Advanced Cambodian Taxation (ACCT 651)

OVERVIEW

1. COURSE DESCRIPTION

This course aims to develop advanced level knowledge and skills relating to the Cambodian tax system as
applicable to individuals and companies. The course on basic Cambodian Tax (ACCT 551) is a prerequisite
for this subject as this course aims to leverage the basic tax knowledge gained under ACCT 551 and apply
these into practice and case studies.
This course is also suitable for tax professionals, providing tax services in Cambodia as a tax agent, advisor,
or as an employee handling the tax compliance requirements of the business. There are four main goals:
First, students will use the advanced knowledge gained from the class to make detailed analysis as to what
Cambodian tax(es) applies to non-routine and complex transactions carried out in Cambodia. Second,
students will be able to determine the tax liabilities and how to remit the taxes to the Cambodian tax
authority. Third, students will be able to apply the knowledge gained on making tax planning techniques for
individuals and companies. Fourth, students will be able to analyze and prepare strategies for managing tax
issues, including managing the tax risk during tax audit events.

2. REASON FOR THE COURSE

This course introduces candidates to the subject of taxation and provides broadened and deepened
knowledge and skills relating to Cambodia taxation, as they affect the activities of individuals and businesses.
In this course, candidates are introduced to the rationale behind and the functions of the tax system. The
course then considers the separate taxes that an accountant and consultants would need to have a deeper
knowledge of corporation tax liability withholding tax, and the value added tax liability as well as capital
gain tax, double taxation agreements (DTA), transfer pricing rules, tax audit and protest procedures.
The Cambodian tax system is still developing and personal income tax has been introduced in Cambodia
under 2019 Financial Law but it has not yet been implemented. However, the Capital Gains Tax, which is a
part of personal income tax, will be discussed in detail in this course on how it impacts individuals. In addition,
withholding tax is one of the mechanisms used by the governments of the developing countries to collect
tax revenue from non-tax registered persons, and Cambodia is no exception. However, the withholding
tax rate will be adjusted for residents of countries that have a DTA with Cambodia. In such circumstances,
candidates develop knowledge and skills in regards to “withholding tax as well as tax reductions under
the DTAs”. Furthermore, the course will introduce a transfer pricing method used by the multi-national
companies for related party transactions.
Having covered the core areas and in-depth analysis of the Cambodia taxes, the candidate should be able
to identify tax issues impacting individuals and companies, compute tax liabilities, and manage tax planning
techniques for that individual and companies.

3. STUDY HOURS

4. ROLE IN CURRICULUM


Prerequisites:
Students must have successfully completed Cambodian Tax (ACCT 551) and passed the Diploma in
Cambodian Tax exam.

SKILLS

  • LEARNING OUTCOMES
  • ASSESSMENT AND GRADING
  • TEACHING METHODS
  • STUDY PLAN
  • TEXTBOOKS AND REFERENCES

5. COURSE LEARNING OUTCOMES (CLO)

On successful completion of this course, students will be able to:

Knowledge Level of Learning Related PLO
Explain Cambodian Tax System (CK1)
Explain the scope and operations of the Cambodian tax system, integrating knowledge from previous tax studies.		 Understand PK1
Cognitive Skills Level of Learning Related PLO
Apply Tax Liabilities in Cambodia (CC1)
Evaluate monthly tax returns and tax on income for business in Cambodia in compliance with Cambodian tax law and regulations.		 Evaluate PC4
Communication, Information Technology, and Numerical Skills Level of Learning Related PLO
(None)    
Interpersonal Skills and Responsibilities Level of Learning Related PLO
Discuss Tax Implications (CCIT1)
Discuss on tax issue with tax officers		 Respond PC4

6. ASSESSMENT AND GRADING

Grades will be determined based on a grading score, calculated using the following assessments and score allocations:

Grades will be determined based on the following assessments and score allocations:

SKILL Assessment Skill Weighting
for Grade
Quiz Tax Simulation Final Exam
Explain Cambodian Tax System (CK1) 100%     10%
Apply Tax Liabilities in Cambodia (CC1) 20% 40% 40% 70%
Discuss Tax Implications (CCIT1)   50% 50% 20%

7. TEACHING METHODS

This course is primary lecture and assignment based; assigned readings will support learning and serve as
a reference to materials covered in class. During class, approximately one hour and 45 minutes of the total
class will be devoted to lecture with another 45 minutes of the class will be for practices and quizzes.

