Logo of Phnom Penh Post newspaper Phnom Penh Post - Lukewarm response to Russian tax proposal

Lukewarm response to Russian tax proposal

Lukewarm response to Russian tax proposal

A Russian diplomat has urged the Cambodian government to sign a double taxation treaty, but local officials say it is low on their list of priorities.

Chheang Vun, chairman of the Cambodian National Assembly’s Commission for Foreign Affairs and International Cooperation, said Russian Ambassador Dmitry Tsvetkov proposed the tax convention during a meeting on May 10.

He said that while the proposal had been tabled and was open for consideration, Cambodia was keen to sign double taxation agreements with ASEAN partners first before looking further afield.

“We have been pursuing this type of agreement with some countries in ASEAN,” he said yesterday.

“We need to deal with countries inside our community first, before we look at countries that already have investment agreements with Cambodia, such as Russia, China, South Korea and India.”

However, Vun said the Cambodian government recognises the advantages a double taxation agreement could provide.

Pointing to a mutual investment protection treaty that Cambodia and Russia inked last December, he said a double taxation treaty would extend assurances offered to investors from both countries by ensuring that they are not taxed twice.

A double taxation treaty “would attract more capital inflows to our country as well as provide capital protections”, he said, adding that the Cambodian government supports the idea but needs to ensure it complies with international standards.

Joseph Lovell, managing partner at law firm BNG Legal, explained that double taxation agreements can build investor confidence and protect business interests.

“If I were a Russian doing business in Cambodia, I would hope to get at least a partial tax credit from my [home] country,” he said. “But without a legal agreement or treaty, it would be hard to be sure that I wouldn’t be taxed twice.”

He added that if any double taxation agreements are signed, it would benefit Cambodia’s overall tax collection.

Late last month, state news agency AKP reported that Cambodia had finalised an agreement on double taxation with Singapore – the first for the Kingdom.

Additional reporting by Kali Kotoski

MOST VIEWED

  • 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

  • S’ville set to turn into ‘second Shenzhen’

    The Ministry of Economy and Finance has awarded a master plan consultancy contract to top Chinese institute for the development and transformation of Preah Sihanouk province into a “Model Multi-Purpose Special Economic Zone”, Southeast Asia’s next logistics and resort hub and innovation centre. The