Cambodia’s General Department of Taxation (GDT), confirmed this week that it had collected 95 per cent of its annual revenue collection target for 2020, despite the challenges posed by the COVID-19 pandemic.
2020 GDT collections
The Cambodian GDT has collected $2.697 billion in tax revenue out of the $2.850 billion target set in the 2020 National Budget Law, by December 16, 2020.
GDT director-general Kong Vibol confirmed the information and said “The business owners who earned tidy sums in 2019 declared them in their tax returns in 2020. And I’ve kept tabs on the trend in revenue each month – we are still doing well. This translates into high revenues for us this year.
As one can see, despite the impact of COVID-19 and an economic slowdown, we were still able to achieve 94.63 per cent of the goal for the year. I’m confident that we’ll meet the target by the end of the year.”
The GDT 2021 Implementation Plan will have a lower target of $2.271 billion in 2021 due to a decrease in business in 2020, most notably by the tourism sector across the Kingdom.
Vibol added “With the businesses based at main tourism destinations experiencing devastation, the tourism sector dropped nearly 95 per cent. But we still hold on to hope that we can manage the situation and will realise the $2.271 billion revenue collection plan in 2021.”
GDT tax collections 2018-2020:
- 2018: $2.197 billion
- 2019: $2.819 billion
- 2020: $2.850 billion (target)
- 2021: $2.271 billion (target)
E-VAT Refund System to close
The Ministry of Economy and Finance’s General Department of Taxation (GDT) announced in December 2020, that the electronic value-added tax refund system (E-VAT Refund System) will close on January 1.
Cambodian taxpayers would still have access to the E-VAT Refund System features and functions through the electronic filing system (E-Filing System). Taxpayers have the option of paying $100 per annum which allows file downloads, typically from accounting systems or spreadsheets reports the Phnom Penh Post.
Tech Companies Income Taxes 2021
In December 2020, the Minister of Posts and Telecommunications Chea Vandeth also told international digital tech giants that the Cambodian government will collect corporate income taxes from businesses based on their virtual economic presence in the Kingdom.
The aim would be to “Collect taxes on services provided by firms that generate revenue from Cambodians but are not registered in Cambodia” reports the Phnom Penh Post.
In November 2020 we wrote about the possible implications of the government introducing a digital service tax on international tech companies.