Tax Simulation 1 : Group (Monthly Tax Declaration)
Tax Simulation 2 : Group (Annual Tax on Income)

8. STUDY PLAN

The course targets the 50 sessions in the study plan below. Each session is 1.5 class hours each; there are a total of 75 class hours. The study plan below describes the learning outcome for each lesson, described in terms of what the student should be able to do at the end of the lesson. Readings should be done by students as preparation before the start of each class. Implementation of this study plan may vary somewhat depending on the progress and needs of students.

  Lesson Learning Outcomes Teaching and Learning Activities,
Assessment
1

Cambodian Tax System and Administration
Discuss refresher on basic principles under the Cambodian tax
law and regulations:
1. Explain the “self-assessment” regime and the roles of
both the taxpayer and the GDT plays in the effective
implementation of the tax rules
2. Describe the classification of taxpayers (i.e., physical persons
vs. enterprise, resident vs. non-resident, and classification
of taxpayers under the self-assessment regime), and the key
difference in their tax compliance obligations
3. Describe the concept of “Gold”, “Silver, and “Bronze”
taxpayers and its impact/benefits
  • Lecture
  • Discussion and question

Reading: Law on Taxation (LoT) chapter 1, LoT (Article 29-32)

Order (Prakas) No. 009 MEF.Prk on Classification of Taxpayers under the SAR
2

Tax on Salary 1
Discuss the specific issues and topics involving tax on salary and
fringe benefits:
1. Discuss the ToS and FBT implications on non-residents
temporarily assigned as employees in a Cambodia
subsidiary (i.e., under secondment or business assignment
arrangement):
a. Discuss the applicability of ToS and FBT on this
arrangement
b. Differentiate ToS vs. FBT on various allowances,
benefits, and renumeration package provided to
employees/expatriate employees.
c. Discuss the scope of the ToS and FBT (e.g., tax base and
tax rate)
d. Discuss the ToS and FBT compliance requirements
on the part of the non-resident parent company
(home company), the secondee, and the Cambodian
subsidiary (host company).
e. Explain the tax implications if the salaries are paid by
the non-resident parent company, and are charged
back to the Cambodian entity via intercompany cost
allocation (e.g., management fees)
2. Discuss the ToS and FBT implications on providing share
options to staff, payment of indemnities to staff, overseas
staff/BoD involving in activities of local entity, etc.
3. Discuss a basic overview of a personal income tax (PIT)
regime and how it will potentially impact the Cambodian tax
landscape
  • Lecture
  • Discussion and question

Reading: Order (Prakas) No. 543 on Tax
on Salary,
Sub-decree No. 196 on Annual Income Tax
and Monthly Salary Tax Thresholds,
Law on Taxation (Article 40-54)
Order (Prakas) No. 098 Tax on Income
(Article 56)
3

Tax on Salary (ToS) 1
Discuss the specific issues and topics involving tax on salary and
fringe benefits:
1. Discuss the ToS and FBT implications on non-residents
temporarily assigned as employees in a Cambodian
subsidiary (i.e., under secondment or business assignment
arrangement):
a. Discuss the applicability of ToS and FBT on this
arrangement
b. Differentiate ToS vs. FBT on variance allowances,
benefits, and renumeration package provided to
employees/expatriate employees.
c. Discuss the scope of the ToS and FBT (e.g., tax base and
tax rate)
d. Discuss the ToS and FBT compliance requirements
on the part of the non-resident parent company
(home company), the secondee, and the Cambodian
subsidiary (host company).
e. Discuss the tax implications if the salaries are paid by
the non-resident parent company, and are charged
back to the Cambodian entity via intercompany cost
allocation (e.g., management fees)
2. Discuss the ToS and FBT implications on providing the share
options to staff, payment of indemnities to staff, overseas
staff/BoD involving in activities of local entity, etc.
3. Discuss a basic overview of a personal income tax (PIT)
regime and how it will potentially impact the Cambodian tax
landscape
  • Lecture
  • Discussion and question

