CAMBODIAN TAXATION (ACCT 351)

OVERVIEW

1. COURSE DESCRIPTION

This course teaches knowledge and skills relating to the tax system as applicable to individuals and companies. The students will use the knowledge gained from the class to identify which taxes should be relevant applied to individuals or companies. 

In this course, assessments include a quiz, tax simulation in which students will prepare monthly tax declarations for local companies and final exams.

2. REASON FOR THE COURSE

Accountants and (or) tax consultants must be able to prepare monthly tax returns and tax on income for a company. In Cambodia, Tax laws have been updated from time to time. Therefore, program graduates will be preparing tax returns and solving tax issues following Cambodian tax law and regulation. 

3. STUDY HOURS

4. ROLE IN CURRICULUM

Prerequisites:
Students must have successfully passed Financial Accounting 1 (ACCT 211) and Financial Accounting 2 (ACCT 212) before attempting this course.

SKILLS

  • COURSE LEARNING OUTCOMES (CLO)
  • 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
Describe Cambodian Tax System (CK1)
Describe the scope and operations of the Cambodian tax system.
Understand PK3
Cognitive Skills Level of Learning Related
PLO
Apply Tax Liabilities in Cambodia (CC1)
Apply monthly tax returns and tax on income for business in Cambodia in compliance with Cambodian tax law and regulations.
Apply PC3
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 with tax officers about Cambodian tax issues.
Characterize PICT1

6. ASSESSMENT AND GRADING

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

SKILL Assessment Skill Weighting for Grade
Quiz Tax 
Simulation
Final 
Exam
Describe 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 primarily lecture, case study, activity and simulation based. Assigned readings will support learning and serve as a reference to materials covered in class. During class, approximately one hour of the total class will be devoted to lecture or case study discussion with another 30 minutes of the class will be for practice and other activities. During the course students will undergo a comprehensive tax simulation.

Tax Simulation 1 : Group (Monthly Tax Declaration)
Tax Simulation 2 : Individual (E-filing, Monthly Tax Declaration)
Tax Simulation 3 : Group (Annual Tax on Income)
Tax Simulation 4 : Individual (Annual Tax on Income)

8. STUDY PLAN

The course targets the 50 lessons in the study plan below. Each lesson 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

  1. Describe the function and purpose of taxation.
  2. Describe the GDT Structure.
  3. Discuss the different types of taxes in Cambodia. (CK1)
Lecture (T)
Discussion and question

Reading: Law on Taxation (chapter 1)

2

Cambodian Tax System

  1. Explain the tax incentives for voluntary registration in 2017 and 2018 for small and medium taxpayers.
  2. Explain the tax compliance status and benefits
  3. Explain the difference between tax avoidance and tax evasion to be well prepared for tax planning & double taxation agreement (DTA). (CK1)
Lecture (T)
Discussion and question

Reading: Law on Taxation (chapter 1)

3

Tax on Salary 1

  1. Describe the scope of tax on salary (TOS).
  2. Identify the income subject to tax on salary for tax calculation.
  3. Calculate the basic salary tax for employees in accordance with tax rules. (CC1)
Lecture (T)
Discussion and question

Reading: Law on Taxation (chapter 2)

4

Tax on Salary 2

  1. Explain the comprehensive computation of tax on salary. 
  2. Identify the allowance, fringe benefits, reimbursements subject fringe benefit tax (FBT) for tax calculation. (CC1)
Lecture (T)
Discussion and question

Reading: Law on Taxation (chapter 2)

5

Tax on Salary 3

  1. Calculate tax for allowance, fringe benefits, reimbursements in accordance with tax rules.
  2. Explain the conditions and computation of foreign tax credit to claim tax credit against tax on salary. (CC1)
Lecture (T)
Discussion and question

Reading:
Order (Prakas) on Tax on Salary, Order (Prakas) No. 1173

6

Tax on Salary 4

  1. Calculate the foreign tax credit.
  2. Plan for tax on salary for saving tax for employer and employee. (CC1)
Lecture (T)
Discussion and question
Quiz (A)

Reading:
Order (Prakas) on Tax on Salary, Order (Prakas) No. 1173, all.

