The General Department of Taxation (“GDT”) issued Instruction no. 1972 GDT on 31 January 2022 (“Instruction 1972”) which sets out obligations for taxpayers in Cambodia that carry out projects for public interest in connection with a grant or loan agreement (“Agreement”) or memorandum of understanding (“MoU”) between the Royal Government of Cambodia and another government or national development agency or partner international organisations.
Instruction 1972 provides that the relevant Cambodian ministry or institution that receives the financing or manages the project, or the agencies, or organizations, or enterprises that implement the projects under the framework of an Agreement or MoU are obliged to provide to the GDT a written notice with respect to any tax incentive that may be provided to the project. Under Instruction 1972 the GDT will review, record and acknowledge the tax incentives provided.
When submitting the written notice to the GDT the relevant ministry/institution, agency, organization or enterprise that implement the project are required to submit applicable supporting documents including but not limited to:
- Grant Agreement
- Loan Agreement
- Memorandum of Understanding
- Project or sub-project implementation agreement
- Latest Patent Certificate, VAT Certificate, annual tax return (last three years)
- Financial statements (last three years)
If the projects, as outlined above, are not reviewed, recorded and acknowledged by the GDT, the relevant ministry/institution, agency, organization or enterprise that implement the project shall fulfill their tax obligations in accordance with the law and regulations on taxation that are in force – in other words without the benefit of any tax incentive that may be provided in the Agreement or MoU.
Please contact the author or your usual DFDL advisor if you require further assistance with this update.
Tax services required to be undertaken by a licensed tax agent in Cambodia are provided by Mekong Tax Services Co., Ltd, a member of DFDL and licensed as a Cambodian tax agent under license number – TA201701018.
The information provided here is for information purposes only and is not intended to constitute legal advice. Legal advice should be obtained from qualified legal counsel for all specific situations.
