Logo of Phnom Penh Post newspaper Phnom Penh Post - DTA boosts Thai border trade

DTA boosts Thai border trade

Content image - Phnom Penh Post
The office of the Poipet International Border Checkpoint with Thailand. FACEBOOK

DTA boosts Thai border trade

Cambodia and Thailand have stepped up trans-border investment to underpin economic activity between them, as both countries roll back entry restrictions following improvements in Covid-19 metrics, and while benefiting from provisions of a bilateral double tax avoidance agreement (DTA).

The foreign and finance ministries, in collaboration with the former’s Thai counterpart, organised a seminar on June 13 on how to leverage the DTA to spur cross-border investment between Cambodia and Thailand, attended by representatives of both countries’ tax authorities and private sectors.

The event sought to inform private sector actors about the process of applying for DTA benefits, and gather opinions and proposals from stakeholders on this and other double taxation matters.

Cambodian ambassador to Thailand Ouk Sorphorn, who attended the event, noted that the DTA came into force in 2018, with the aim of increasing trade benefits and reducing investment barriers.

Implementation of the DTA has gone well overall, he told The Post on June 13, saying that Cambodia was keen to cooperate with Thailand to ensure the smooth operation of the agreement and associated activities, as well as learn more from its neighbour’s ample experience in the area, drawn from its work involving “more than 60” similar treaties with other countries.

In spite of that, a lack of understanding amongst investors, especially new players, is one of the main obstacles to profiting from the DTA, he said, adding that the seminar highlighted a number of challenges and essential relevant information.

Thai foreign ministry director-general for East Asian Affairs Arjaree Sriratanaban, who also took part in the event, noted that Thai investors are investing “heavily” in the Cambodian logistics and financial sectors, a trend she said reflects the closer economic ties between the two countries.

She called on all public and private stakeholders of both countries to work together more closely to facilitate bilateral trade and investment, and hence drive increases in investment value.

These concerted efforts will support post-Covid-19 economic recovery in both countries and reinforce bilateral economic ties to better cope with world economic changes and challenges brought on by the current international environment, she said.

Arjaree voiced hope that the information, advice and guidance provided by tax authorities and private sector actors at the event would lead to improvements in the use of the DTA benefits and refinements in the process to apply for and obtain them, making procedures more convenient and smooth.

Cambodia Chamber of Commerce (CCC) vice-president Lim Heng, who did not attend the event, commented that DTAs are crucial for investors, especially with Cambodia’s major trading partners.

Heng affirmed that mutual investment between Cambodia and Thailand had risen in tandem with the easing of Covid-era entry restrictions, and described DTAs as magnets for investment.

As an example, he said that with the treaty in effect, investors wanting to send profits back to their country of origin must pay just 10 per cent in taxes and other charges, as opposed to 14 per cent otherwise.


  • South Korea’s first lady brings hope to ill boy

    South Korea’s first lady Kim Keon-hee – wife of current president of the Republic of Korea, Yoon Suk Yeol – met with a 14-year-boy with congenital heart disease during her trip to the Kingdom for the ASEAN Summit. After their meeting it was announced that the

  • Hun Sen gets Covid, shuns G20, APEC summits

    Prime Minister Hun Sen said he has tested positive for Covid-19 in Indonesia, where he is slated to attend the G20 summit in his capacity of the ASEAN chair. In a social media post addressing the Cambodian public, he said: “Before leaving Cambodia, I always

  • 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

  • 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

  • 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

  • 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