7

Withholding Tax 1

  1. Describe withholding tax collection and payments.
  2. Identify types of relevant income/payments subject to withholding tax for calculation of tax. (CC2)
Lecture (T)
Discussion and question

Reading: Law on Taxation (Article 25-27, 33-35, 38-39, and 88)

Order (Prakas) Tax on Profit (section 1.3-1.5, 8.2-8.7, 9.3)

8

Withholding Tax 2

  1. Compute withholding tax based on tax rules. 
  2. Explain WHT implications of Dividend Distributions. (CC2)
Lecture (T)
Discussion and question
Reading: Law on Taxation (Article 25-27, 33-35, 38-39, and 88)

Order (Prakas) Tax on Profit (section 1.3-1.5, 8.2-8.7, 9.3)

9

Withholding Tax 3

  1. Identify 9common withholding tax issues to avoid troubles during practice. (CC2)
Lecture (T)
Discussion and question
Reading: Law on Taxation (Article 25-27, 33-35, 38-39, and 88)

Order (Prakas) Tax on Profit (section 1.3-1.5, 8.2-8.7, 9.3)

10

Withholding Tax 4

  1. Calculate withholding tax.
  2. Explain WHT issues when the recipient receives a net amount for saving tax.
  3. Explain the WHT tax rate reduction for DTA, WHT rate reduction for micro-finance​ and permitted exemption for WHT  in claiming for exemption
Lecture (T)
Discussion and question
Quiz (A)
Reading: Law on Taxation (Article 25-27, 33-35, 38-39, and 88)

Order (Prakas) Tax on Profit (section 1.3-1.5, 8.2-8.7, 9.3)

11

VAT 1

  1. Describe the scope of VAT.
  2. Identify taxable supply and non-taxable supply to apply the applicable VAT rate. (CC3)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Section 3,Art 55-84

 12

VAT 2

  1. Identify taxable persons and explain their obligation to register for tax.
  2. Describe the process of cancellation of VAT registration in accordance with tax rules. (CC3)
Lecture (T)
Discussion and question

Reading: Sub-decree on Value Added Tax No.114 ANKR.BK of Royal Government of Cambodia, dated 24 December 1999

 13

VAT 3

  1. Describe the VAT registration process for investment enterprises.
  2. Determine  the time and place of supply rules to calculate the VAT to be paid. (CC3)
Lecture (T)
Discussion and question

Reading: Sub-decree on Value Added Tax No.114 ANKR.BK of Royal Government of Cambodia, dated 24 December 1999

14

VAT 4

  1. Explain the time of supply of goods and services to determine the time to issue an invoice.
  2. Discuss applicable VAT rates and tax bases to calculate tax payable properly. (CC3)
Lecture (T)
Discussion and question

Reading: Sub-decree on Value Added Tax No.114 ANKR.BK of Royal Government of Cambodia, dated 24 December 1999

 15

VAT 5

  1. Define input and output taxes.  
  2. Discuss creditable input tax and non-creditable input tax for calculation of VAT payable. (CC3)
Lecture (T)
Discussion and question

Reading: Sub-decree on Value Added Tax No.114 ANKR.BK of Royal Government of Cambodia, dated 24 December 1999

 16

VAT 6

  1. Explain mixed taxable and non-taxable supply input tax to determine allowable VAT input credits. (CC3)
Lecture (T)
Discussion and question

Reading: Order (Prakas) No. 288 dated 31 Mar 2000 on Credit for Using Telephone in Business.

Order (Prakas) No.605 dated 01 Sep 2000 Value Added Tax on Electricity Power.

17

VAT 7

  1. Discuss VAT refund procedures.
  2. Explain the conditions of a tax invoice in order to claim VAT credits.
  3. Explain the valuation of supplies and imports in order to calculate VAT on imports. (CC3)
Lecture (T)
Discussion and question

Reading: Order (Prakas) No.312 MEF.PK dated 19 March 2014 on the implementation VAT on import and supply of certain goods

18

VAT 8

  1. Discuss VAT for real estate, free goods and international transport to apply VAT on invoices. (CC3)
Lecture (T)
Discussion and question

Reading: No.114 ANKR.BK of Royal Government of Cambodia, dated 24 December 1999 Sub-decree on Value Added Tax.

Order (Prakas) No.1031 MEF VAT 24 Dec 1998 on Value Added Tax.

 19

VAT 9

  1. Discuss zero-rating of export of goods and services, VAT state charge  and special treatment of VAT on transfer of a business. (CC3)
Lecture (T)
Discussion and question

Reading: Order (Prakas) No.312 MEF.PK dated 19 March 2014 on the implementation VAT on import and supply of certain goods

 20

VAT 10

  1. Explain the adjustment of VAT and VAT carried forward or refunds for a company and investment enterprise. (CC3)
Lecture (T)
Discussion and question
Quiz (A)

Reading: No.114 ANKR.BK of Royal Government of Cambodia, dated 24 December 1999 Sub-decree on Value Added Tax.

21

Tax on Income 1

  1. Discuss the scope of tax on income.
  2. Explain residency, real regime, estimated regime to be taxed on income. 
  3. Explain QIP implications with regard to tax on income. (CC4)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the tax on profit

Order (Prakas) on Tax on Profit,
Order (Prakas) No.1059 MEF.BK.TD,.

