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Learn DTAs, Says Kith Meng

Khmer Times Share:
Cambodia Chamber of Commerce President Kith Meng points as Deputy Prime Minister Sar Kheng looks on, following a groundbreaking ceremony for a development project. KT/Mai Vireak

A sound understanding of double taxation avoidance agreements (DTAs) between Cambodia and other countries is crucial to lower barriers to promote cross-border investments and boost trade and economic flows between the Kingdom and its partner countries, said the president of the Cambodia Chamber of Commerce (CCC).
Kith Meng, president of CCC yesterday addressed a gathering of more than a hundred local businessmen and investors at a joint workshop organized by CCC and the General Department of Taxation on the key concept of DTAs between Cambodia and other countries.
“As the Cambodian economy continues to grow, the country will see many Cambodian based businesses expanding and investing overseas. And it is important for them to understand these agreements in order to avoid double taxation,” said Mr. Meng.
“These agreements will facilitate reduction of taxes on all forms of income flows arising from cross-border business activities by way of avoiding double taxation,” he said. “DTAs will lower barriers to cross-border investment and boost trade and economic flows between our partner countries.”  
Mr. Meng pointed out that DTAs would help set up a framework that would not only improve the country’s tax collection but also increase foreign direct investment in Cambodia.
“Foreign investors will have the incentive to come to Cambodia as they would not be subjected to paying tax on income both in Cambodia and their home country.”
A DTA is a bilateral agreement between two countries to avoid double taxation which is the outcome of the application of their respective domestic tax laws on a single tax payer’s income.
David Van, managing director of Bower Group Asia in Cambodia told Khmer Times that Cambodia was making serious efforts to sign as many DTAs as possible with its counterparts, which proved that the Kingdom was moving forward in the right direction to attract foreign investors, by winning their confidence and trust.
“I would simply say Cambodia is sending the right signal while projecting a more professional business environment in the country,” said Mr. Van.
“This offers a specific comfort zone in terms of ‘protection’ to foreign firms investing and doing business in the country to show that Cambodia is making an effort to be ‘on par’ with international norms of doing business and protecting investors,” he added.
Cambodia already signed a DTA with Singapore on May 20 to cover all forms of income flows arising from cross-border business activities and minimizing double taxation on such income.

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