Reading: Order (Prakas) No. 543 on Tax on Salary,
Sub-decree No. 196 on Annual Income Tax
and Monthly Salary Tax Thresholds,
Law on Taxation (Article 40-54)
Order (Prakas) No. 098 Tax on Income
(Article 56)
4

Withholding Tax (WHT) 1
Discuss the basic principles and concepts under the WHT
system:
1. Revisit the classification of resident vs. non-resident
taxpayers
2. Discuss in detail the “Cambodian-source income”
3. Discuss the concept of Permanent Establishment (PE) and
how it impacts the application of the WHT mechanism

 Reading: Law on Taxation (Article 25-27,
33-35, 38-39, and 88)
Order (Prakas) No. 098 Tax on Income
(Article 5, 7 & 45-50)
5

Withholding Tax (WHT) 2
Discuss international tax treaties, and international tax model
conventions:
1. Explain the nature scope of DTA
2. Explain the applicability and benefits of a DTA
3. Introduce international tax model conventions (e.g., OECD
and UN Model Convention tax conventions)

 Reading: Law on Taxation (Article 25-27,
33-35, 38-39, and 88)
Order (Prakas) No. 098 Tax on Income
(Article 7 & 45-50)
Relevant DTA agreements between
Cambodia and partner countries
• Effective from 1 January 2018:
Singapore and Thailand
• Effective from 1 January 2019: China,
Brunei and Vietnam
• Effective from 1 January 2020: Hong
Kong
• Effective from 1 January 2021:
Indonesia and Malaysia
• Effective from 1 January 2022: Republic
of Korea
• Entered the agreement on 23 April
2021: Macau

• Entered the agreement on 27 February
2022: Turkey
Explore: OECD website at https://www.
oecd.org/

Explore: UN-iLibrary at https://www.un-
ilibrary.org/
6

Withholding Tax (WHT) 2
Discuss international tax treaties, and international tax model conventions:

  1. Explain the nature scope of DTA
  2. Explain the applicability and benefits of a DTA
  3. Introduce international tax model conventions
 Reading: Law on Taxation (Article 25-27, 33-35, 38-39, and 88), Order (Prakas) No. 098 Tax on Income, Relevant DTA agreements between Cambodia and partner countries
7

Withholding Tax (WHT) 3
Explore WHT issues involving non-routine transactions:

  1. Discuss the specific WHT exemption for local and overseas transactions.
  2. Discuss the detail definition of “management and technical” services.
  3. Discuss the WHT implications on royalty payments vs. service payments.
  4. Discuss the WHT implication on dividend distributions.
  5. Discuss the tax trigger point of dividend transactions.
 Reading: Law on Taxation (Article 25-27, 33-35, 38-39, and 88), Order (Prakas) No. 098 Tax on Income, Order No. 372.MEF.Prk, Article 12A and other comments for Technical Services
8

Withholding Tax (WHT) 4

  1. Explain the WHT tax rate reduction for DTA and how to apply for such reduction.
  2. Discuss the overview of the DTA application process.
  3. Discuss the process of obtaining WHT certificates and the rules on foreign tax credits.
 Reading: Law on Taxation (Article 25-27, 33-35, 38-39, and 88), Order (Prakas) No. 098 Tax on Income, Instruction No. 4084.GDT, Instruction 020.MEF, Relevant DTA agreements
9

Value Added Tax (VAT) 1
Discuss the basic principles and concepts under the VAT system:

  1. Describe the general principles of VAT
  2. Identify taxable supply and non-taxable supply to apply applicable VAT rate.
  3. Discuss the issues on the time of supply rules for calculation of the VAT to be paid.
  4. Revisit the rules on VAT adjustments.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Law on Taxation, Section 3, Art 55-84; Sub-Decree 114 on Value Added Tax; Order (Prakas) No. 559.MEF.Prk; Instruction No. 1280.GDT
10

Value Added Tax (VAT) 2

  1. Discuss zero-rating of the export of goods and services, VAT state charge and special treatment of VAT on transfer of a business.
  2. Discuss in detail the criteria to qualify for VAT zero-rating on exported services.
  3. Explain the issues on mixed taxable and non-taxable supply input tax to find out allowable VAT input credit.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Law on Taxation, Section 3, Art 55-84; Instruction No. 9888 GDT; Sub-Decree 114 on Value Added Tax
11

