Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia-Myanmar double taxation deal on the horizon

Cambodia-Myanmar double taxation deal on the horizon

Content image - Phnom Penh Post
Cambodia’s General Department of Taxation under the Ministry of Economy and Finance and Myanmar’s Department of Internal Revenue held a meeting to negotiate an agreement on the first round of DTA discussion between August 22 and 25 in Phnom Penh. Hong Menea

Cambodia-Myanmar double taxation deal on the horizon

Cambodia and Myanmar are nearing agreement on the draft Double Tax Agreement (DTA) to increase investment and strengthen both countries’ economies, as trade between two countries is still small.

Cambodia’s General Department of Taxation under the Ministry of Economy and Finance and Myanmar’s Department of Internal Revenue held a meeting to negotiate an agreement on the first round of DTA discussion between August 22 and 25 in Phnom Penh.

The meeting discussed in detail all the articles in the draft agreement and agreed on most of them, save for a few which require further negotiation.

Cambodia Chamber of Commerce vice-president Lim Heng said the DTA is very important for investors, especially with the Kingdom’s large trading partners.

“Under this agreement, investors who want to repatriate their profits to their country only have pay 10 per cent tax. [Without the agreement], they have to pay withholding tax of up to 14 per cent. So, when Cambodia has DTA agreements with more countries, it will be able to attract more investment,” he said.

At the same time, Cambodia and Myanmar are speeding up discussions on two draft agreements to increase trade cooperation, with a meeting between representatives of the Cambodian Ministry of Commerce and the Ministry of Investment and Foreign Economic Relations in Indonesia on May 18.

Minister of Commerce of Cambodia Pan Sorasak recently called on both sides to further discuss economic and trade progress in the regional and bilateral framework with the aim of boosting trade volume and promoting economic recovery.

Bilateral trade volume between Cambodia and Myanmar “in the three years prior to the Covid-19 crisis” totalled just $20 million. However, that figure in 2020 was more than $28 million, slightly lower than 2019.

MOST VIEWED

  • Hong Kong firm done buying Coke Cambodia

    Swire Coca-Cola Ltd, a wholly-owned subsidiary of Hong Kong-listed Swire Pacific Ltd, on November 25 announced that it had completed the acquisition of The Coca-Cola Co’s bottling business in Cambodia, as part of its ambitions to expand into the Southeast Asian market. Swire Coca-Cola affirmed

  • Moody’s sets outlook rating to ‘negative’ for Cambodia

    US global rating agency Moody’s Investors Service Inc on November 15 announced that it downgraded Cambodia’s outlook from “stable” to “negative” and maintained its B2 local and foreign currency issuer ratings. “The negative outlook reflects a deteriorating external position as illustrated by the severe

  • Korean first lady paves way for ill boy’s surgery

    A 14-year-old boy with congenital heart disease who was lucky enough to meet with South Korean first lady Kim Keon-hee may get the chance of a lifetime and receive surgery and treatment at Asan Medical Center in Seoul, South Korea. After seeing his plight, many

  • NagaWorld union leader arrested at airport after Australia trip

    Chhim Sithar, head of the Labour Rights Supported Union of Khmer Employees at NagaWorld integrated casino resort, was arrested on November 26 at Phnom Penh International Airport and placed in pre-trial detention after returning from a 12-day trip to Australia. Phnom Penh Municipal Court Investigating Judge

  • Hun Sen’s Covid infection caused by ‘weakened antibody’ after summit

    Prime Minister Hun Sen said exhaustion from heavy workload before and during the recent ASEAN Summit may have led to him contracting Covid-19 due to his weakened immune system, while rejecting speculations that the infection was caused by leaders of some countries who did not

  • Kingdom’s rice crowned world’s No1

    Cambodia’s Phka Rumduol jasmine variety has been crowned the World’s Best Rice for the fifth time at the TRT (The Rice Trader) World Rice Conference in Phuket, Thailand on November 17, according to leaders of the Kingdom’s apex rice industry body. Phka Rumduol