This service account insists on originality. The author is Zhang Xiaoming, partner of Zhuozhi (Cambodia) Accounting Firm, three years of multinational enterprise management experience, six years of listing audit experience, five years of entrepreneurial experience, Chinese certified public accountant (CPA), international certified public accountant (ACCA) ). WeChat: 13928404895, 0717264227

The first Cambodian taxation training class held by Zhuozhi (Cambodia) Accounting Firm was successfully held today at Xigang Renhe Hotel, with more than 40 participating companies. There are four sessions: Cambodia’s tax risks, how to avoid tax risks, issues that should be paid attention to in daily finance, and Q&A discussions. At the meeting, everyone actively discussed and positively affirmed this training class, and hoped that Zhuo Zhiduo would hold such an event. Here is a brief summary of the content of this meeting:

Are there penalties for tax violations in Cambodia?

The website of the Cambodian Tax Administration: http://www.tax.gov.kh/en/index.php, in English, you can learn about some basic tax regulations, but the news has been updated to March 2014. Therefore, we do not have many channels to understand the risks and costs of local tax violations in Cambodia.

Let me talk about a related case we recently encountered: A: A Hong Kong-funded enterprise mainly produces and processes garments for export to European and American countries. It was invested and established in 2013. The average annual export turnover is about 6 million US dollars. In 2019, the tax bureau According to the audit, it is believed that the company has achieved profitability since 2014 and should pay income tax. Foreign employees’ wages are low and individual income tax should be paid. As calculated by the tax bureau, from 2014, the tax should be paid up to 800,000 yuan in total. The tax payment is about 3 million U.S. dollars. In the end, the company paid a larger tax penalty. B: A video game city commissioned a Cambodian friend to file tax returns. The tax bureau fined $50,000 for failing to file tax returns correctly in the past three years. C. A Chinese customer bought a building built by a local Cambodian and paid a deposit. When the account is transferred, the tax bureau requires the landlord to pay a tax of 1 million U.S. dollars before the transfer can be made.

Why is there a fine, or why is it fined so much?

First: I don't understand the local tax regulations, there are indeed illegal facts.

Second: I think the most important point is that there is no complete accounting record. After the tax bureau determines the relevant violations and the amount of fines, you cannot provide strong evidence to refute it. Imagine if there are complete accounting records, how much tax should be paid, how much tax should be paid, the record is very clear, the tax bureau needs to show evidence for fines, because the current actual situation in Cambodia is that financial personnel rarely use accounting software to do accounts. The actual situation of running accounts and document clips, if it causes taxation concerns, it is difficult to avoid problems.

Third: Because of the first and second points, the lack of confidence, coupled with language problems, has led to the current situation of large fines.

How to avoid tax risks?

The boss doesn't take it seriously, and avoiding tax risks is just talking about it. Then why the boss doesn’t pay attention to it, the boss doesn’t understand, etc. I think they are all secondary factors. The main factor is the Cambodian environment. The boss is calculating and blocking: the future fines that may be generated by non-regulation of fiscal and taxation are in line with those required for regulation. There is a trade-off between costs. But I think Cambodia is regulating, and the government needs revenue. The current situation is that the buildings are well built and sold, rented, and there is no, or very little, project expenditures on the accounts and tax returns. The tax bureau will ask you who owns this building and what is it used for now? How do you reply?

I suggest you take a look at our previous article; Which companies will be checked by the Cambodian Taxation Bureau? The article lists the unreasonable tax filing, the situation seen by the tax bureau is quite different from the actual tax filing, and the tax filing is not on time, so these details must be done well.

Tax planning is mainly done beforehand. The cost of the building has to be sold before finding a way to do the cost. It is very late. Before the building is to be built, at least when the building is built, the cost must be prepared. The cost of this building is How much, what is the income, what is the profit, and how much tax costs will be incurred.

The cost of tax planning is mainly the cost of the invoice. Ask the supplier for the invoice, the price will increase, and the cost of getting invoices from other places is even more costly. According to the boss's individual situation, I think that if the boss has completed the original accumulation and is relatively stable, he must do a good job of tax planning. For a building of 10 million, you don't realize it at all. How big is the risk? Is it possible to explain the risk if it reflects 2 million? It can be well-prepared if it reflects 5 million. Do you think it is. In addition, what I know is that the sales revenue of Prince Real Estate is all invoicing to reflect revenue.

What to do in daily finance

Cambodia has an invoice! Of course it is not a receipt. It was issued by the company, with information such as the tax number and contact information of the supplier and the buyer, and signed it. It is different from ordinary receipts, nor like domestic value-added tax invoices, but the function is the same.

There are several points that may cause tax penalties. The registered company must be aware that 10% of the rent must be paid, the tax must be processed within 15 working days after the business license is issued, and the tax declaration must be completed before the 20th of each month. If not, a fine of 500 US dollars . The basic process of tax filing is that we complete the tax filing documents every month. After you have to sign and seal, we first go to the bank to deposit the tax, and then take the deposit slip and the signed tax filing documents to the tax bureau to submit the documents, usually the next month Go back to last month's tax return information.

Lease tax: withholding tax, 10% of the rent amount of the leased office factory is provided when the company is registered, payable from the lease start date. First of all, it is a kind of withholding tax, because the landlord has income, but the lessee has to withhold and pay it. Regardless of whether the company is registered or not, the lessor is obliged to pay the tax, and the lessee is obliged to withhold and pay it. And the payment shall be made from the date of renting. If the company has not paid before, after the company is registered, it must be paid in full in the previous months and paid on time every month thereafter. Therefore, when signing the lease contract, it is necessary to clarify who pays the lease tax, that is, whether the rent is pre-tax or after-tax.

Value-added tax: VAT, 10% of the turnover, put it in place, 10% of the invoicing turnover, minus the difference after the input value-added tax. I bought a batch of goods worth 1 million, 10% of the value-added tax, paid 1.1 million, the seller issued us a value-added tax invoice, sold this batch of 1.5 million, 10% of the value-added tax of 150,000, the total collection 1.65 million, and issued a special value-added tax invoice to the buyer. In this matter, the company should pay VAT 150,000-100,000 = 50,000 yuan. The main feature of VAT is that tax is calculated at 10% when invoices are issued, and how much tax is paid is critical to the input.

Minimum Tax: Minimum Tax, a characteristic tax of Cambodia. Prepaid monthly at 1% of turnover. That is, whether the company is profitable or not in the current month, it must pay the enterprise income tax at 1% of the turnover in advance. Yes, it must be paid at the loss, and if the profit is large, it will also be paid at 1% in advance.

Corporate income tax: Tax on Profit, 20% of the corporate profit. The income tax will be settled and paid at the end of March of the following year. Cambodia is called the end of the year closed account. After deducting the cost and expenses recognized by the tax law, the company’s income is calculated at 20%, and minus the minimum tax paid before is the corporate income tax that should be paid in a year. The key point of corporate income tax is the cost and expenses recognized by the tax law. Which ones are recognized by the tax law? Value-added tax invoices, customs invoices, reasonable wages, utility invoices issued by government departments, and related depreciation and amortization in accordance with laws and regulations. Does the receipt count? No, if you want to do it, the company has to pay a 10% tax.

Personal income tax: Tax on Salary, which is exactly the same as China's personal income tax philosophy, implements an excessive progressive tax rate. What is excess progressive? Ask Baidu. The threshold is 300 US dollars, and the tax rate is 5%-20%.