Double taxation accord set to be implemented
The double taxation agreement between Cambodia and three other countries has come into effect and will be implemented from January 1 next year, a General Department of Taxation (GDT) press release said.
According to the GDT, Cambodia and China signed the deal in 2016 in order to avoid double taxation and prevent evasion of income tax.
The Kingdom also signed another two such agreements with Brunei last year and with Vietnam this year, according to the release.
The agreements will grant protection to nationals of both countries from dual taxation and will boost foreign direct investment and trade between the countries.
Bilateral trade between Cambodia and Vietnam reached record highs this year with a trading volume amounting to $3.06 billion during the first 10 months of 2018, an increase of 36 per cent from the same period last year.
Trade figures from the General Department of Vietnam Customs for the January-October period this year revealed that among the total $3.06 billion in bilateral trade, Vietnam’s exports to Cambodia accounted for $2.25 billion, or 73 per cent of the total two-way trade.
NBC’s report shows that the bilateral trade between Cambodia and China was worth $6.06 billion last year. Cambodia imported $5.3 billion from China, while the volume of Cambodian exports to the country reached $758 million.
Cambodia Chamber of Commerce director-general Nguon Meng Tech said the agreement is a good deal to promote the Kingdom’s economic growth.
“Tax payment will not be a burden for investors anymore, so investors will be happier to come to invest in the region … All the countries in the region will receive benefit from this agreement,” he said.
The Kingdom’s tax department is currently negotiating double taxation agreements with other countries, including Singapore, Thailand, Malaysia, the Philippines, South Korea and Japan.