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NagaWorld Reaches Tax Deal

May Kunmakara / Khmer Times Share:

NagaWorld, a subsidiary of a Hong Kong-listed NagaCorp, reached a deal with the Ministry of Economy and Finance to pay a new tax rate on their non-gaming operations, said a ministry official.
Ros Phirun, deputy director-general of the finance industry department at the Ministry of Economy and Finance, said NagaWorld agreed with the new tax rate computed by the ministry’s technical team after they completed the audit of the casino’s business expansion and its other non-gaming operations.
“The management of NagaWorld already agreed on the revised tax rate over their business operation and have agreed to pay us another $16.6 million for this year, in addition to the base rate [of some $6 million]. In total we will get from them about $23 million this year,” Mr. Phirun said.
Mr. Phirun said that previously the government only charged NagaWorld a base rate on their business operation since the hotel had not been fully functional. Last year, he said, NagaWorld paid the government about $15 million in taxes.
“Now their business operation is fully functional, both in gaming and non-gaming operations. Because of that, they have agreed to pay us a new revised tax rate,” he added.
According to Mr.Phirun, the revenue from NagaWorld represented around 50 percent of total gaming revenue and it kept increasing year-on-year.
“With this new revised tax for NagaWorld’s business operation, we hope to collect more tax soon when they launch their Naga2. But we have to wait and see the reality, first,” he added.
Tim McNally, the chairman of NagaCorp told GGR Asia, a web portal focusing on the Asian sector of the casino industry earlier last month that his company was happy to cooperate with local authorities over his subsidiary’s operations in Cambodia.
“We don’t have any comment on taxation matters, but we are very cooperative with the [Cambodian] government in all aspects of our business. We are aware they are going to pass a new gaming law in the near future, and we expect Cambodia will have a tax-competitive jurisdiction,” he said.
NagaWorld recorded gross gaming revenue growth of 10 percent in the first half of the year, according to its financial report. While NagaCorp’s net profit went up by 24 percent year-on-year in the first half of the year to $125.2 million, VIP market revenue went up four percent to $111.6 million. The VIP sector increased by 26 percent to $4.5 billion.
 As of June 30, 2016, NagaWorld had 296 gaming tables and 1,662 electronic gaming machines in place.

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