Cambodia VAT Rules and Regulations Quiz

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the Value Added Tax rate applied to taxable supplies in Cambodia?

15%

20%

10% (correct)

Can a tax receipt from the previous month be applied as an input tax credit in a different month?

Yes, but only for specific services.

Yes, it can be carried over to the next month.

No, it must be applied within the same month. (correct)

No, unless approved by the tax authority.

Which of the following is considered a non-taxable supply?

Professional consultancy services

Retail sale of consumer goods

Public postal services (correct)

Hotel accommodation services

Which expense type cannot be claimed as an input tax credit?

Mobile telephone expenses Signup and view all the answers

What type of income-generating activity is exempt from VAT on input tax credits for entertainment-related expenses?

Provision of entertainment services by businesses Signup and view all the answers

Which category is specifically stated as not being allowed input tax credits?

Purchases of certain petroleum products Signup and view all the answers

What can be classified as a non-taxable supply in regards to medical services?

Hospital and clinic services Signup and view all the answers

In what scenario can a purchase from small taxpayers be claimed for an input tax credit?

Only if the small taxpayer is registered for VAT. Signup and view all the answers

What is the withholding tax rate on dividends distributed to non-resident individuals?

14% Signup and view all the answers

Are small taxpayers required to deduct withholding tax on rental income from movable property?

No, but only on immovable property Signup and view all the answers

Which type of income is subject to a 10% withholding tax rate?

Income from rental of movable property Signup and view all the answers

What is the withholding tax rate for service fees paid to natural persons by enterprises producing certain agricultural products?

Exempt from withholding tax Signup and view all the answers

Interest from a non-fixed term savings account paid to a resident taxpayer is subject to which withholding tax rate?

4% Signup and view all the answers

Is the distribution of dividends to resident individuals subject to withholding tax?

No, it is not subject to withholding tax Signup and view all the answers

Which of the following is true about foreign film production companies regarding withholding tax?

They are subject to withholding tax at 14% Signup and view all the answers

What is the withholding tax obligation for security deposits?

Security deposits are not subject to withholding tax Signup and view all the answers

What is the withholding tax rate for interest payments from domestic banks to resident taxpayers with fixed term deposits?

6% Signup and view all the answers

What rate does withholding tax on payments to non-residents for Cambodian source income adhere to?

14% Signup and view all the answers

Which document is NOT required for tax registration of an association or non-governmental organization?

Memorandum and Articles of Association Signup and view all the answers

What is the size specification for the photos required for tax registration?

35 x 45 mm Signup and view all the answers

Which of the following documents is crucial for the tax registration of a private/public limited company?

Letter of Notification for tax matters Signup and view all the answers

To whom must the declaration letter of no conviction be submitted for a foreign company branch's tax registration?

Director or representative Signup and view all the answers

Which document is required only after obtaining permission for tax registration in private/public limited companies?

Bank account information certificate Signup and view all the answers

What must physical persons do if their current address differs from the one on their identification?

Provide a Family's Record or Letter of Resident Signup and view all the answers

Which of the following documents is NOT usually required for tax registration of a foreign company’s representative office?

Certificate of bank account information Signup and view all the answers

What is one condition under which locations without buildings can register for tax?

Approval by General Department of Taxation Signup and view all the answers

Which of the following documents must be completed for tax registration for associations?

Form 101-P1 Signup and view all the answers

For tax registration of private/public limited companies, which document certifies that the individual has no convictions?

Declaration letter of no conviction Signup and view all the answers

What document must be attached if the address on identification differs from the current address?

Family's Record Signup and view all the answers

Which entity issues the Certificate of Registration required for tax registration of associations?

Royal Government or Relevant Ministries Signup and view all the answers

What is the purpose of the Authorization Letter in the tax registration for a foreign company branch?

To authorize individuals for tax matters Signup and view all the answers

What document is NOT required for tax registration of a partnership company?

Ministry of Health approval letter Signup and view all the answers

Which statement accurately defines a 'Resident Taxpayer' in Cambodia?

A physical person with a primary residence in Cambodia for over 182 days Signup and view all the answers

Which type of taxpayer is liable for withholding tax in Cambodia?

Both resident and non-resident taxpayers Signup and view all the answers

What is the withholding tax rate for income received from the performance of services by a physical person?

15% Signup and view all the answers

Which of the following income types from non-resident individuals is NOT subject to withholding tax?

Insurance premiums for risks outside Cambodia Signup and view all the answers

What type of agreement must be included in the tax registration package for a partnership company?

