Cambodia Tax Regulation Update-June 2020
The Ministry of Economy and Finance (MEF) promulgated Prakas No. 525 on June 19, 2020, which aims to reduce the withholding of withholding when the Cambodian banks and microfinance institutions ("MFI") pay domestic and overseas interest payments Tax ("WHT
2021
25
Aug
What if the Cambodian company doesn't want it
2021-08-25

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) ). Customer Service WeChat: exe5555, 0974589151

Xiao Ming, I used to register a company in Westport. I don’t want it anymore. What is the risk of throwing it there?

1. Leave it alone, which means that long-term overdue and violation of regulations will result in a large number of fines and late fees, especially in the case of tax arrears.

2. It is impossible to establish a new company in Cambodia or transfer a new company, especially a legal person.

3. It will affect other companies under its name, and it is legally possible to use the assets of other companies to go through legal procedures to repay taxes and fines.

4. If there is a large amount of tax arrears or fines, it does not rule out that government agencies freeze personal assets or restrict personal activities through legal procedures.

5. Leave it alone, do you know what contracts your company will sign or what transactions will happen in the future?

What is the solution?

1. Transfer to a friend who is in need of the company, the transfer will incur change costs, but it saves the cancellation fee and the registration fee of the new company. The advantage is that it saves a lot of money, but the difficulty is to find the transferee.

2. Cancel the company.

3. If you have not operated before, you do not plan to come to Cambodia again, let alone affect other people or companies, and you are willing to take risks...

What matters should be paid attention to when deregistering a company?

1. Be sure to go through the formal procedures to cancel the tax, that is, cancel the tax first, and then cancel the Ministry of Commerce after obtaining the certificate of no tax arrears. Of course, finding a regular institution is the first step.

2. The tax declaration is still required for cancellation, and the tax declaration can only be stopped when the cancellation acceptance notice is obtained.

3. It takes about 6-10 months for the remarks. Tax cancellation needs to go through the cancellation application, cancellation acceptance, supplementary cancellation information, cancellation audit, cancellation interview and other links. You need to provide a lot of information such as accounting accounts, bank records, tax declaration information, etc., if there is a debt Taxes may also make up payment of taxes and fines, and then the Ministry of Commerce can be cancelled after the certificate of no tax arrears can be obtained.

4. Special reminder that accounting books are not tax declaration materials, but what we call accounting vouchers and related supporting documents. Does your company have them? The accounting documents are as follows:

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