Sector: Taxation

July 29, 2021

The Royal Government of Cambodia (“RGC”) has taken a number of actions to promote foreign investment in Cambodia, notably among them is amending the Law on Investment (“LOI”). The amended LOI has gone through several drafts and is now under review by the National Assembly and the Senate – the last step before it can […]

July 28, 2021

The Internal Revenue Department issued Public Ruling 1/2021 (“PR 1/2021”) on 17 June 2021, clarifying the definition of the right to use with regard to licenses, trademarks, and patent rights that fall under the payment category of royalties. The term “right to use” means: Using or the right to use any patent rights of literature, […]

July 25, 2021

The Ministry of Information and Communications has launched a campaign to promote digital transformation using cloud computing with the participation of 11 local service providers. Experts say digital transformation will help Vietnamese enterprises, especially small and medium-sized ones, adopt a more flexible and cost-effective business model in the post-coronavirus recovery period. One of the pillars […]

June 29, 2021

The Internal Revenue Department (“IRD”) has been implementing an online tax payment system since 2018; all taxpayers can process online tax payments using a Tax Identification Number (“TIN”), which is the same as a Company Registration Number with nine digits. There are three advance tax payment options accepted by the IRD – (i) tax payments […]

June 22, 2021

The State Administration Council enacted Law No. 20/2021 on Amending the Union Tax Law 2020 (“Amended UTL 2020”) on 17 June 2021 to reduce the tax amnesty rates on undisclosed income for the last quarter of financial year (“FY”) 2020-2021. The law takes effect on 1 July 2021 and will be valid until the end […]

May 25, 2021

In order to reduce and relieve the economic impact from the second wave of the COVID-19 pandemic in the Lao PDR, the Prime Minister’s Office has issued Notice No. 532/PMO dated 20 May 2021 (the “Notice”) specifying policies for further implementation by the relevant governmental authorities. 1. Tax policies Exemption from personal income tax for […]

May 20, 2021

Highlights of this note Some pitfalls in registering an offshore sale of shares in a Cambodian company Frequent disputes on the 0.1% stamp duty for share transfers in Cambodia Uncertainties about future capital gains tax on the transfer of shares in a Cambodian company Registering a sale and purchase of shares in a Myanmar company […]

May 14, 2021

On 10 May 2021, the Division of Health of Vientiane Capital (“DH.VTE”) issued Notice No. 378/DH (the “Notice”) requiring that those wishing to travel in and out of Vientiane Capital must apply for a permit from the COVID-19 Taskforce Committee to travel during the lockdown period up to 20 May 2021, or a further lockdown […]

April 20, 2021

On the night of 14 April, the Cambodian Government ordered a number of restrictions in response to the recent rise in COVID-19 infections by means of Decision nr. 49 SR dated 14 April 2021 (“Decision 49“). The regulation was follow up by an amendment providing some additional details by Decision nr. 50 dated 17 April […]

April 17, 2021

The Cambodian tax authority, the General Department of Taxation (“GDT”), has instituted an extension for all monthly tax returns normally due on 25 April.  These are the Prepayment of Profit Tax, the Value Added Tax, the Tax on Salary and the Withholding Tax. The extension comes amid city wide lock downs of Phnom Penh and […]

April 15, 2021

In accordance with the recent Government directed business closures and stay-at-home orders, we would like to inform you as follows: VDB Loi in Phnom Penh will continue to operate, with the help of our cloud technology, through online processes and work-from-home.  Tax filings and government filings will continue insofar these are possible by distance/online. Tax […]

March 30, 2021

With the current drastic increase in the number of COVID-19 infections in Cambodia and to help prevent the spread of contagious diseases, the Royal Government of the Kingdom of Cambodia enacted the Law on Measures to Prevent COVID-19 and Other Fatal and Harmful Diseases on 11 March 2021 (the “COVID Law”) and Sub-Decree No. 37 […]

March 11, 2021

The deadline for the final annual profit tax payment is fast approaching, are you ready? Are you aware of the new 50% penalty on final annual profit tax payments that are in excess of 10% of the total prepaid profit tax? What should you do to minimize the risk of penalties on the excess? The […]

March 9, 2021

Are you ready for your annual personal income tax audit, due by 31 March 2021? Did you know you need to register for a taxpayer identification number? Do you know if you’re eligible for a family support allowance deduction? On the same day Instruction No. 0819/MoF Implementing the Income Tax Law dated 10 February 2021 […]

March 5, 2021

The Union Parliament (“Pyidaungsu Hluttaw”), represented by the Committee Representing Pyidaungsu Hluttaw (“CRPH”), enacted the Law Amending Union Tax Law 2020 on 3 March 2021, which postpones tax collections and assessments until 30 September 2021. The CRPH was formed by the elected parliamentarians on 5 February 2021. All types of taxes and levies, including Income […]

February 18, 2021

On 10 February 2021, the Minister of Finance issued Instruction No. 0819/MoF (the “Instruction”) to implement the Income Tax Law No. 67/NA dated 18 June 2019. There are a number of interesting developments; we highlight below some of the key points.  Profit tax Per the Taxation Administration Law No. 66/NA dated 17 June 2019, profit […]

January 26, 2021

On 29 January 2020, the Ministry of Economy and Finance issued Prakas No. 098 MEF.PrK on Tax on Income (“Prakas 098”), which made several changes to the previous Tax on Income (“TOI”) Prakas No. 1059 MEF.PrK.TD that will affect the preparation of TOI returns from the year 2020 onwards. We highlight below some of the […]

December 4, 2020

Clients have been often raising queries relating to the process and actions required to arrange for a travel to Myanmar by an expatriate employee. There are many cases when people have been outside of Myanmar since the beginning of 2020. For many, their previously issued Myanmar visas are about to expire. Although modern technology allows […]

November 29, 2020

In response to several COVID incidents linked to international travel and foreign diplomats, the Cambodian Ministry of Health is sharpening the measures applicable to most international travelers arriving in the country.

October 30, 2020

The Withholding Tax (“WHT”) regime is a mechanism to tax a non-resident for income derived from Myanmar. In the past, the definition of income derived from Myanmar included services performed both outside and inside Myanmar for Myanmar projects. Under Notification 47/2018, the Internal Revenue Department (“IRD”) has subsequently narrowed the interpretation to capture only services […]