Cambodian business owners that are in debt may be eligible to apply for tax repayment in installments
Cambodian business owners that are in debt may be eligible to apply for tax repayment in installments
Business owners or enterprises that are in debt and unable to repay their total tax liability may be eligible to apply for tax repayment in installments of up to three years, according to the General Department of Taxation.
Mr. Bao Pichtirun, Deputy Director of the Department of Management of Small and Medium Taxpayers, made the statement whilst speaking to Fresh News.
He pointed out that the payment of tax debt in installments is generally limited to one month, meaning that one phase is equal to one month, and the period of payment of tax debt is allowed for a maximum of three years, with the following interest rates: 1 Interest is exempted, the second year is paid interest at the market rate calculated on average by the General Department of Taxation and the third year is paid interest at the rate of 1.5% per month.
Tax liability refers to all taxes or duties that the taxpayer has not paid according to the due date.
This tax liability also includes additional taxes and interest.
Reasons leading to tax liability are due to negligence, tax evasion or obstruction of the implementation of tax provisions.
According to Mr. Bao Pichtirun, in order to apply for the payment of tax debt in stages, the taxpayer must submit an application signed by the business owner or legal representative to the General Department of Taxation with the following documents:
– Notification letter on tax re-assessment or letter of notification on tax debt collection or letter of notification on reminder of debt collection or certificate of tax debt status
– Appropriate documents or evidence confirming the inability to pay the tax once, such as financial statements, bank statements of the enterprise and the owner of the enterprise, or other evidence that confirms the financial status of the taxpayer or to guarantee payment of tax liabilities.
– Letter issued by the Ministry of Economy and Finance or the General Department of Taxation in case of any change in tax status or tax liability, contact telephone number with specific name and role.
