Logo of Phnom Penh Post newspaper Phnom Penh Post - Gov’t seeks standardised tax reports

Gov’t seeks standardised tax reports

Workers bundle packaged goods into plastic bags at the LYLY Food Industry Company factory
Workers bundle packaged goods into plastic bags at the LYLY Food Industry Company factory in Phnom Penh last year. The Ministry of Economy and Finance has announced it will simplify accounting forms to encourage small- and medium-size enterprises to file accounting forms. Vireak Mai

Gov’t seeks standardised tax reports

The Ministry of Economy and Finance says it is preparing simplified and standardised accounting procedures, targeted specifically at strengthening the books of small- and medium-size Cambodian businesses, although the release date has not been specified.

The ministry is developing new forms that are intended to make bookkeeping more stream-lined for small businesses, improve tax collection efforts for the government and make it easier for lending institutions to evaluate loans.

Ngy Tayi, secretary of state at the ministry and head of the National Accounting Council, said that while Cambodia has had accounting standards for about a decade, few small businesses actually fill out the current forms.

Tayi said that owners will only need up to six months informal training to be able to fill out the new reports.

“It is a key part of developing the Cambodian economy, because small and medium enterprises share a large percentage of the country’s accelerating economic growth,” he said, adding that SMEs will be able to save money on accounting services.

“It will be easier for them to declare their taxes to the government and access loans from any banks.”

According to the 2011 Cambodian Economic Census, Cambodia has more than 500,000 SMEs operating in the country, a figure that represents 99 per cent of all businesses and an estimated 1.67 million jobs.

Many Cambodian SME owners still record their income and expenses in handwritten notebooks making it difficult for them to accurately gauge the competition, said Ly Visal, office manager of Federation of the Associations for Small and Medium Enterprises of Cambodia (FASMEC).

“We welcome this simpler form and I hope it will help our SME sector develop faster,” he said.

CEO of Acleda Bank In Channy concurred, saying the simpler forms would make it easier for Cambodia to reach international accounting standards.

“Once they have clear reports, it will be easier for businesses to find investment partners or shareholders and also create easier access to loans from banks or other financial institutions.”

Nevertheless, the proposed streamlined forms have no clear release date, with the ministry’s Ngy Tayi stating that they may be available sometime next year. Like the previous forms, they will not be compulsory.

Piseth Kunnavuth, the marketing manager for a small noodle company in Phnom Penh, said his enterprise currently had their own way of doing accounting.

“I’ve heard of the accounting standards but have not really looked into it,” he said.

“But if the ministry sets up these new forms, I welcome it, and we will use them if is compulsory for every SME in Cambodia.”

Additional Reporting by Chan Muyhong

MOST VIEWED

  • US imposes sanctions on Oknha Pheap and Kun Kim

    The Ministry of Foreign Affairs and International Cooperation expressed strong dismay on Monday over the designation of Cambodian tycoon Oknha Try Pheap and General Kun Kim under the US’ Global Magnitsky Act. “It is very disturbing when the public figures of a country become the

  • Mother, daughter killed in hotel fire

    The bodies of a mother and daughter were found locked in an embrace after they were killed in a hotel fire in Phnom Penh at around 3:30am on Wednesday at the Phkar Chhouk Tep 2 Hotel and Restaurant in Phsar Doeum Kor commune, in the capital’

  • EBA withdrawal a destruction of EU achievements, PM says

    Prime Minister Hun Sen said the EU’s possible suspension of its Everything But Arms (EBA) agreement amounted to a destruction of its achievements in the Kingdom and the demise of the opposition group. Hun Sen made the remarks while addressing more than 6,700 students during

  • US told to refrain from interfering in Sokha case

    Senior Cambodian officials said on Thursday that the US can monitor Kem Sokha’s trial as it wishes but would not be allowed to interfere in court procedures. The point was made in response to US Secretary of State Mike Pompeo’s comments on Wednesday

  • Europe expected to consider EBA efforts, impact

    The government said it expects the European Commission to consider its efforts to comply with the “Everything But Arms” (EBA) regulations and the impact on one million workers should access to the agreement be suspended in February. The Ministry of Foreign Affairs and International Cooperation

  • Sri Lanka’s LOLC Holdings plans to sell Cambodian unit

    LOLC Holdings Plc, Sri Lanka’s second-largest publicly traded company by revenue, plans to sell its 70 per cent stake in Prasac Microfinance Institution Ltd, which also counts Hong Kong’s Bank of East Asia Ltd. as a shareholder, LOLC deputy chairman Ishara Nanayakkara said. Nanayakkara