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

Two months ago, a customer consulted us that Cambodian real estate development companies adopt a tax-inclusive system, that is, the tax bureau gives you an artificially determined amount without the need for relevant original documents and accounting vouchers. Because this tax amount is determined artificially, there is more room for operation.

I explained it at that time, but didn't pay much attention. But recently another client consulted the same thing and said that there was also a signing order from Prime Minister Hun Sen. Then a colleague called me and asked me about it. We feel that this matter is more serious, so we inquired about the relevant laws and communicated with the relevant personnel of the State Administration of Taxation of Cambodia many times, and compiled this article. Please give us more guidance on the shortcomings.

First of all, let me talk about the causes and consequences of this tax-inclusive argument. First of all, the statement of the tax package system is inaccurate. Strictly speaking, it should be called an approved collection. Approval of tax collection refers to a type of taxpayer’s assessment of tax payable by tax authorities in accordance with the law when the taxpayer’s accounting books are imperfect, the information is incomplete, it is difficult to check the accounts, or it is difficult to accurately determine the taxpayer’s tax payable due to other reasons. The method of expropriation is referred to as “approved expropriation”. Simply put, the approved levy is mainly for small businesses.

We consulted Room 207, Administration Office, State Administration of Taxation, Cambodia

So, let’s take a look at the situation of Cambodian companies. When the company is registered, the Cambodian Taxation Bureau divides the company into small companies, medium companies, and large companies. The tax bureau generally classifies real estate development companies as large companies. Large companies are not subject to approved collections, so the tax package system used in real estate development is contrary to the relevant legislative concepts.

Let's take a look at our actual visits. According to our communication with the State Administration of Taxation, before, a certain company had been only doing expenses and had no income. In order to strengthen tax supervision, all companies will check their accounts and levy them from 2019 onwards. For companies that are found to have tax abnormalities, the tax department will check the relevant tax situation through various tax inspection methods such as consulting the contract, obtaining bank records, requesting original documents, and conducting rationality analysis to check the relevant tax situation and collect taxes in accordance with the audit information according to the law.

We consulted Room 405, Consultation Room, State Administration of Taxation of Cambodia

Based on the above, we can determine that there will be no so-called tax-inclusive method for real estate development enterprises in Cambodia from 2019. Remind all real estate development companies to be cautious about tax issues.