Logo of Phnom Penh Post newspaper Phnom Penh Post - Tax deal with Indonesia reached

Tax deal with Indonesia reached

Content image - Phnom Penh Post
The General Department of Taxation (GDT) says the DTA could take effect from as early as January 1. POST STAFF

Tax deal with Indonesia reached

Cambodia and Indonesia have reached an agreement on double tax avoidance (DTA), the General Department of Taxation (GDT) said on Tuesday.

If the remaining approval procedures are completed in the course of 2020, the DTA could take effect from as early as January 1, said the GDT.

It said the agreement will protect nationals of either country from double taxation and expressed its hopes that it will boost bilateral investment.

As obliged by Article 29 of the DTA, the Indonesian government recently notified the Cambodian government that it had completed the internal procedures that are required for the entry into force, it added.

An official from the GDT’s Department of Legislation, Fiscal Policy and International Tax Cooperation, who declined to be named, told The Post that the DTA will further shore up bilateral trade.

“The agreement will facilitate investment between the two countries and will help boost Indonesian investment into Cambodia,” he said.

Cambodia Chamber of Commerce vice-president Lim Heng said the DTA was designed to prevent investors from dual taxation and will allow income tax to be paid wherever individuals or companies make a profit.

He said excessive payments in the taxpayer’s home country will be trimmed in the form of exemptions or credits.

“The agreement will benefit Indonesian operators by not having them pay double tax on profits and will also prop up bilateral trade between the two countries,” Heng said.

Bilateral trade volume between Cambodia and Indonesia peaked at more than $792 million last year, up 45.75 per cent from $543 million in 2018, data from the Ministry of Commerce show.

The Kingdom exported about $22.32 million worth of products to the Indonesian market last year, up 3.96 per cent from 2018, and imported $770 million, up 47.46 per cent.


  • Cambodia to waive quarantine requirements Nov 15, no PCR test required

    Prime Minister Hun Sen has decided to lift all quarantine requirements for fully vaccinated travellers and visitors – both Cambodians and foreign nationals – effective from November 15 onward. In a special message addressed to officials and relevant authorities on November 14, Hun Sen said this policy will enable

  • PM: No more quarantine for vaccinated travellers

    Cambodia is lifting all quarantine requirements for vaccinated inbound travellers entering Cambodia by air, waterway or land border checkpoints effective from November 15. Travellers will be required to take a rapid antigen test on arrival rather than waiting for the results of the lengthier polymerase chain

  • No payment required for travellers taking rapid Covid tests on arrival

    Ministry of Health officials said there would be no payment required for the rapid Covid-19 tests given to travellers who arrive in Cambodia from November 15 onwards after the quarantine requirement is lifted for fully vaccinated people. Health ministry spokeswoman Or Vandine told The Post on

  • General’s gun smuggling ring busted

    The Military Police sent six military officers to court on November 22 to face prosecution for possession of 105 illegal rifles and arms smuggling, while investigators say they are still hunting down additional accomplices. Sao Sokha, deputy commander of the Royal Cambodian Armed Forces and commander of

  • More Cambodians studying in US

    The number of Cambodian students studying at US colleges and universities in 2020-21 increased by 14.3 per cent over the previous year despite the Covid-19 pandemic, according to a recent US government report. The 2021 Open Doors report on International Educational Exchange showed that 848 Cambodian students studied

  • Cambodia, Thailand to discuss border reopening

    Cambodian authorities from provinces along the Cambodia-Thailand border will meet with Thai counterparts to discuss reopening border checkpoints to facilitate travel, transfer of products and cross-border trade between the two countries. Banteay Meanchey provincial deputy governor Ly Sary said on November 22 that the provincial administration