 22

Tax on Income 2

  1. Explain tax rate, tax year, taxable profit/ incomes, deductible/non-deductible expense for basic calculation of tax on income. 
  2. Explain briefly on taxable income for petroleum and mineral resource operation.
  3. Explain briefly on taxable income for NGOs and insurance companies. (CC4)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Profit
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, all.

 23

Tax on Income 3

  1. Discuss deductible/non-deductible expenses. (CC4)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Profit
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, all.

 24

Tax on Income 4

  1. Calculate the allowable charitable contribution, limitation of interest expense for a company including interest limitations for petroleum and mineral resource operations. (CC4)
LLecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Profit
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, all.

 25

Tax on Income 5

  1. Identify non-deductible expenses, deductible but subj25ect to limitation
  2. Explain the treatment of loss on a claim, provisions, prepaid expense and preliminary expense for calculation of tax on income. (CC4
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Profit
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, all.

26

Tax on Income 6

  1. Describe tax depreciation rules.
  2. Explain taxation for leases and tax on the transfer of buildings for tax calculations. (CC4)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Profit
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, all.

27

Tax on Income 7

  1. Explain special depreciation (SD), carry forward of losses and foreign tax credits.
  2. Explain the tax loss rules including rules for petroleum and mineral resource operations.
  3. Explain WHT credit for deductions against the tax on income at the end of tax year. (CC4)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Profit
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, all.

28

Tax on Income 8

  1. Explain capital vs. debt financing tax implications for companies and QIPs. (CC4)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Profit
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, all.

29

Tax on Income 9

  1. Carry out a comprehensive computation of tax on income. (CC4)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Profit
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, all.

 30

Tax on Income 10

  1. Carry out a comprehensive computation of tax on income. (CC4)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Profit
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, all.

31

Tax on Income 11

  1. Carry out a comprehensive computation of tax on income. (CC4)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Profit
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, all.

32

Tax on Income 12

  1. Carry out a comprehensive computation of tax on income. (CC4)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Profit
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, all.

33

Tax on Income 13

  1. Carry out a comprehensive computation of tax on income with regard to taxation of dividends and transfer of shares. (CC4)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Profit
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, all.

34

Tax on Income 14

  1. Explain rules of capital gains and capital loss and deductible and non-deductible taxes for tax on income calculation. (CC4)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Profit
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, all.

35

Tax on Income 15

  1. Explain rules of capital gains and capital loss and deductible and non-deductible taxes for tax on income calculation. (CC4)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Profit
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, all.

36

Tax on Income 16

  1. Explain rules of capital gains and capital loss and deductible and non-deductible taxes for tax on income calculation. (CC4)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 1, Provision for the Tax on Profit
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, all.

37

Prepayment of Profit tax

  1. Explain and calculate the prepayment of income tax (PTOI) in accordance with cambodia tax rules. (CC5)
Lecture (T)
Discussion and question
Quiz (A)

Reading: Article 28 (New) of Law on Taxation
Order (Prakas) No.001 MEFTD dated 02 Jan 2001 on the payment of prepayment tax on profit.

Order (Prakas) No.305 MEFPTD dated 23 April 2008 on the suspension of prepayment tax on profit for garments and shoes procedures for export
Order (Prakas) No.988 MEFPK dated 23 Nov 2011 delayed the suspension of prepayment tax on profit for garment and shoes procedure for export
Order (Prakas) No.483 MEFPK dated 29 May 2009

38

Public lighting tax

  1. Explain and calculate the public lighting tax (PLT) in accordance with cambodian tax rules. (CC5)
Lecture (T)
Discussion and question

Reading: Inter-ministries Order (Prakas) on management and collection of Public Lighting Tax No.583 MEFTDPK dated 30 July 1999
Notification Letter on management and collection of Public Lighting Tax No.004 MEF dated 09 January 2002

39

Specific tax on certain merchandise and services/excise tax

  1. Explain and calculate the specific tax (SPT) on certain merchandise and services/excise tax in accordance with cambodian tax rules. (CC5)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 4, Art 85
Order (Prakas) No.341 dated 36 May 1997 on the specific tax (SPT) on certain merchandise and services
Sub-decree No.24, 03/03/2006, the amendment SPT rate custom duty and SPT on telecom service
Order (Prakas) No.114,19/02/2010 on the revised SPT rate for local beer procedures
Order (Prakas) No.153, 15/02/2001, SPT On entertainment services
Order (Prakas) No.1133 dated 25/12/2003, the guidance for implementation SPT

40

Accommodation tax

  1. Explain and calculate the Accommodation Tax in accordance with Cambodia tax rules. (CC5)
Lecture (T)
Discussion and question