Contract of Partnership Signup and view all the answers

According to the listed requirements, which document must be provided to show the residence of partners with different addresses?

Family's Record or Resident Record Signup and view all the answers

Which document should be provided after obtaining approval for tax registration?

Certificate of bank account information Signup and view all the answers

What is the implication for locations without buildings in relation to tax registration?

They require approval from General Department of Taxation Signup and view all the answers

What is the primary requirement listed for tax registration for Qualified Investment Projects (QIP)?

Certificate from the Cambodia Investment Board Signup and view all the answers

What is required from partners or representatives during tax registration?

Two recent photos with a specific size Signup and view all the answers

Which of the following is NOT considered a Cambodian source of income subject to withholding tax for non-resident individuals?

Income from foreign operations Signup and view all the answers

Which document is needed to verify tax registration related to property ownership?

Title deed or rental agreement of the business property Signup and view all the answers

What type of identification is acceptable for partners or representatives during tax registration?

Valid Cambodian identification card or passport Signup and view all the answers

For which of the following income types is the withholding tax collected by the resident taxpayer NOT applicable?

Gain from selling personal property Signup and view all the answers

What can small taxpayers claim concerning their purchases?

Deduction of purchases as expenses Signup and view all the answers

Are medicines provided to patients by private hospitals subject to VAT?

No, medical services are a non-taxable supply Signup and view all the answers

Can a private hospital claim a tax credit for purchasing a truck from a taxable supplier?

No, because it's a non-taxable service Signup and view all the answers

Is the sale of a vehicle by a hospital subject to VAT?

Yes, subject to VAT regardless of tax credits Signup and view all the answers

How is land treated regarding VAT when sold by a Real Estate Company?

Not subject to VAT as it is not considered a good Signup and view all the answers

How should small taxpayers calculate their monthly VAT tax returns?

Monthly income divided by 1.1 then multiplied by 20% and 10% Signup and view all the answers

What is the maximum time frame for completing tax registration?

7 to 10 business days Signup and view all the answers

Within how many days must individuals register with the General Department of Taxation after commencing economic activity?

15 working days Signup and view all the answers

What is the registration fee for large taxpayers?

1,010,000 Riels Signup and view all the answers

What is the patent tax for medium taxpayers?

600,000 Riels Signup and view all the answers

What do small taxpayers have to pay as a registration fee?

20,000 Riels Signup and view all the answers

What is the fee required for tax registration for NGOs?

400,000 Riels Signup and view all the answers

What is the patent tax for small taxpayers?

200,000 Riels Signup and view all the answers

Study Notes

Value Added Tax (VAT) Rates and Regulations

VAT rate in Cambodia is 10% on taxable supplies.
Export of goods and services rendered outside Cambodia are exempt (0%).
A tax receipt from a previous month cannot be used as an input tax credit for a different month. Enterprises must correct any undeclared invoices within the same month.

Non-Taxable Supplies

Public postal services
Hospitals, clinics and incidental dental/medical supplies services.
State-owned public transport.
Insurance services
Primary financial services
Imported personal use items exempt from customs.
Non-profit public interest activities.
Educational services
Electric power and clean water.
Unprocessed agricultural products.
Solid and liquid waste collection.

Disallowed Input Tax Credits

Entertainment, amusement, or recreation expenses (except businesses in those sectors).
Car purchase/import (except businesses in car sales/rental).
Some petroleum product purchases/imports (except businesses in related supply).
Mobile phone expenses.

Small Taxpayers and Input Tax Credits

Purchases from small taxpayers are not eligible for input tax credits but can be deducted as expenses.

VAT on Medical Supplies/Services

Medical consultation and treatment are non-taxable.
Medication provided to patients in a private hospital is also non taxable.

VAT on Enterprise Vehicle Purchases

Truck purchases by private hospitals (if not taxable supplying businesses) are not eligible for tax credits, even with valid tax invoices.

VAT on Vehicle Sales

Sales of enterprise vehicles (movable property) are subject to VAT.

VAT on Land Sales

Real estate company land sales are not taxable as land isn't considered a good.

Small Taxpayer VAT Calculation

Calculate monthly VAT payable by taking the VAT-excluded income (monthly income/1.1) * 20% * 10%.

Tax Registration Times

Tax registration/updates take 7-10 business days.
Individuals must register with the tax administration within 15 working days of starting business/receiving related permits.

