The General Department of Taxation (GDT) and the Garment Manufacturers Association in Cambodia (GMAC) on Tuesday co-organized a seminar on the Prakas on Rules and Procedures for Income Tax and other Taxes relating to Cut, Make and Trim (CMT) of Qualified Investment Projects (QIP) to disseminate the latest information and explain the Prakas on CMT filing of tax return to GMAC members.
The workshop attracted 1,000 companies, members of GMAC, who are producers of garments and footwear from imported raw materials that are involved in production facilities known as the CMT business model.
Kong Vibol, director general of the GDT, said the department had several meetings with the GMAC to discuss on the taxes on the CMT factories. Currently, the GDT imposes tax on freight on board (FOB) materials.
“GDT had a meeting with the GMAC and worked together to propose policies to the Ministry of Economy and Finance (MEF) and the ministry have implemented these policies that will facilitate the textile sector in Cambodia.
“And this seminar is to help participating CMT enterprises to understand how to calculate the taxes,” Mr Vibol said.
Ken Loo, GMAC secretary-general, said the purpose of the seminar was also to disseminate the latest information and explain the Prakas on CMT filing of tax returns to GMAC members.
“Most factories here actually operate on a CMT basis and the Prakas will allow them to more accurately file their tax returns,” Mr Loo said.
According to MEF’s Prakas, the purpose is to provide incentives for local industries to promote export and create jobs in the Kingdom.
The objective is to introduce a rule and procedure for implementing income tax and other taxes related to the activity of CMT QIP, including the garment, textile, footwear, bag, hand bag and hat factories.