In response to the increasing demand for insight into the Cambodian tax system among the private sector, the Malaysian Business Chamber of Cambodia (MBCC) at Sofitel Phnom Penh Phokeethra organised yesterday a forum with support from the General Department of Taxation (GDT) which was attended by more than 500 people from various industries.
The one-day Tax Forum 2023 was presided over by Kong Vibol, Director-General of the GDT; Okhna Tan Khee Meng, MBCC President; and Malaysian Ambassador Datuk Eldeen Husaini Mohd Hashim.
In his welcoming remarks, Tan pointed out that yesterday’s event marked the first major tax forum since the creation of the new government under the leadership of Prime Minister Hun Manet.
He also thanked the GDT for its support, which resulted in a successful event with 550 seats snapped up before the event took place.
“The timing of this event could not have been better, as the new laws on taxation and investment were passed recently,” he said.
“This forum also showcases the new Royal Government’s commitment to always engage with the private sector. This commitment is everywhere in initiatives and forums, including the Government-Private Forum and now this forum.”
“Here, we have the opportunity to interact directly with the GDT on tax measures and have the opportunity to talk in a friendly manner with the GDT and His Excellency Kong Vibol and his management group.”
While delivering the keynote address, Vibol said that it is crucial for the private sector to learn and keep themselves updated on the Kingdom’s tax laws and regulations, given that the GDT is continuously modernising the supervision and payment of Cambodia’s taxes.
Furthermore, according to Vibol, since 2014, the government has issued 533 regulations, including laws, sub-decrees, prakas (directives), circulars, instructions and announcements, and more will be coming, making it more important than ever for business enterprises operating in Cambodia to keep up to date.
“While continuing to modernise the tax system in the Kingdom of Cambodia, we will also continue to assist taxpayers in the country through whatever means possible,” he said.
Addressing the Malaysian ambassador and the Malaysian community, Vibol promised the GDT would do its best to assist Malaysian investors in Cambodia regarding tax issues and work closely with its counterpart in Malaysia to bring their win-win cooperation to another level.
The event yesterday also featured an insightful presentation on key areas of the tax update and new law on taxation by Seng Cheaseth, Director of the Department of Law, Tax Policy, and International Tax Cooperation, and tax incentives under the new law about the new Law on Investment. The event also presented a panel discussion with experts from the GDT and a Q&A on tax issues.
Cambodia has two institutions responsible for collecting taxes.
One is the GDT, which focuses on interior taxes such as income tax, salary tax, value-added tax (VAT), and property tax, and the other is the General Department of Customs and Excise (GDCE), which collects taxes on goods entering and leaving the country.
According to Vibol, the increase in tax revenue collection was due to reforms in the tax system, including the provision of services to taxpayers, improved registration services, good audits, debt management, and resolving issues to make it easier for taxpayers to pay their taxes.
Malaysian investors are among Cambodia’s top business owners who have contributed to the Kingdom’s foreign direct investment (FDI) and labour markets.
According to the Malaysian Embassy, more than 500 Malaysian companies are operating in Cambodia.
While making profits, these companies have also been giving back to society through numerous initiatives by the MBCC.