Cambodian Tax Factsheet Circular No.1707

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Sciaroni & Associates is pleased to offer translation of Prakas 1707 recently issued by the General Department of Taxation. Subject to clarification from taxing authorities and advisors, it appears that the applicable concept is:  all loans (after 2 October 2013) must (a) have a contract certified by lawyer of both parties, (b) documentation showing transfer of money relevant to the loan contract, and (c) have accurate and clear records in the accounting lost or “the loan shall be considered as uncertified . . . and shall be deemed as taxable profit”  (effective 2 October 2013) (Circular 1707 on Tax Assessment on Non Interest Loan, 2 October 2013).

If you loan was executed prior to 2 October 2013, the certification requirement should not be required.  However, it may be wise to do so.  It also seems clear that documentation showing transfer of money and good accounting records must be kept.

Should you have any questions or concerns regarding the above, please do not hesitate to contact us at [email protected]

For the full article please visit our website at www.sa-asia.com

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