Logo of Phnom Penh Post newspaper Phnom Penh Post - GDT requires tax invoice amounts shown in local riel

GDT requires tax invoice amounts shown in local riel

Content image - Phnom Penh Post
The General Department of Taxation (GDT) has ordered that all taxpayers show the total amount of their tax invoices in riel. Heng Chivoan

GDT requires tax invoice amounts shown in local riel

The General Department of Taxation (GDT) has ordered that all taxpayers show the total amount of their tax invoices in Cambodian riel. The change will come into effect on April 1.

The GDT instruction issued on Monday indicates that tax invoices are required to show total amounts in the local currency, although taxpayers can use either the riel or the US dollar as the base.

The exchange rate to be used is either the official GDT-issued exchange rate of the previous month or the market rate. However, the market rate must not be lower than the daily exchange rate of the National Bank of Cambodia.

Ros Sokhom, managing director of Rosoco Limited, a local auditing firm, on Wednesday said the GDT’s new instruction should match its e-payment platform, which allows individual and corporate taxpayers to pay their obligations online.

While all taxpayers are required to fulfil their obligation in Cambodian riel to GDT, Sokhom said most taxpayers displayed their tax invoice in US currency as they generally obtain the foreign currency for their customers.

“It will initially be difficult for taxpayers to fulfil the GDT requirement because they mostly print out invoices in US dollars, which is automatically set up by the system,” he said.

He said it is not a major issue because taxpayers will try to adjust their accounting systems, but they will need some time to familiarise themselves with the new change.

“By showing tax invoices in Cambodian riel, taxpayers might encourage their customers to pay in riel and that will eventually help to accelerate the use of the riel,” he said.

The GDT officially launched an e-payment platform late in 2017, allowing individual and corporate taxpayers to pay their obligations online and directly through bank accounts.

Later, it launched a separate e-filing system last year, which allow taxpayers to submit relevant documents – including tax invoices – online without needing to mail them to the tax authorities or submit them in person.

The GDT collected over $2.2 billion in total tax revenue last year – up 13 per cent from that raised in 2017.

Cambodia Chamber of Commerce vice-president Lim Heng said there is an increasing trend of riel consumption in the economy, thanks to government tax reforms which require taxpayers to fulfil their obligations in the local currency.

While the new requirement is put in force by the GDT, Heng expressed his optimism that people will pay more attention to riel use as the value of the Cambodian currency firmly maintains stability.

“It will be difficult at first when people are forced to adapt to the new system, but Cambodians should realise that it is their obligation to use the local currency. I have seen an emerging trend of activity related to national patriotism on Facebook among youth."

“They are actively supporting the country, so I believe that if they are asked to use riel to pay for goods, they will show their support and will be happy to do so.”

MOST VIEWED

  • Hun Sen: Full country reopening to be decided in two weeks

    Prime Minister Hun Sen has announced that if the Covid-19 situation remains stable for 15 consecutive days from the end of the October 5-7 Pchum Ben public holiday, Cambodia will reopen fully, albeit in the context of Covid-19 whereby people have to adjust their lives to

  • Cambodia unveils new quarantine regulations

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Cambodia sets new Covid-19 quarantine rules

    The government has modified Covid-19 quarantine requirements, shortening the duration for, among others, Cambodian officials, foreign diplomats and delegations, investors and inbound travellers in general. According to an official notice signed by Minister of Health Mam Bun Heng late on October 16, quarantine length for Cambodian

  • Hun Sen: Cambodia set to fully reopen

    Prime Minister Hun Sen concludes that the October 5-7 Pchum Ben public holiday, during which many people either flocked to their hometowns for family reunion or gathered at tourist attractions across the country, has not caused an outbreak of Covid-19. In a special address to

  • Will Evergrande change the way Chinese developers do business in Cambodia?

    China’s property sector policy has exposed the grim financial condition of real estate developers including those operating in Cambodia, which raises questions over the viability of their projects and business going forward The dark blue netting draping over one of Yuetai Group Co Ltd’

  • Cambodia voted ‘world’s friendliest country’ in Rough Guides reader poll

    Cambodia ranked number one among the “World’s Friendliest Countries”, according to a reader poll conducted by London-based international website “Rough Guides”. Taking submissions through Twitter and Facebook, “Rough Guides”, a well-known travel agency and publisher of guidebooks, said the Kingdom “was by far the