Legal and Tax Updates

Issue: No. 012P/21 – 2 February 2021

All tax payers are required to make both monthly and annual filing of tax return to tax authorities by strictly following the application procedure and deadline.

Failure to do such monthly declaration may result in penalty, interest, and additional tax as defined under the Law on Taxation.

Application Deadline

Below are application deadline as set by the General Department of Taxation (“GDT”):

Description

Based on the latest Notification No. 26892 on the replacement of E-VAT Refund System with E-Filing System dated December 7^th, 2020 of GDT, from January 2021, both medium and large taxpayer shall make tax declaration through the e-filing system of GDT whereas small taxpayer may use paper-based tax declaration. Based on existing law and regulations, monthly tax return includes mainly:

• Prepayment of Income Tax;
• Tax on Salary and Tax on Fringe Benefit;
• Witholding Tax; and
• Value Added Tax.

Faiture to make such declaration may subject to penalty, interest and additional tax as determined under article 128, 133 and 136 of Law on Taxation.

We hope that the above legal update is helpful for your investment and help you to invest more confidently.

Disclaimer

The article is merely for general information purposes. It does not constitute a legal advice on the subject matter. If you have any question or need any assistance, please feel free to contact us

	SON Sokeng, Partner, Managing Director sokeng.son@sithisak-lawoffice.com +855 12 885 870	Sokeng has more than 8 years of professional experiences in corporate, commercial, investment and capital market sector in Cambodia. He advised and assisted various companies in various legal compliance issues, major investment projects and in conducting legal due diligence for major M&A and IPO projects. He has led many legal counsel teams to advise and assist ACLEDA Bank Plc., Phnom Penh Autonomous Port and other SMEs in the process of listing and proposed listing on the Cambodia Securities Exchange (CSX).
	NOEUM Sokvichhai, Partner, Head of Corporate, Commercial and Investment Practice Group sokvichhai.noeum@sithisak-lawoffice.com +855 12 826 785	Atty. Sokvichhai has more than 6 years of experiences in labour, corporate, commercial and investment advisory in Cambodia. He actively advices and assists various businesses in commercial, tax, and labour registration, business licensing, products registration & distribution, business recapitalization & restructuring, and mergers & acquisitions transaction. He also has particular experiences in advising collective investment fund and trust business, investment incentives & qualified investment project, and labour & employment related issues. Sokvichhai also assists major business in preparing various commercial agreements. Currently, Sokvichhai is also leading Sithisak’s Investigation Team to investigate any labour related misconduct within client’s company.

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