Taxes and Fees for Large Taxpayers (Turnover > 10 billion riels)

Patent tax: 2,500,000 Riel
Registration fee: 400,000 Riel
Name reservation: 25,000 Riel
Business registration (partnership/sole proprietor): 1,010,000/180,000 Riel, respectively
Enterprise establishment: 120,000 Riel

Taxes and Fees for Medium Taxpayers

Patent tax: 600,000 Riels
Registration fee: 400,000 Riels
Name reservation: 25,000 Riel
Business registration (partnership/sole proprietor): 1,010,000/180,000 Riel, respectively
Enterprise establishment: 120,000 Riels

Taxes and Fees for Small Taxpayers

Patent tax: 200,000 Riels
Registration fee: 20,000 Riels
Name reservation: 25,000 Riel
Business registration (partnership/sole proprietor): 1,010,000/180,000 Riel, respectively
Enterprise establishment: 120,000 Riels

Taxes and Fees for Associations/NGOs

Registration fee: 400,000 Riels

Documents for Association/NGO Tax Registration

Registration/permit certificate
Statute/memorandum (if applicable)
Identification of head/representative
Photos (35x45mm, white background)
Property documents (title deed/rental)
Bank account information (if not a state institution).
Letter of notification regarding tax handling person.

Documents for Private/Public Limited Company Tax Registration

Registration certificate
Memorandum & Articles of Association
No conviction declaration
Director/shareholder IDs/passports
Photos of directors/representatives
Property documents (title deed/rental)
Bank account information.
Registration certificate from investment boards (if applicable)

Documents for Foreign Company Branch/Representative Office Tax Registration

Registration certificate
Parent company documents (memorandum, articles of association, registration certificate)
Authorization letter from parent company
No conviction declaration
Director/representative IDs/passports
Photos of directors/representatives
Property documents (title deed/rental)
Bank account information
Registration certificate from investment boards (if applicable).
Authorization letter for designated tax person.

Documents for Partnership Company Tax Registration

Registration certificate
Partnership contract
No conviction declaration
Partner/representative IDs/passports
Photos of partner/representatives
Property documents (title deed/rental)
Bank account information
Registration certificate from investment boards (if applicable).
Authorization letter for designated tax person

Resident/Non-Resident Taxpayer Definitions

Resident taxpayer: a person with a primary residence in Cambodia, or present for more than 182 days in a 12-month period, or a legal entity located in Cambodia.
Non-resident taxpayer: a person not meeting the resident definition.

Cambodian Source Income Subject to Withholding Tax for Non-Residents

Interest from Cambodian enterprises/institutions
Dividends from Cambodian enterprises
Services performed in Cambodia
Management/technical service compensation
Income from Cambodian property
Royalties from Cambodian intangible property
Gains from Cambodian real estate sales
Insurance premiums/reinsurance for Cambodian risks
Gains from Cambodian business property sales(permanent establishment)
Business income through Cambodian permanent establishment

Withholding Tax Rates

15% on service income (management, consulting), individual economic activity (w/o goods production, leasing etc), services like fees, commissions, transportation, repair, construction, management etc. royalties for intangibles, interests in minerals/oil/natural gas, and interest from resident businesses (excluding domestic banks/savings)
10% on rental income from movable/immovable property.
6% on interest from domestic banks for fixed-term accounts
4% on interest from domestic banks for non-fixed saving accounts
14% on Cambodian income source for non-residents

Withholding Tax on Dividend Distributions

Dividends to residents are generally exempt from withholding tax.
Dividends to non-residents are subject to a 14% withholding tax.

Withholding Tax for Service Fees in Agricultural Sector

Service payment made to individuals involved in agriculture production for domestic/export services with rice, beans, cashew etc. is exempt from withholding tax if not in self-declared tax regime.

Withholding Tax for Foreign Film Production Companies

Foreign film production companies are subject to a 14% withholding tax.

Withholding Tax for Small Taxpayers

Small taxpayers are generally exempt from withholding tax obligations, except for property rentals.

Security Deposits and Withholding Tax

Security deposits are generally not subject to withholding tax.

Studying That Suits You

Use AI to generate personalized quizzes and flashcards to suit your learning preferences.

Description

Test your knowledge on Value Added Tax (VAT) regulations in Cambodia. This quiz covers topics such as tax rates, input tax credits, non-taxable supplies, and specific exemptions related to entertainment and medical services. Perfect for accounting and tax professionals seeking to sharpen their understanding of Cambodian VAT laws.