Logo of Phnom Penh Post newspaper Phnom Penh Post - Double taxation accord set to be implemented

Double taxation accord set to be implemented

Content image - Phnom Penh Post
Traffic passes in front of the General Department of Taxation office in Phnom Penh. Pha Lina

Double taxation accord set to be implemented

The double taxation agreement between Cambodia and three other countries has come into effect and will be implemented from January 1 next year, a General Department of Taxation (GDT) press release said.

According to the GDT, Cambodia and China signed the deal in 2016 in order to avoid double taxation and prevent evasion of income tax.

The Kingdom also signed another two such agreements with Brunei last year and with Vietnam this year, according to the release.

The agreements will grant protection to nationals of both countries from dual taxation and will boost foreign direct investment and trade between the countries.

Record high

Bilateral trade between Cambodia and Vietnam reached record highs this year with a trading volume amounting to $3.06 billion during the first 10 months of 2018, an increase of 36 per cent from the same period last year.

Trade figures from the General Department of Vietnam Customs for the January-October period this year revealed that among the total $3.06 billion in bilateral trade, Vietnam’s exports to Cambodia accounted for $2.25 billion, or 73 per cent of the total two-way trade.

NBC’s report shows that the bilateral trade between Cambodia and China was worth $6.06 billion last year. Cambodia imported $5.3 billion from China, while the volume of Cambodian exports to the country reached $758 million.

Cambodia Chamber of Commerce director-general Nguon Meng Tech said the agreement is a good deal to promote the Kingdom’s economic growth.

“Tax payment will not be a burden for investors anymore, so investors will be happier to come to invest in the region … All the countries in the region will receive benefit from this agreement,” he said.

The Kingdom’s tax department is currently negotiating double taxation agreements with other countries, including Singapore, Thailand, Malaysia, the Philippines, South Korea and Japan.

MOST VIEWED

  • Draft law on state of emergency pending finalisation

    Prime Minister Hun Sen will lead a top-level meeting on Tuesdays to review the draft law on imposing a state of emergency. Meantime, he has decided to close all casinos in Cambodia effective April 1. In the press conference after the National Assembly met today, Hun

  • State of emergency on table amid pandemic

    Prime Minister Hun Sen, his deputy prime ministers and legal team will meet on Tuesday to review the draft law on declaring a state of emergency, as Covid-19 cases rose to 107 in the Kingdom on Monday. Speaking at a press conference after a parliament meeting

  • Stranded passengers petition UK for help

    Some 10,521 people have signed an online petition calling on British Prime Minister Boris Johnson and relevant officials to fly nearly 200 passengers out of Cambodia. The petition is targeted at 15,000 people. Most of the passengers are British nationals, who are stranded in Cambodia after airlines cancelled

  • Covid-19 Pandemic: Force majeure and legal consequences

    Is the Covid-19 pandemic considered an event of force majeure? The World Health Organisation declared the novel coronavirus (Covid-19) outbreak a pandemic on March 11. Following this declaration, the Ministry of Health and other ministries have taken various legal and administrative measures to prevent the rapid

  • Many in limbo as tension heightens

    As the Kingdom restricts travel and prepares for a state of emergency, some foreigners in Cambodia are scrambling for a way home. Foreign embassies in Phnom Penh are making efforts to get their citizens out, but cancelled flights have become common due to the coronavirus

  • PM set to mend ties with US

    Prime Minister Hun Sen has responded to US Congressman Ted Yoho, saying he is ready to improve Cambodia-US relations, and not take up issues of disagreements which have become a barrier between the two countries’ bilateral cooperation. His response to Yoho came after the congressman