Cambodian Taxation (ACCT 551)

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:
There is no prerequisite for this course other than the program entrance requirements.

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
Describe Cambodian Tax System (CK1)
Describe the scope and operations of the Cambodian tax system.		 Understand PK1
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 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 with tax officers about Cambodian tax issues.		 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
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 : Group (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
  • Discussion and question

Reading: Law on Taxation (chapter 1)
2 Cambodian Tax System

  1. Discuss the principle sources of tax law, tax system & hierarchy of registration
  2. Explain the tax incentives for voluntary registration in 2017 & 2018 for Small and Medium Taxpayer
  3. Explain the tax compliance status and benefits
  4. Discuss on double taxation agreement (DTA).
  5. Explain the difference between tax avoidance & tax evasion to be well prepare for tax planning (CK1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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
  • Discussion and question
  • Assignment and Quiz

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
  • Discussion and question
  • Assignment and Quiz

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
  • Discussion and question
  • Assignment and Quiz

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. (CC4)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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 Distribution. (CC1)
 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. Review the withholding tax overview.
  2. Identify common withholding tax issues to avoid troubles during practice. (CC1)
 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. Practice the withholding calculations.
  2. Explain the WHT issues when the recipient receives net amount for saving tax.
  3. Explain the WHT tax rate reduction for DTA.
  4. Explain the WHT rate reduction for micro-finance.
  5. Identify the permitted exemption for WHT in claiming for exemption. (CC1)
 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. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

Reading: Law on Taxation, Section 3, Art 55-84
12 VAT 2

  1. Explain Taxable person, Registration and Obligation to register for tax.
  2. Discuss on cancellation of VAT Registration in accordance with tax rules. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

Reading: Sub-decree on Value Added Tax No.114 ANKR.BK of Royal Government of Cambodia, dated 24 December 1999
13 VAT 3

  1. Discuss on VAT for Investment Enterprise in registration process.
  2. Determine the time and place supply rules to Calculate the VAT to be paid. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

Reading: Sub-decree on Value Added Tax No.114 ANKR.BK of Royal Government of Cambodia, dated 24 December 1999
15 VAT 5

  1. Explain the Input and output taxes.
  2. Discuss the creditable input tax and the non-creditable input tax for calculation of VAT payable. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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.
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. (CC1)
  • Lecture
  • Discussion and Question
  • Assignment and Quiz

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 in details of deductible/non-deductible expenses for certain conditions. (CC1)
  • Lecture
  • Discussion and Quiz
  • Assignment and Quiz

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 limitation for petroleum and mineral resource operation. (CC1)
  • Lecture
  • Discussion and Question
  • Assignment and Quiz

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 subject to limitation.
  2. Explain loss on a claim, provision and prepaid expense, preliminary expense for calculation of tax on income. (CC1)
  • Lecture
  • Discussion and Quiz
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and Quiz
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. Discuss capital vs. debt financing implications for companies and QIPs. (CC1)
  • Lecture
  • Discussion and Quiz
  • Assignment and Quiz

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. Discuss the comprehensive computation of tax on income practical exercise. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. Discuss the comprehensive computation of tax on income practical exercise. (CC1)
  • Lecture
  • Discussion and Quiz
  • Assignment and Quiz

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. Discuss the comprehensive computation of tax on income practical exercise. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. Discuss the comprehensive computation of tax on income practical exercise. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. Discuss the comprehensive computation of tax on income practical exercise with regard to taxation of dividends and transfer of shares. (CC1)
  • Lecture
  • Discussion and Quiz
  • Assignment and Quiz

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. Discuss general rules on capital gain and capital loss and deductible and non-deductible taxes for tax on income calculation. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. Discuss general rules on capital gain and capital loss and deductible and non-deductible taxes for tax on income calculation. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. Discuss the general rules of capital gains and capital loss and deductible and non-deductible taxes for tax on Income calculation. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and Quiz
  • Assignment and Quiz

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 MEFTD 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. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and Quiz
  • Assignment and Quiz

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 Cambodia tax rules. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and Quiz
  • Assignment and Quiz

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 on bookkeeping required by tax rules. (CC1)
  • Lecture
  • Discussion and Quiz
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and Quiz
  • Assignment and Quiz

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. (CC1)
  • Lecture
  • Discussion and question
  • Assignment and Quiz

Reading: General Discussions
47

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

  1. Discuss tax planning for commercial enterprises and QIPs.
  2. Identify common issues, errors and disputes regarding income tax, tax on salary, withholding taxes, and documentation. (CC1)
  • Lecture
  • Discussion and Quiz
  • Assignment and Quiz

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. Anderson Cambodia, Cambodian Tax Student Study Text, Up to December 2025

 

References

1. New Law on Taxation (LOT).
2. Prakas 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- 2020 Financial Management Law.
6. Prakas on Tax on Salary.
7. Sub Decree no. 09 SD.BK dated 13 February 2020.
8. Circular 011 dated 6 October 2016.
9. LOT, Articles 20 and 21; Prakas 098 MEF.Prk on Tax on Income dated 29 January 2020 (TOI Prakas),
Articles 24 and 56.
10. Prakas 638 MEF.Prk dated 4 July 2017.
11. Sub-Decree 114 ANKr.BK dated 24 December 1999.
12. Instruction 1127 GDT dated 26 January 2016.
13. Instruction 21606 GDT dated 26 December 2016.
14. Prakas No. 270 MEF.PrK dated 13 March 2019 on Tax Audit.
15. Prakas No. 098 MEF.PrK dated 29 January 2020 on Tax on Income.

Education Resources