Law on Taxation empowers tax administration to audit the activities of taxpayers and tax re-assessment if the taxpayers do not comply with Law on Taxation, Law on Amendment of Law on Taxation and Tax Provisions. The tax administration has three (3) years after the date of filing the monthly or annual tax declaration to re-assess the tax. However, this period may be extended to 10 (ten) years if there is evidence that the taxpayer obstructs the implementation of tax provisions. The definition of obstruction is very broad and includes not filing a tax return within 30 (thirty) days after the due date. The tax re-assessment by the tax administration is based on the taxpayers’ monthly and annual tax returns. In addition, the tax administration may rely on declarations and other information sent by taxpayers, as well as information obtained by tax administration from other sources. Tax assessment may be arbitrary consideration and may not be based on actual incomes or expenses or management accounts or other legal accounts. The burden of proof rests with the taxpayers if any dispute arises in connection with any tax re-assessment made by the tax administration. Additional tax must be applied to violations of tax provisions. The level of the additional tax penalty depends on the nature of the offense and is defined as follows:
- Additional tax shall be 10% of the amount under paid tax plus 1.5% of interest on the amount of underpaid tax or part of a month that the amount of the underpaid tax is not paid if the taxpayer or withholding agent is considered negligence. The taxpayer or withholding agent is considered negligence if the amount of tax is less than the amount of tax as determined by the tax provisions by no more than 10 percent or if the taxpayers fail to file a tax declaration or to pay tax at the date required by law.
- Additional tax shall be 25% of the amount under paid tax plus 1.5% of interest on the amount of underpaid tax or part of a month that the amount of the underpaid tax is not paid if the taxpayer or withholding agent is considered serious negligence. Taxpayer or withholding agent is considered serious negligence if the amount of tax paid as determined by the tax provisions by more than 10 percent.
- When the taxpayer receives the unilateral tax assessment, the additional tax shall be 40% of the amount under paid tax plus 1.5% of interest on the amount of underpaid tax or part of a month that the amount of the underpaid tax is not paid. Interest shall not be applied during the period of tax-reassessment under Article 118 of the Law on Taxation or within 30 days after delivery of the letter of notification of for tax collection. The tax administration may make unilateral tax assessment to taxpayers in the case that the taxpayers fail to maintain proper accounting records or other documents in accordance with Cambodian taxation law.
Royal Turtle Tax Consulting Co., Ltd. (R.T.T.C) is a private limited company officially established in March 2021 in Phnom Penh, Kingdom of Cambodia by 100% Khmer shareholder in order to help taxpayers solve technical problems related to tax affairs and new business registration as well as to help taxpayers perform their tax obligations properly. R.T.T.C is a tax firm which is licensed to operate as a Tax Agency in the Kingdom of Cambodia. Our registered office is located at Private Room G04, #16B, Street 320, Village 6, Sangkat Boeng Keng Kang 3, Khan Boeng Keng Kang, Phnom Penh.
We provide services as follows:
- Monthly and Annual Tax Return Preparation Services
- Tax Consulting Service
- Registration of New Company and Update Company Information at MOC, GDT & MLVT
- Register company at National Social Security Fund (NSSF)
- Requesting other Business Licenses at Relevant Ministries
- Filing annual declaration at MOC
- Suspension of Business Activity and Company Dissolution
- Requesting Annual Foreign Employee Quota at MLVT
- Requesting Cambodian Workbook and Foreigner Work Permit Card
- Other services
We help our clients register and update information with MOC, GDT & MLVT, prepares and submits tax returns to GDT, maintain tax related record and/or information, enquiry about tax related matters with GDT, submits requests for reconsideration of decision issued by GDT and so on.
If you are thinking of starting a business or are looking for the services as mentioned above from a firm which is licensed to operate as a tax agency in the Kingdom of Cambodia, you have come to the right place. Contact us now at (+855) 77 776 333 for a free consultation. Thank you!