
The purpose of the workshop was to raise awareness over the implementation of laws and regulations related to taxation, with the aim of strengthening tax compliance and promoting a tax-paying culture in Cambodia.
Declaring taxes and filing tax returns are a legal obligation, he said, adding that taxpayers must submit their tax returns on time and not on the last day, which could cause the system to malfunction.
“I would like to ask taxpayers to declare taxes for the development of the nation. No one in the world can avoid paying taxes, including myself,” he pointed out, saying that everyone should contribute by paying taxes to the state.
Taxpayers were also encouraged to register for a tax professional training at the National Tax School to obtain proper professional skills in order to participate in the implementation of laws and regulations on taxation.
Hong Vanak, an economics researcher at Royal Academy of Cambodia, told The Post on August 6 that updates to the tax system, introduction of online tax technology and incentives have seen more Cambodians meeting special tax obligations in the last decade.
Tax revenue is very important for governments to develop their country in terms of law establishment, human resource, infrastructure systems, road construction and the payment of civil servant salaries.
“Participation in the implementation of tax obligations by the people is a contribution to the development of a more progressive and prosperous nation,” he said.
However, Vanak opined that to increase the efficiency of tax collection – taxes and customs tariff – the government needs to establish new mechanisms, especially at the sub-national level with both mechanisms for tax collectors and taxpayers by offering incentives and implementing effective and transparent law enforcements.
Tax revenue is the government’s main source of revenue, said Cambodia Chamber of Commerce vice-president Lim Heng, noting that Cambodia’s procedures and tax revenue collection are progressing smoothly.
“Because Cambodia’s economy is progressing well, the tax revenue would be more. Participation in the implementation of tax obligations in Cambodia is on a good path,” he said.
In the first half of 2023, tax revenue reached $2.1 billion, which is 58.02 per cent of the target under the Law on Financial Management for 2023.
GDT director-general Kong Vibol said tax reform and modernisation since 2012 have strengthened Cambodia’s tax system, and that leaders and tax officials at every level have worked hard to ensure the sustainability of tax revenue growth.