2020 23 March

Cambodia Tax Update: Important Update on Annual and Monthly Tax Filing

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Instruction 7705 issued by the General Department of Taxation (“GDT“) on the 19th of March 2020 (“Instruction 7705″) provides important information relating to the procedures on how taxpayers may scan and deliver their annual and monthly tax returns from February 2020 through to June 2020 through the GDT’s e-Tax service.
 
Instruction 7705 is being implemented by the GDT as a measure to help prevent the spread of COVID-19 by allowing taxpayers to scan and deliver their monthly and annual tax returns through the GDT’s e-tax service rather then having to physically go to a GDT office to submit the returns.
 
All taxpayers who wish to file their 2019 tax on income tax and monthly tax returns from February to June 2020 may deliver their tax returns by simply scanning the tax returns and other related documents and upload the scanned documents to the GDT. To upload these documents, taxpayers will need to access the GDT’s e-Tax Service according to the following procedure:

Registration

To use the GDT e-Tax Service, any user who has not yet registered should register by accessing www.tax.gov.kh and completing the following:

  • The identity of the user
  • Contact number
  • Contact email

The user will receive a Username and Password via the email or telephone number provided when registering.of the enterprise owner or user when the required information as mentioned above has been fully filled out.

Detailed procedure for the scanning and delivery of tax returns

Step 1
The taxpayer needs to complete the 2019 annual tax on income return and/or the monthly tax returns.
       
For the filing of monthly tax returns the taxpayer needs to complete the monthly tax returns by attaching the report on the use of VAT credit by using online request for refund or VAT credit for VAT management (Online-VAT Refund and VAT Credit) in accordance with Instruction No. 001 MEF, dated January 9, 2019, of the Ministry of Economy and Finance. 
 
Step 2
Make full payment of the tax amount declared at any approved bank which has a MOU with the Ministry of Economy and Finance or by using the E-Payment system of the GDT.
 
Step 3
Access www.tax.gov.kh and enter the Username and Password.
 
Step 4
Then, enter the following information:

  • Tax identification number (VAT TIN)
  • Contact number
  • Contact email   

Step 5
Scan the completed tax returns, tax payment receipt and other relevant documents, and then upload them in the GDT system.
 
Step 6
After completing the above steps the taxpayer will receive an email confirming the receipt of 2019 income tax returns and monthly tax returns from the GDT.
 
After receiving the above email from the GDT, the taxpayer shall be considered to have completed the filing of the tax returns.
 
All taxpayers are required to retain the original version of their 2019 income tax returns or monthly tax returns and deliver them to the GDT no later than 3 months following the submission on the e-Taxation service.
 
To learn more about the above procedure, all users can call the Call Center 1277 or go to GDT Live Chat that can be downloaded from App Store for iOS or Play Store for Android.
 
Instruction 7705 comes into effect from the 19th of March 2020 until June 2020. From June 2020 onwards, taxpayers shall comply with Instruction No. 003 MEF, dated February 27, 2020, of the Ministry of Economy and Finance on the introduction of the E-filing system and new monthly tax returns template for taxpayers.
 
The DFDL tax team as always stand ready to answer any questions that you may have on this and other tax issues of concern.

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.


Contacts

Clint O’Connell

Partner, Cambodia Deputy Managing Director & Head of the Cambodia Tax Practice

clint.oconnell@dfdl.com

Sokheng Say

Partner & Head of Regional Accounting Advisory Practice Group

sokheng.say@dfdl.com

Borapyn Py

Partner & Deputy Head of Cambodia Tax Practice

borapyn.py@dfdl.com


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