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What is annual tax on profit (ToP) under Cambodian law on taxation?

Posted on by atappartner
  • Article 2 LoT: tax on profit is debt of resident person on income from Cambodia sources and income from foreign sources.
  • Article 33 (new) & 34 (LoT): examples of Cambodia sources incomes are income from sales of goods or services, gain on sales of fixed assets, compensation earned, commision earned, etc.
  • In calculation of ToP, taxpayer is to determine all deductible and all non-deductible expenses as well as taxable depreciation before calculating annual taxable profit.
  • Applicable ToP rates are 0%, 5%, 20% and 30% depending on the type of businesses of taxpayer.
  • Tax depreciation is allowed in full for fixed assets purchased within the tax fiscal year.
  • For 2016, tax fiscal year will be closed on 31 December. All taxpayers have obligation to prepare and declare annual tax on profit not later than 31 March 2017.
  • Section 2.6 (ToP Prakas): tax administration has the right to assess or re-assess tax on taxpayer when the taxpayer fails to maintain suficient information or complies with tax law.