29 Questions
What is the annual turnover range for a medium taxpayer in the agricultural sector?
KHR 1,000M to KHR 4,000M
What is the asset value range for a medium taxpayer in the industrial sector?
KHR 2,000M to KHR 4,000M
Which of the following is not considered a medium taxpayer according to the text?
National government institution
What is the annual turnover range for a large taxpayer in the service and commercial sectors?
Above KHR 6,000M
Which of the following is considered a medium taxpayer according to the text?
A foreign embassy
What is the asset value range for a large taxpayer in the industrial sector?
No asset value range is provided for large taxpayers in the industrial sector
Which of the following is NOT one of the purposes of tax revenue?
Funding private businesses
What is the highest level of tax regulation in Cambodia?
Cambodian Tax Law passed by the National Assembly
Which department was responsible for taxation in Cambodia from 1979 to 1990?
Department of Industrial Tax
What is the difference between direct and indirect taxes?
Direct taxes are collected at the source, indirect taxes are added to the cost of goods and services
Which department is responsible for collecting customs and excise duties in Cambodia?
General Department of Custom and Excise (GDCE)
When was the General Department of Taxation (GDT) established?
2008
Which type of entities fall under the category of Large Taxpayers?
Sole proprietorships, partnerships, and legal entities with assets above KHR2,000M
What is the key characteristic of Self-Assessment Taxpayers?
They determine/calculate tax payable and file tax returns independently
What is the asset threshold for industrial taxpayers to be considered as Large Taxpayers?
Above KHR4,000M
What is the responsibility of taxpayers classified as Self-Assessment Taxpayers?
Determine/calculate tax payable and file returns independently
Which entities are exempted from being Large Taxpayers in the agricultural sector?
Sole proprietorships with assets below KHR2,000M
What is the tax called when it applies to income earned?
Pay Income Tax
Which tax is imposed on the rental of immovable property?
Immovable Property Rental Tax
How often is the Unused Land Tax levied?
Annually
What is the purpose of the Withholding Tax?
To collect tax in advance on certain types of income
When is the Transfer Tax due?
Upon transfer of immovable property ownership
What is the purpose of the Prepayment of Tax on Income?
To collect tax in advance on expected income
What is the main difference between tax avoidance and tax evasion?
Tax avoidance is when taxes are reduced through legal means, while tax evasion is the willful violation of tax laws.
Which of the following is an example of an indirect tax?
VAT (Value Added Tax)
What is the definition of tax avoidance according to the OECD?
The arrangement of a taxpayer's affairs that is intended to reduce his/her tax liability.
Which of the following is an example of a direct tax?
Income Tax
What is the definition of tax evasion according to Article 226 of the Law of Taxation (LOT)?
The willful, knowing, or systematic and repeated violation of tax provisions with the intention of reducing or eliminating the tax amount required by tax provisions to be paid.
Which of the following is an example of a tax that is considered an indirect tax?
Accommodation Tax
Study Notes
Background of GDT
- The Department of Taxation was created in 1953
- The taxation system was destroyed from 1975-1979
- The Department of Industrial Tax was established from 1979-1990
- The Department of Taxation was re-established from 1990-2008
- The General Department of Taxation (GDT) was established in 2008
Definition of Tax
- Tax is the obligation of citizens to the government for public service expenses
- Taxes are compulsory contributions to state revenue, levied by the government on workers' income and business profits, or added to the cost of some goods, services, and transactions
Purpose of Tax
- Tax revenues are used for building hospitals, schools, roads, bridges, and paying salaries for soldiers, armed forces, and civil servants
- Tax revenues are also used for general expenditures, social affairs, economics, and development
- Tax revenues are used for defending borders and heritages
Tax Regulations
- Cambodian Tax Law (National Assembly)
- Royal-Decree (King)
- Sub-decree (Prime Minister)
- Prakas, Circular and Notification (Ministry of Economy and Finance)
- Circular and Notification (General Department of Taxation)
Tax Collection
- General Department of Taxation (GDT)
- General Department of Custom and Excise (GDCE)
Direct and Indirect Taxes
- Direct taxes: collected directly from physical or legal persons
- Indirect taxes: imposed on consumers of goods and services
Medium Taxpayers
- Annual turnover from KHR 1,000M to KHR 4,000M for taxpayers in the agricultural sector
- Annual turnover from KHR 1,000M to KHR 6,000M for taxpayers in the service and commercial sectors
- Annual turnover from KHR 1,600M to KHR 8,000M in the industrial sector
- Assets valued at KHR 1,000M to KHR 2,000M for taxpayers in the agricultural, services and commercial sectors
- Assets valued at KHR 2,000M to KHR 4,000M in the industrial sector
- National and sub-national government institutions, associations or non-governmental organizations, or projects under these institutions
- Foreign embassies and consulates, international organizations and technical cooperation agencies of other countries
Large Taxpayers
- Annual turnover above KHR 4,000M for taxpayers in the agricultural sector
- Annual turnover KHR 6,000M for taxpayers in the service and commercial sectors
- Annual turnover above KHR 8,000M in the industrial sector
- Branches of foreign companies
- Subsidiary of multinational companies
- Enterprises registered as Qualified Investment Projects (QIP)
- Assets valued above KHR2,000M for taxpayers in the agricultural, services and commercial sectors
- Assets valued above KHR 4,000M for industrial
Self-Assessment Taxpayers
- Taxpayers bear their own responsibility to comply with tax laws and regulations
- Taxpayers have obligations to determine/calculate tax payable and fill the tax returns by themselves
- Taxpayers must file tax returns and pay the taxes to tax administration by themselves by the due date stipulated in the law on taxation
- It is subject to Tax Audit
Current Tax In Cambodia
- Pay As You Earn (PAYE) Income Tax
- Capital Gain Tax
- Immovable Property Tax
- Public Lighting Tax
- Means of Transportation Tax
- Accommodation Tax
- Unused Land Tax
- Value Added Tax (VAT)
- Withholding Tax
- Salary Tax
- Immovable Property Rental Tax
- Transfer Tax
- Patent Tax
Tax Avoidance and Tax Evasion
- Tax Avoidance: reducing the amount of tax that is payable by means that are within the law
- Tax Evasion: the willful, knowing, or systematic and repeated violation of tax provisions with the intention of reducing or eliminating the tax amount required by tax provisions to be paid
Test your knowledge on the background of GDT, tax definitions, purposes, regulations, collections, avoidance, evasion, tax regimes, types of taxes, and tax payment in Cambodia.
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