The General Department of Taxation (GDT) said Chinese investment is contributing greatly to the Kingdom’s tax revenue and called on Chinese companies to properly fulfil their tax obligations.
Speaking at a forum on Mechanism of Cambodia-China Fiscal Cooperation on Friday, GDT director-general Kong Vibol said: “The additional Chinese investment has contributed significantly to the growth of tax revenue and the successful implementation of the government’s Medium-Term Revenue Mobilisation Strategy 2014-2018 and the continued implementation of its 2019-2023 strategy.”
He said the participation of the Chinese Chamber of Commerce in Cambodia is necessary to ensure effective tax revenue collection.
Chinese Chamber of Commerce in Cambodia representatives also expressed their willingness to work with the government to strengthen Chinese investors’ fulfilment of fiscal obligations in the Kingdom.
The GDT collected more than $1.73 billion in the first seven months of this year – a 28.08 per cent increase year-on-year.
For five straight years between 2013 and 2017, China has been Cambodia’s largest foreign direct investor, with investment capital of $5.3 billion, or about $1 billion annually, according to figures from the Cambodia Investment Board at the Council for the Development of Cambodia.
Between 2017 and last year, Chinese investment in Cambodia doubled in value to $3.3 billion.
Speaking at the Cambodia-China Business Forum on Friday, Ministry of Commerce secretary of state Sam Sereirath called on Chinese businesses to invest more in the Kingdom.
“Cambodia is an open country, rich in young labour and has the best investment protection. You will get high returns on investments in agriculture, industry, technology and health, because of all of these sectors are government priorities,” he said.
Trade volume between the two countries reached $6.4 billion last year, up more than 15 per cent from 2017.
Affiliated Network for Social Accountability director San Chey said promoting anti-corruption measures is necessary to improve efficiency in tax revenue collection.
“Any negligence or shortcoming in technology or anything else when it comes to tax collections will undermine the national budget as a whole.
“I think that the government can compel all companies to obey the law . . . it is not difficult,” he said.
Cambodia Chamber of Commerce vice-president Lim Heng welcomed the move, saying: “This is a call for all foreign companies and enterprises, especially those from China, to properly pay their taxes to increase national income for the country’s development.”