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.

MOST VIEWED

  • Prince Norodom Ranariddh passes away at 77

    Prince Norodom Ranariddh, the second son of the late King Father Norodom Sihanouk and former First Prime Minister of Cambodia, has passed away in France at the age of 77. “Samdech Krom Preah Norodom Ranariddh has passed away this morning in France just after 9am Paris-time,”

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • Rise in planned flights lifts travel hopes

    Six airlines have applied to resume flights in December, while two others have put in for additional flights and routes, according to State Secretariat of Civil Aviation (SSCA) head Mao Havannall on November 29. These account for 43 new weekly domestic and international flights in December, up 16

  • PM: Do not defile Tonle Sap swamp forest or else

    Prime Minister Hun Sen ordered police to arrest anyone – including government officials – involved with the deforestation of the flooded forests surrounding the Tonle Sap Lake because it is an area important to the spawning of many species of fish, among other reasons. Speaking in a