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Prakas on tax service agent
The Ministry of Economy and Finance (MoEF) has issued a Prakas no. 455.MEF.Prk on 12 April 2013 on tax service agent.
Accordance to this Prakas, the tax service agent refers to a prson who receives the permission to act as a tax service agent from General Department of Taxation (GDT). A licence is required in order to perform services as a tax service agent.
A licence fee for physical person is Riel 1,000,000 and Riel 2,000,000 for a legal entity or pass-through, including Riel 500,000 each for their branch office (if any). This licence is valid only for 2 years and is required to be renewed at least 30 days before its expiration.
General Department of Tax, GDT will impose penalties on any person who act as tax service agents without a licence, including fines up to Riel 10,000,000 and/or imprisonment up to 1 year. A taxpayer who received tax services from a person who is not a licenced tax service agent, GDT will impose Riel 5,000,000 penalty.
New amendments on Stamp Duty
Under the approved 2013 Law on Financial Management, LFM, there are certain amendments of Article 40 of the Law on Financial Management 1995.
The key changes are as below:
• New duties imposed on:
a. Transfer of any or all part of shares or rights to procession of shares in Cambodian company will be subjected to 0.1% of Stamp Duty on the transfer value.
b. A stamp duty of 0.1% will also apply on the government contract related to the supply of goods/ services that are used under the state budget.
• Stamp Duty on certain legal documents such as for the establishment, dissolution or merger of a company increased from Riel 100,000 (approximately USD25) to Riel 1million (approximately USD250).
• Exemption - acquisition of ownership or tenancy right over concession land granted by the Royal Government of Cambodia is fully exempted.
• Acquisition of ownership or right of possession over immovable property from relative is allowed for deduction from the base for calculation of Stamp Duty:
a. Riel 200,000,000 (approximately USD50,000) if the property is acquired in the form of succession; and
b. Riel 100,000,000 (approximately USD25,000) if the transfer in the form of gift or donation.
The Stamp Duty is due for payment within three (3) months from the date of transaction. The 1995 LFM defined the person who obtains ownership or right possession has the obligation to pay the Stamp Duty to the tax authority.
