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

  • Man arrested for fake PM endorsement

    The owner of currency exchange company GCG Asia Co Ltd was temporarily detained by the court yesterday for attempted fraud after Prime Minister Hun Sen reacted to the company using his name and pictures to allege his endorsement of the firm. Phnom Penh Municipal Court

  • Archeologists find ancient phallic statue

    An archeological team has found a metre-long tipless stone linga (penis) of the Hindu deity Shiva in the foundations of a temple in Kratie province’s historical Samphu Borak area, a former capital of the pre-Angkor Empire Chenla period. Thuy Chanthourn, the deputy director of

  • Sihanoukville authority orders structure dismantled

    The Preah Sihanouk provincial administration has ordered owners of two unauthorised construction sites to immediately dismantle them and warned of legal action if the owners failed to comply. Ly Chet Niyom, development management and construction bureau chief at the provincial hall, told The Post on

  • Police seek arrest of Chinese ‘gang’

    Cambodian police remain on the lookout for 20 Chinese nationals who earlier this month posted a video clip threatening to stoke insecurity in Preah Sihanouk province, though the Chinese Embassy in Phnom Penh maintained the group posed no threats to Cambodia’s national security. National Police