Gold certificate taxpayers to get service of special auditors
Gold certificate taxpayers to get service of special auditors
Speaking to Khmer Times, Director General of GDT Kong Vibol said that currently there are over 300 gold certificate holders and the GDT expects more businesses to join this elite club
Taxpayers having gold certificates will soon have the privilege of service by a special auditing unit of the General Department of Taxation (GDT), according to its Director General Kong Vibol on Wednesday.
While addressing the Tax Forum 2024, jointly organised by the American Chamber of Commerce (AmCham) and the European Chamber of Commerce (EuroCham), at Sofitel Phnom Penh Phokeethra, Vibol encouraged members of both organisations to apply for gold certificates.
For gold certificates, they will need to score high in the GDT’s point system through high tax compliance and by implementing foolproof internal auditing systems in their businesses.
According to Vibol, 44 highly qualified tax officials have been selected for this special auditing unit. He said that GDT is interested in recruiting more highly competitive tax professionals from the private sector as well.
The Director General said that the Royal Government has also extended the fiscal stimulus for businesses that includes several tax incentives for one more year and also the tax amnesty scheme until June next year.
The amnesty scheme is intended for those who submitted wrong accounts and also under-declared their tax liabilities. They would have time until June 2025 to submit the correct tax reports without any penalty.
Later while speaking with Khmer Times on the sidelines of the forum, Vibol said that there are over 300 gold certificate holders currently and the GDT expects more businesses to join this elite club.
Meanwhile, the Director General also spoke at length about the initiatives taken by the GDT to modernise the taxation system in the country.
Vibol said that the new Standard Operating Procedure (SOP) being implemented by the GDT has provided transparency and predictability to the taxation system. GDT is also in the process of adopting the possibilities offered by emerging artificial intelligence (AI) and blockchain technologies.
AI could be a one-stop solution for all issues raised by taxpayers and could guide them even through e-filing. Vibol hoped that by next year GDT could implement AI technology and in the near future the blockchain technology.
According to him, GDT has always followed the path of dialogue with the private sector. “This is crucial for the redressal of complaints. Since October 2023, as many as 59 important issues raised by the private sector were settled showing the success of this collaboration,” the Director General said.
“We also encourage voluntary compliance and not forced compliance,” he noted.
In his opening remarks at the forum, Casey Barnett, President of AmCham, said that a survey participated by AmCham members and American businesses in Cambodia revealed that among the business challenges they listed ‘Uncertainty regarding interpretation and enforcement of laws’ was cited as the biggest issue in the country.
But in the ‘Cambodia Outlook For American and AmCham Member Businesses,’ 65 percent of businesses said they would increase their investments in the country in the next 12 months and 73 percent said they would hire more staff.
Again, 73 percent expected that they would increase their income in 2024, compared to 2023.
In his opening remarks, Tassilo Brinzer, President of EuroCham said that simplification of taxation rules and legislation have contributed to a positive perception of the country’s investment and business landscape.
Brinzer said that EuroCham is also looking forward to attracting more quality investment and business to Cambodia. He commended the readiness of GDT for open dialogue with the private sector.
Anthony Galliano, AmCham Vice President and CEO of Cambodian Investment Management Group, described the tax forum as a milestone achievement that promotes the solidarity of the private and public sectors to work harmoniously to transform the Kingdom into a top investment destination and a highly competitive market.
During the panel discussion, Anthony sought a reduction in deemed reassessments if the evidence strongly supports the taxpayers’ declarations, an independent arbitration process if an audit remains unresolved and at an impasse for an extended period, and also the elimination of commissions for auditors.
He, however, noted that there has been substantial progress by the GDT in improving the audit process. This continuous improvement in the tax system and positive engagement with the private sector will position Cambodia as an attractive and preferred investment destination, Anthony said.