Value Added Tax (VAT) 3
Discuss the new VAT on E-commerce rules:

  1. Discuss the nature and scope of VAT on E-commerce.
  2. Discuss B2B vs. B2C transactions.
  3. Introduce the concept of “reverse charge” mechanism.
  4. Discuss the compliance requirements of the supplier and the customer.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Law on Taxation, Section 3, Art 55-84; Sub-Decree 65; Prakas 542.MEF.Prk; Instruction No. 20522.GDT; FAQ and related VAT on E-commerce instructions
12

Value Added Tax (VAT) 3
Discuss the new VAT on E-commerce rules:

  1. Discuss the nature and scope of VAT on E-commerce.
  2. Discuss B2B vs. B2C transactions.
  3. Introduce the concept of “reverse charge” mechanism.
  4. Discuss the compliance requirements of the supplier and the customer.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Law on Taxation, Section 3, Art 55-84; Sub-Decree 65; Prakas 542.MEF.Prk; Instruction No. 20522.GDT; FAQ and related VAT on E-commerce instructions
13

Value Added Tax (VAT) 4
Explore VAT issues on specific transactions:

  1. Discuss the nature of “continuous supply” for VAT purposes.
  2. Discuss the VAT implications on sale of fixed assets.
  3. Discuss the VAT exemption on transfer of business.
  4. Discuss VAT implications on “free goods or services”.
  5. Introduce the concept of “Principal vs. Agent” relationship.
  6. Discuss the VAT issue on various discounts.
 Reading: Sub-Decree 114 on Value Added Tax; Instruction No. 15301 GDT; Instruction No. 12093 GDT; Order (Prakas) No. 597.MEF.Prk
14

Value Added Tax (VAT) 4
Explore VAT issues on specific transactions:

  1. Discuss the nature of “continuous supply” for VAT purposes.
  2. Discuss the VAT implications on sale of fixed assets.
  3. Discuss the VAT exemption on transfer of business.
  4. Discuss VAT implications on “free goods or services”.
  5. Introduce the concept of “Principal vs. Agent” relationship.
 Reading: Sub-Decree 114 on Value Added Tax; Instruction No. 15301 GDT; Instruction No. 12093 GDT; Order (Prakas) No. 597.MEF.Prk
15

Tax on Income (ToI) 1
Discuss refresher on basic principles on ToI, including:

  1. Explain the principles and scope of ToI.
  2. Explain the accrual basis of accounting under the Cambodian International Financial Reporting Standards and its relevance on the computation of ToI.
  3. Explain the concept of unearned revenue, advance collections, security deposits, and its relevance in the computation of the ToI.
  4. Discuss the relationship/reconciliation of accrued revenue, billings, collection/receipts, and unearned revenue.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Income; Order (Prakas) No. 098 MEF Tax on Income
16

Tax on Income (ToI) 2

  1. Explain the concept of capital gains and taxation.
  2. Discuss the tax implication on capital gains.
  3. Introduce the new Capital Gain Tax regime.
  4. Analyze ToI/CGT implications on specific transactions.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Order (Prakas) No. 098 MEF Tax on Income; Prakas No. 346.MEF.Prk; Notification No. 4577.GDT
17

Tax on Income (ToI) 2

  1. Explain the concept of capital gains and taxation.
  2. Discuss the tax implication on capital gains.
  3. Introduce the new Capital Gain Tax regime.
  4. Analyze ToI/CGT implications on specific transactions.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Order (Prakas) No. 098 MEF Tax on Income; Prakas No. 346.MEF.Prk; Notification No. 4577.GDT
18

Tax on Income (ToI) 3

  1. Discuss refresher on basic deductibility requirements.
  2. Discuss deductibility criteria on specific business expenses/deduction, such as provision, capital loss, tax depreciation, unpaid expenses, salary and bonus, sale discount, charitable contribution, interest expense limitation, taxable loss carried forward.
  3. Discuss the capitalization rules for mineral resource and petroleum operations.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Income; Order (Prakas) No. 098 MEF Tax on Income; Prakas No. 453.MEF.Prk
19

Tax on Income (ToI) 3

  1. Discuss refresher on the basic deductibility requirements.
  2. Discuss deductibility criteria on specific business expenses/deduction.
  3. Discuss the capitalization rules for the mineral resource and petroleum operations.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Income; Order (Prakas) No. 098 MEF Tax on Income; Prakas No. 453.MEF.Prk
20

