New tax debt collection measures in Cambodia.
The General Department of Taxation (GDT) has released new Notification no. 28622.GDT dated 28 November 2022.
Based on the existing tax provisions, the General Department of Taxation (GDT) has the right to:
- Freeze a bank account
- Stop export-import operations
- Issue a letter to the competent Authorities requesting them to nullify various permits or licenses of the taxpayers etc.
If a taxpayer fails to settle tax debts by the required timeframe (i.e., 15 days after receiving the reminder letter of notification for tax collection).
However, the GDT has not fully implemented these tax provisions. Instead, the GDT, in practice, may only suspend the renewable of Patent and VAT certificates if a taxpayer has not cooperated in resolving the tax debts. In addition, to pressure a taxpayer to cooperate in resolving tax debts, the GDT has also issued an invitation letter and uploaded it to the GDTs’ social media platforms (e.g., Facebook or Telegram). However, some taxpayers still have not taken action on their outstanding tax debts.
Therefore, the GDT has issued this Notification no. 28622 dated 28 November 2022 to inform a taxpayer concerning additional measures if a taxpayer does not cooperate in resolving the tax debts by the end of this year, 2022.
These measures are:
- Temporarily suspend the value-added tax (VAT) certificate, therefore not allowing for tax refund requests or tax credit usage
- Temporarily suspend the Stamp Duty payment of the immovable property transfer
- Cooperate with the General Department of Customs and Excise of Cambodia to stop export-import operations
- Cooperate with competent Authorities to temporarily stop or suspend the operations of an Enterprise
- Cooperate with the National Bank of Cambodia to freeze the bank accounts of an Enterprise or/and the relevant person
- Cooperate with the Ministry of Commerce to suspend any new Enterprise registration or/and share transfer with common shareholders
- Cooperate with the competent Authorities to nullify permits or other licenses; and
- File a complaint to the court for an Enterprise having tax debt that it refuses to settle
We would like to inform you that such measures for tax debt collection are in line with existing tax provisions.
These measures should be imposed on a taxpayer who ignores the tax reassessment imposed by the GDT. However, if the GDT issues a Tax Reassessment Notice and you have filed an objection letter following the GDT’s requirement on the basis that you disagree with the reassessed taxes, you should not be subject to the above measures.
Therefore, we suggest you review the Tax Reassessment Notice(s) imposed by the GDT and take action as soon as possible or, at the latest, by the end of this year to avoid the above measures imposed by the GDT.
Please do not hesitate to contact us if you require further clarification or wish to discuss the above matters in more detail.
Mr. Seng Pov
Head of Tax
m. +855 (0) 12 53 34 32
t. +855 (0) 23 21 59 60