Reading: Order (Prakas) 380 MEFTD dated 14 July 2005 on implementation of Accommodation Tax
Order (Prakas) 601 MEFPK dated 23 Sep 2005 on the postponement of the implementation of Accommodation Tax

41

Immovable Property tax

  1. Explain and calculate the tax on immovable property in accordance with cambodian tax rules. (CC5)
Lecture (T)
Discussion and question

Reading: The Financial Act of 2010, Art 13-17
Order (Prakas) No.493-MEF, dated 19/07/2010 on the collection of Property Tax
Order (Prakas) No.494-MEF, dated 19/07/2010 on the creation of a property valuation committee for the Property Tax
Order (Prakas) No.371-MEF, dated 5/2011 on the basis for tax calculation of the immovable property

42

 Obligation of Taxpayers 1

  1. Explain the registration and monthly and annual tax filing in accordance with tax rules. (CK2)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 5, Provision on tax rules and procedures
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, Chapter 13

43

Obligation of Taxpayers 2

  1. Describe bookkeeping required by tax rules.    (CK2)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 5, Provision on tax rules and procedures
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, Chapter 13

44

Obligation of Taxpayers 3

  1. Discuss the rights of taxpayers, powers of the tax authority and tax audit procedures for compliance with tax rules. (CK2, CIP1)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 5, provision on tax rules and procedures
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, Chapter 13

45

Obligation of Taxpayers 4 

  1. Discuss penalties and the enforcement system of tax payments and dates and procedures for appeals and disputes with tax authority. (CK2, CIP1)
Lecture (T)
Discussion and question

Reading: Law on Taxation, Chapter 5, provision on tax rules and procedures
Order (Prakas) on Tax on Profit, Order (Prakas) No.1059 MEF.BK.TD, Chapter 13

46

Tax Avoidance, Common Tax Issues, Errors, Disputes and Resolutions (1)

  1. Discuss tax planning for commercial enterprises and QIPs.
  2. Identify common issues, errors and disputes regarding tax on profit, tax on salary, withholding taxes, and documentation. (CK2, CIP1)
Lecture (T)
Discussion and question

Reading: general discussions

47

Tax Avoidance, Common Tax Issues, Errors, Disputes and Resolutions (2)

  1. Discuss tax planning for commercial enterprises and for QIPs.
  2. Identify common issues, errors and disputes regarding income tax, tax on salary, withholding taxes, and documentation. (CK2, CIP1)
Lecture (T)
Discussion and question
Quiz (A)

Reading: general discussions

48 Review and Preparation for Final Exam. (All CLOs) Lecture
Discussion and question
49 Review and Preparation for Final Exam. (All CLOs) Lecture
Discussion and question
50 Review and Preparation for Final Exam. (All CLOs) Lecture
Discussion and question
  Total Hours  75 hours

9. TEXTBOOKS AND REFERENCES

Textbook

  1. VDB Loi Cambodia, Cambodian Tax Student Study Text, Up to December 2024

Examinable Document References

  1. Law on Taxation (LOT) dated May 2023 as amended.
  2. Ministerial Order 701 MEF. Prk on Tax Registration and Information Update of Taxpayers dated 14 August 2020 (Prakas 701).
  3. Prakas 025 MEF.Prk on Reclassification of Taxpayers under Self-Declaration Regime dated 24 January 2018.
  4. 2016 Financial Management Law dated 17 December 2015.\
  5.  2017 Financial Management Law, dated 15 December 2016
  6.  2018 Financial Management Law dated 09 December 2017
  7.  2019 Financial Management Law.dated 14 December 2018
  8.  2020 Financial Management Law.dated 21 December 2019
  9. Prakas on Tax on Salary dated 31 December 2003.
  10. Sub Decree no. 09 SD.BK dated 13 February 2020 on annual income tax and monthly salary tax.
  11. Circular 011 dated 6 October 2016 on the implementation of obligation to Withhold Tax on Fringe Benefits.
  12. Prakas 098 MEF.Prk on Tax on Income dated 29 January 2020 (TOI Prakas), Articles 24 and 56.
  13. Prakas No. 638 MEF. Prk on the criteria of improper accounting records and procedures for paying Minimum Tax dated 4 July 2017.
  14. Sub-decree 114 ANKr.BK dated 24 December 1999 on VAT, decided by the RGC.
  15. Instruction No. 1127 GDT dated 26 January 2016 on the use of invoices for taxpayers registered under the Self-Declaration Regime.
  16. Instruction No. 21606 GDT dated 26 December 2016 on the use of invoices for taxpayers registered under the Self-Declaration Regime.
  17. Prakas No. 270 MEF.PrK on Tax Audit dated 13 March 2019.
  18. Prakas No. 098 MEF.PrK on Tax on Income dated 29 January 2020.