Tax on Income (ToI) 4

  1. Introduce the concept of temporary and permanent difference.
  2. Explain the concept of deferred tax assets and deferred tax liabilities.
  3. Analyze the DTA/DTL impact of the tax adjustments.
  4. Explain the calculation of current income tax and deferred tax.
  5. Explain the computation of effective tax rate.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Income; Order (Prakas) No. 098 MEF Tax on Income; IAS 12 Income Taxes
21

Tax on Income (ToI) 4

  1. Introduce the concept of temporary and permanent difference.
  2. Explain the concept of deferred tax assets and deferred tax liabilities.
  3. Analyze the DTA/DTL impact of the tax adjustments.
  4. Explain the calculation of current income tax and deferred tax.
  5. Explain the computation of effective tax rate.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Income; Order (Prakas) No. 098 MEF Tax on Income; IAS 12 Income Taxes
22

Tax on Income (ToI) 4

  1. Introduce the concept of temporary and permanent difference.
  2. Explain the concept of deferred tax assets and deferred tax liabilities.
  3. Analyze the DTA/DTL impact of the tax adjustments.
  4. Explain the calculation of current income tax and deferred tax.
  5. Explain the computation of effective tax rate.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Income; Order (Prakas) No. 098 MEF Tax on Income; IAS 12 Income Taxes
23 In class tests
  • Lecture
  • Discussion and question
  • Assignment and quiz
24

Tax on Income (ToI) 5

  1. Discuss and explain the ToI implications on a comprehensive case study for ToI, including performing reconciliation of accounting income to taxable income, computing current income tax, total income tax payable, and effective tax rate.
  • Lecture
  • Discussion and quiz
  • Assignment and quiz
25

Tax on Income (ToI) 6

  1. Discuss key ToI issues/considerations for the banking and financial services industry.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Law on Taxation, Chapter 1; Prakas No. 87-017-344; Prakas No. 1535.MEF.PrK
26

Tax on Income (ToI) 6

  1. Discuss key ToI issues/considerations for the banking and financial services industry.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Law on Taxation, Chapter 1; Prakas No. 87-017-344; Prakas No. 1535.MEF.PrK
27

Tax on Income (ToI) 7

  1. Discuss key ToI issues/considerations for the insurance industry.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Law on Taxation, Chapter 1; Prakas No. 490; Insurance payment tax rules
28

Tax on Income (ToI) 8

  1. Explain ToI incentives available for Qualified Investment Project (QIP) under the New Law on Investment.
  2. Explain the concept of Expanded QIP and tax incentives.
  3. Explain the compliance obligations and benefits for entities engaged in multiple QIP projects.
  4. Discuss specific compliance requirements for QIPs.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Law on Taxation; New Law on Investment 2021; Sub-Decree No. 33
29

Tax on Income (ToI) 9

  1. Explain taxpayer recourse for non-compliance issues.
  2. Discuss voluntary amendment and the pros and cons for such approach.
  3. Explain the process of ToI amendment.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Law on Taxation, Chapter 1; Order (Prakas) No. 098 MEF; Order (Prakas) No. 217.MEF.PrK
30

Tax on Income (ToI) 10

  1. Demonstrate how to disclose and fill-out the ToI return through a comprehensive ToI case study.
  • Lecture
  • Discussion and quiz
  • Assignment and quiz

Reading: Law on Taxation, Chapter 1; Instruction No. 4091 GDT; Order (Prakas) No. 098 MEF Tax on Income
31

Tax on Income (ToI) 10

  1. Demonstrate how to disclose and fill-out the ToI return through a comprehensive ToI case study.
  • Lecture
  • Discussion and quiz
  • Assignment and quiz

Reading: Law on Taxation, Chapter 1; Instruction No. 4091 GDT; Order (Prakas) No. 098 MEF Tax on Income
32

Transfer Pricing (TP) 1

  1. Introduce the concept of profit shifting and the principles of Transfer Pricing.
  2. Discuss the concept of “arms-length” principle.
  3. Discuss the scope of the Cambodian Transfer Pricing Regulation.
  4. Explain the comparable methods.
  5. Discuss each method of transfer pricing based on Cambodian rules.
  6. Explain the requirement for transfer pricing documentation.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: OECD Transfer Pricing Guidelines; Order (Prakas) on Rules and Procedure for Allocation of Income and Expenses Among Related Parties, Order (Prakas) No. 986 MEF.BK
33

