Notification No. 039 On The GDT Visiting Enterprises To Collect Information, Sciaroni & Associates

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The Ministry of Economy and Finance issued Notification No. 039, dated 21 July 2016 on Visiting Enterprises to Collect Enterprises’ Information in Phnom Penh to Justify Tax Registration (“Notification 039”). Pursuant to Notification No. 039, an appointed working group, consisting of representatives from the General Department of Taxation (“GDT”) and the Phnom Penh Municipality (“Working Group”) will begin to collect information from all enterprises in Phnom Penh starting from August 2016 onwards. The GDT has announced that this collection of information by the Working Group will not affect the enterprises’ operation of their business activities. 

The purposes of Notification 039 are to collect an enterprise’s statistics, raise some questions if necessary related to the information provided (such as its identity and activities and others necessary information to improve the investment environment in Cambodia) and to encourage the development of tax policy, dissemination of tax-related information, tax registration services and other tax services.

The intention of the GDT and MEF is to update the records the authorities currently hold and to bolster the implementation of Prakas No. 496 on Tax Registration, which essentially repealed and replaced Prakas No. 1139. (Click this page for more detail on these two Prakas).

Under Notification 039 all enterprise owners are requested to prepare a copy of the following basic documents prior to the working group’s visit:

For enterprises already registered with the GDT:

  1. Patent Tax Certificate (most recent year) and VAT certificate;
  2. Annual tax return/payment receipt (most recent year) and monthly tax return/payment receipt (most recent month); and
  3. Water bill and electricity bill (most recent month).

For enterprises not yet registered with the GDT:

  1. Khmer identification card or passport or family book or residence book of the enterprise owner(s);
  2. Business permission certificate issued by the competent authorities (if available);
  3. Other licenses (if available);
  4. Immovable property ownership certificate or leasing agreement of the location and receipt of tax payment on immovable property; and
  5. Water bill and electricity bill (latest month).

It is expected that the GDT will give enterprises from (2) two to four (4) weeks prior notice of the Working Group’s visitation.

Ostensibly, the purpose of Notification 039 is to check which enterprises have complied with the re-registration obligations pursuant to Prakas 496 and to ensure that each enterprise has fulfilled its tax filing obligations.

While there has been no indication as to when this initiative will be completed, enterprises should expect further measures for enforcement of compliance based on the findings of the Working Group.

This article was written by Simon Burlinson, Legal Advisor at Sciaroni & Associates.

Simon is a qualified English solicitor with expertise in IP law, cross-border corporate transactions, data protection compliance and advises the pharmaceutical sector. He has worked in one of the world’s largest international law firms based in London and as a forensic toxicologist for Imperial College. He earned the MSc in Management of Intellectual Property from Queen Mary’s College and BSc. (Hons.) in Pharmacology and Toxicology from King’s College, London. He speaks English and French.

 

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