Logo of Phnom Penh Post newspaper Phnom Penh Post - Cambodia, South Korea ink agreement on tax matters

Cambodia, South Korea ink agreement on tax matters

Content image - Phnom Penh Post
Minister of Foreign Affairs Prak Sokhon (right) during a bilateral meeting with his South Korean counterpart Kang Kyung-wha in Busan. Photo supplied

Cambodia, South Korea ink agreement on tax matters

Cambodia and the Republic of Korea have reached an agreement to avoid double taxation on income and prevent tax evasion, while industry insiders said the agreement will attract more Korean investors to Cambodia.

A press release from the General Department of Taxation issued on Tuesday said the agreement was signed on Monday by Cambodian Minister of Foreign Affairs and International Cooperation Prak Sokhonn and Korean Minister of Foreign Affairs Kang Kyung-wha during the Korea-Asean Summit in Busan, South Korea.

Ministry of Commerce spokesman Penn Sovicheat said the agreement was reached to encourage Korean investors.

Cambodia Chamber of Commerce vice-president Lim Heng said the agreement would give more confidence to foreign investors as well as those from Korea. “If we have a clear agreement with each other, it will help attract more Korean investors,” he said.

Heng said Cambodia had, to date, signed similar agreements with nearly 10 countries which include the US, Canada, China, Japan, Singapore and Vietnam.

With the agreement, he said investors in Cambodia are required to pay only 14 per cent in tax. “Without the agreement, they would have to pay taxes in our country and also in Korea,” he said.

Also, Cambodia and Korea on Monday signed a joint feasibility study on the establishment of a free trade agreement (FTA) aimed at expanding bilateral trade volume and investment and tightening bilateral ties.

The government collected $2.4 billion in revenue from taxation during the first 10 months of this year – up 28.31 per cent year-on-year from $1.873 billion – a report from the General Department of Taxation (GDT) said on Monday.

Revenue in the 10-month period is equivalent to 105.06 per cent of the General Department of Taxation’s 2019 revenue collection plan. In 2018, the GDT collected about $2.2 billion in various taxes. This is equivalent to some 114 per cent of the annual plan.


  • Man Covid-19 positive after Thailand trip

    The Ministry of Health on Saturday reported the third Covid-19 case in less than two weeks, bringing the total to 125. The man, a 26-year-old from Tbong Khmum province's Tbong Khmum district, arrived at the O'Beichoan border checkpoint in Banteay Meanchey province on Thursday. He is

  • Kingdom's GDP growth to narrow -1% to -2.9%, World Bank says

    The World Bank expects further recoil on Cambodia’s gross domestic product (GDP) growth to between minus one per cent and minus 2.9 per cent for 2020 as its main growth drivers – tourism, manufacturing exports and construction – take a beating due to Covid-19, its latest economic update

  • Vietnam: Tougher sentences for child abusers

    Several National Assembly (NA) deputies in Vietnam are calling for tougher penalties to be handed down to child abusers. They hope stricter punishments will act as a strong deterrent to prevent offenders committing further offences in the future. Extreme measures such as chemical castration were

  • Central bank to shun small US banknotes

    The National Bank of Cambodia (NBC) is considering not accepting smaller denominated US dollar banknotes – $1, $2 and $5 – from banks and microfinance institutions (MFIs) which it said are flooding its stockpile as the demand for those notes is low. While some banking insiders welcomed the move as

  • PM lauded in Covid-19 fight

    World Health Organisation (WHO) director-general Tedros Adhanom Ghebreyesus sent a letter to Prime Minister Hun Sen thanking him for following the WHO’s guidance and commending Cambodia’s efforts in the fight against Covid-19. In his letter made public by the Ministry of Foreign Affairs

  • Workers return, hope for salaries

    More than 600 factory workers in the capital’s Chaom Chao commune in Por Sen Chey district returned to work after the factory’s owner promised to pay their salaries in instalments until the middle of next month. On Tuesday and Wednesday, more than 600 workers gathered