- December 17, 2020 1:59 AM
- November 22, 2021 6:56 PM
- February 29, 2020 5:49 AM
Reform offers foreign investment incentive
PHNOM PENH – Cambodia boosted its national coffers when it implemented a 10 percent value-added tax on e-commerce on April 1.
Senior tax official Eng Ratana said about 20 large foreign digital companies had registered to apply the VAT, while other foreign companies were rushing to register with the General Department of Taxation.
These companies included Facebook, YouTube, Netflix, Amazon, Google, Alibaba, Microsoft, TikTok, MasterCard and Zoho Corporation.
He said collection of tax on e-commerce transactions from overseas-based companies contributes to the national economy and creates fair competition between domestic and foreign e-commerce operators.
"This 10% VAT will make our economy run better by attracting modern technology companies to our country and creating jobs for our people," he said.
"Foreign digital investors can open subsidiaries in Cambodia by bringing modern technology to our country."
If Cambodia does not take VAT from foreign companies that provide digital goods services and only takes it from local companies, those foreign companies would not come to Cambodia.
They would do business only from abroad and take money from Cambodia without paying any taxes, he said.
In 2021, the General Department of Taxation collected $2,782 million from all sources. It collected $1,132 million in the first three months of this year.