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

Hun Sen said at a seminar on May 29, “I take this opportunity to announce that the 1% profit prepayment tax will be abolished as soon as possible. Because the prepayment tax is only a way for the government to borrow money from private companies, and currently Cambodia The government has sufficient financial capacity to no longer rely on pre-paid taxes."

1. What is the prepayment tax on profits

First introduce the profit prepayment tax, that is, the minimum tax (Minimum Tax). The tax bureau requires that the profit tax be prepaid at 1% of the income and paid monthly. Even if the company has been losing money for the current month or has been making losses, it must pay corresponding taxes as required. Ruhong joked and said, "If I were an investor, I would also have to file a complaint, because it has not yet opened business, and the profit or loss is unknown, and I have lost 1% (prepaid tax)."

2. When will the profit prepayment tax be cancelled?

According to current information, the specific implementation time has not yet been determined, and it is expected to be abolished by the end of the year at the earliest. We will continue to report and pay attention to relevant follow-up information.

3. Will all companies cancel the prepayment of taxes?

According to Minister of Finance and Economics Weng Ben Mo Niluo, those who apply for exemption of prepayment tax must meet the requirements set out in Departmental Regulation No. 638 issued by the Ministry of Finance and Economics on July 4, 2017.

"The Ministry of Finance and Economics believes that in order to avoid the prepayment of profit tax, all companies will ensure that their accounting records are complete, legally compliant, and comply with Cambodian tax laws, accounting laws, and audit laws."

That is to say, if a company wants to not pay the prepaid profit tax, it must abide by the law, have accounts to check, and have clear accounts. Otherwise, you still need to pay a prepayment tax on profits.