Transfer Pricing (TP) 1

  1. Introduce the concept of profit shifting and the principles of Transfer Pricing.
  2. Discuss the concept of arms-length principle.
  3. Discuss the scope of the Cambodian Transfer Pricing Regulation.
  4. Explain the comparable methods.
  5. Discuss each method of transfer pricing based on the Cambodia transfer pricing regulations.
  6. Explain the requirement for transfer pricing documentation.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: OECD Transfer Pricing Guidelines; Order (Prakas) No. 986 MEF.BK
34

Transfer Pricing (TP) 2

  1. Discuss common related party transactions and tax implications, including loans to/from related party, management fee, shared services arrangement, cost allocation from Head Office/Parent Company, and purchase of goods/assets.
  2. Provide short case studies/examples of these common related party transactions and analyze the potential tax impact.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Order (Prakas) No. 986 MEF.BK; Circular No. 1707; Instruction No. 151; Instruction No. 11946; Instruction No. 4909; Instruction No. 10979
35

Transfer Pricing (TP) 2

  1. Discuss common related party transactions and its key tax implications.
  2. Provide short case studies/examples of these common related party transactions and analyze the potential tax impact.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Order (Prakas) No. 986 MEF.BK; Circular No. 1707; Instruction No. 151; Instruction No. 11946; Instruction No. 4909; Instruction No. 10979
36 In class tests
  • Lecture
  • Discussion and question
  • Assignment and quiz
37

Discuss Comprehensive Case Studies 1:
1: Local vs. Foreign Supplies

  1. Discuss pros and cons, and key tax implications of purchasing goods/services from local suppliers vs. non-resident suppliers.

2: Third party vs. related party

  1. Discuss pros and cons, and key tax implications of purchasing goods/services from a third party vs. a related party.
  • Lecture
  • Discussion and question
  • Assignment and quiz
38

Discuss Comprehensive Case Study 2:
1. Business Acquisition/Investments in Cambodia

  1. Discuss pros and cons, and key tax implications on business acquisition/investments in Cambodia.

2. Debt vs Equity

  1. Discuss pros and cons, and key tax implications on funding of capital/investment in Cambodia through Debt vs. Equity.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Order (Prakas) No. 986 MEF.BK; Instruction No. 10979 GDT on supporting documents for interest between related parties
39

Discuss Comprehensive Case Study 2:
1. Business Acquisition/Investments in Cambodia

  1. Discuss pros and cons, and key tax implications on business acquisition/investments in Cambodia.

2. Debt vs Equity

  1. Discuss pros and cons, and key tax implications on funding of capital/investment in Cambodia through Debt vs. Equity.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Order (Prakas) No. 986 MEF.BK; Instruction No. 10979 GDT
40 In class test
  • Lecture
  • Discussion and question
  • Assignment and quiz
41

Tax Audit and Protest Procedure 1

  1. Explain on the tax audit procedures in Cambodia
  2. Discuss on the different types of tax audits and how to deal with tax auditors during the audit process.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Order (Prakas) on Tax Audit, Order (Prakas) No. 270 MEF.BK.TD, all.
42

Tax Audit and Protest Procedure 2

  1. Discuss on the Procedure to Protest with the tax audit results.
  2. Explain on main contents to be in the Protest Letter.
  3. Explain the recourse available for taxpayers in cases of disagreements on tax audit findings with the GDT.
  4. Explain the procedure for obtain the Certificate of Tax Audit Situation.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Order (Prakas) on Tax Audit, Order (Prakas) No. 270 MEF.BK.TD, all; Order No. 1470.MEF.Prk; Instruction No. 3734.GDT
43

Tax Audit and Protest Procedure 2

  1. Discuss on the Procedure to Protest with the tax audit results.
  2. Explain on main contents to be in the Protest Letter.
  3. Explain the recourse available for taxpayers in cases of disagreements on tax audit findings with the GDT.
  4. Explain the procedure for obtain the Certificate of Tax Audit Situation.
  • Lecture
  • Discussion and question
  • Assignment and quiz

