Blogs

Blogs (9)

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Proin ornare consectetur sodales. Nulla luctus cursus mauris at dapibus. Cras ac felis et neque consequat elementum a eget turpis.

On the 5th of December 2017, the National Bank of Cambodia (NBC) announced that Crypto Currency like BitCoin and related instruments are not permitted by the laws, and the NBC does not recognize it. Crypto Currency advertisement and operation will put public at risk since it can be used as means for money laundering, financial termism and black market.  The NBC prohibits all banks and financial institutions from performing any transactions related to Crypto Currency and other related instruments, which is not recognized by the NBC.

Source: Letter issued by the National Bank of Cambodia on December 5, 2017.

Mr. Kong Vibol, director of the General Department of Taxation (GDT), announced at the tax seminar yesterday that GDT has officially launched e-payment platform that allows individual and corporate taxpayers to pay their obligations online, directly through bank account or at local tax department branch with less procedural steps. He said that the e-payment platform is currently only available for taxpayers that hold account with Vattanac, Acleda and Canadia banks. He added that GDT will launch a separate e-filling system early next year that would allow taxpayers to submit relevant documents online without the need of mailing them to tax authorities or submitting them in person. However, a taxpayer expressed her opinion that “many taxpayers will not be familiar with the technology, and this could prevent them from benefiting from system and it will take time before everything runs smoothly.”

Source: The Phnom Penh Post, 21 November 2017

At the 05th of October 2017, Ministry of Labor and Vocational Training issued an announcement about the determination of minimum wage for employees in textile, garment and footwear sector in 2018.  According to the announcement, the tripartite Labor Advisory Committee consisting of representatives of employees, employers and the royal government of Cambodia had discussed about the minimum wage in 2018 based on the seven determinants. Following the discussion, the representatives of employees set the minimum wage at $170, representatives of employer at $162 and the government at $165. As a result of deliberation, the minimum wage in 2018 is set at $170 effective from the 01st of January 2018.

Furthermore, the announcement elaborates that other benefits that the employees used to enjoy will remain the same. Plus other benefits, on average, the employee will receive at least $187 to $198. Besides, the government also lessens the burden of the employers by allowing them to suspend the installments of tax on profit for five years (2018 to 2022) and removing export management fee with the Ministry of Commerce.

On the same date, Ministry of Labor and Vocational Training further enforces the announcement by issuing Prakas No. 396 on the Determination of Minimum Wage for Employees in Textile, Garment and Footwear Sector in 2018. Article 1 of the Prakas states that the minimum wage for employees in textile, garment and footwear sector is officially set at $170 per month. According to Article 2, for employees in probationary period, the minimum wage is set at $165 per months and after the probationary period, they will receive $170 per months. In addition to that, other benefits will remain the same and the minimum wage will take effect at 01st of January 2018 according to Article 3 and 4.

Source: Prakas No. 396 on dated 05 October 2017 on the Determination of Minimum Wage for Employees in Garment and Footwear Sector in 2018

Last modified on Friday, 13 October 2017 08:32

Ministry of Economic and Finance (MEF) has issued the Prakas No. 559 dated May 25, 2017 on the instruction of the implementation for VAT on non-taxable supplies in accordance with the Article 57 of the Law on Taxation amended by the Law on Financial Management 2017. This Prakas aims to clarify the goods and services those are non-taxable supplies in order to ensure the consistency of VAT implementation.
The Prakas applies to the self-assessment taxpayers in making non-taxable supplies below:

1. Public postal service
2. Hospitals, clinics, medical and dental services, and the sale of medical and dental goods incidental to the performance of such services
3. The services of transportation of passengers by a wholly state owned public transportation system
4. Insurance services
5. Primary financial services
6. The importation of materials for personal use those are exempt from customs duties in accordance with the customs provisions
7. Non-profit activities for serving the public interest
8. Educational service
9. Electric power and clean water
10. Unprocessed agricultural products
11. Solid and liquid waste removal or collection services

The Prakas specifically defined the term of “primary financial services” and includes certain kind of transactions and services which fall under the term as follow:
- The deposition operations and granting loans except fees relating to such granting loans.
- The initial securities public offering in the market, securities trade or other financial instruments, and the clearing and settlement services in the securities market.
- Money Exchange Service
- Security Service
- Trading of Unshaped Gold
NOTE: There was a significant event that the public misunderstand and misinterpreted that this Prakas was issued to impose VAT on above 11 goods and services supplies. Regardless, the Prakas was issued to clarify that the aforementioned goods and services supplies are exempted from VAT and they are called “non-taxable goods and services supplies”.

Last modified on Thursday, 29 June 2017 08:50