Reading: Order (Prakas) on Tax Audit, Order (Prakas) No. 270 MEF.BK.TD, all; Order No. 1470.MEF.Prk; Instruction No. 3734.GDT
44 Tax Planning: Business Expansion Case Study    Case Study
45 Tax Planning: Construction Projects    Case Study
46 Tax Planning: Manufacturing/Trading/QIP    Case Study
47 Tax Simulation
48 Tax Simulation
49 Tax Simulation
50 Tax Simulation
Total Hours 75 hours

9. TEXTBOOKS AND REFERENCES

Textbook

1. Law on Taxation, promulgated by Royal Kram No. NS/RKM/0297/03 dated
February 24, 1997, and its Amendments.
2. Order (Prakas) No. 009 MEF.Prk on Classification of Taxpayers under the SAR
3. Order (Prakas) No. 543 on Tax on Salary
4. Sub-decree No. 196 on Annual Income Tax and Monthly Salary Tax Thresholds,

5. Order (Prakas) No. 098 Tax on Income
6. Relevant DTA agreements between Cambodia and partner countries
7. Order (Prakas) No. 372.MEF.Prk on amendment of instruction on implementation of withholding
tax on dividend distribution (i.e., Prakas No. 518.MEF.Prk)
8. Explore:OECD website at https://www.oecd.org/
9. Explore: UN-iLibrary at https://www.un-ilibrary.org/
10. Instruction No. 4084.GDT on the rule and procedure to implement DTA
11. Instruction 020.MEF on the procedure for apply E-DTA requests
12. Order (Prakas) No. 559.MEF.PrK on the implementation of VAT for non-taxable supply
13. Instruction No. 1280.GDT on Rules and Procedures for adjusting VAT amount after the time of
supply or issuance of invoices.
14. Instruction No. 9898 GDT on supporting documents as evidence of supply of services for uses
outside of the Kingdom of Cambodia subject to VAT at zero percent rate
15. Sub-Decree 114 on Value Added Tax, all
16. Sub-Decree 65, dated 8 April 2021 VAT on E-commerce
17. Prakas 542.MEF.PrK dated 8 September 2021- on rules and procedures for implementation of VAT
on E-commerce transactions
18. Instruction No. 20522.GDT dated 8 December 2021- on implementing the VAT on E-commerce
transactions
19. Frequently Asked Questions (FAQ) for implementing the VAT on E-commerce transactions
20. Instruction No. 6900.GDT dated 8 April 2022-on VAT reverse charge thru E-filing system
21. Instruction No. 15301 GDT on Implementation of Value Added Tax on Sale of Tangible Fixed Assets
22. Instruction no. 12093 GDT on Additional guideline for Implementation of Value Added Tax (VAT) on
Tangible Fixed Asset (FA)
23. Order (Prakas) No. 597.MEF.PrK on recognition and tax obligations of agents supplying goods or
services on behalf of principal enterprises
24. Instruction No. 4091 GDT on the implementation of the instruction to fill the ToI form.
25. OECD Transfer Pricing Guidelines for Multinational Enterprises and Tax Administrations

2022, Chapter I https://read.oecd-ilibrary.org/taxation/oecd-transfer-pricing-guidelines-for-multinational-enterprises-and-tax-administrations-2022_0e655865-en#page9
26. Order (Prakas) on Rules and Procedure for Allocation of Income and Expenses Among Related
Parties, Order (Prakas) No.986 MEF.BK, all.
27. Instruction No. 10979 GDT on supporting documents for interest between related parties
28. Order (Prakas) on Tax Audit, Order (Prakas) No. 270 MEF.BK.TD, all.
29. Notification No. 4577.GDT dated 9 March 2022 on the extension of CGT implementation
30. Circular No. 1707 on the rules on the recognition of debt and interest dated October 2013
31. Instruction No. 151 on the determination of interest expense of enterprises dated 22 January 2014
32. Instruction No. 11946 on interest rules for related party loan dated 21 August 2018
33. Instruction No. 4909 on supporting documents of interest rate between the related parties dated
18 March 2019

34. IAS 12 Income Taxes: https://www.ifrs.org/issued-standards/list-of-standards/ias-12-income-taxes/

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