Cambodia tax department asks gambling companies to pay their tax

Cambodia’s tax division, the General Department of Taxation (GDT) of the Ministry of Economy and Finance (MEF) is asking commercial gambling operators to file their taxes while fulfilling any outstanding financial obligations they may have with the government. Both parastatals warn that erring businesses will face the wrath of the law.

In a bid to encourage businesses especially in its infamous gambling industry, Cambodia is asking operators to file their tax returns while assuring them of tax incentives including zero fines such as additional tax charges or interest. Last Wednesday, Minister of Finance Aun Pornmoniroth clarified that there will be no sanction on commercial gambling operators who file their tax returns and pay taxes on their non-commercial sales.

He added that instead of being sanctioned for mistakes in filing their tax returns and paying their taxes, commercial gambling owners who do it voluntarily will be let off the hook and rather helped to do the right thing. The grace period for this starts from the date the statement of notification was signed till next month’s ending.

Experts have lauded this incentivisation of tax payments as being a boon for Cambodia’s economy. One Khun Darith, Managing Partner of auditing firm K Professional Accountants (KPA) told the Khmer Times that the voluntary filing of taxes on non-commercial transactions is good for both the businesses and the government.

Cambodia is looking to clean up its gambling reputation in international circles, and as such it is starting with clearing up grey areas of its gambling taxation laws. Henceforth, commercial gambling operators will know to pay taxes on revenue from transactions from hotels, restaurants, massages, karaokes, marts, space rental and souvenir shops.

“It is a very good strategy to collect more tax revenue as even though they would not be fined or penalized, they would pay taxes for their previous these non-gambling transactions and after they start doing so, they would continue and so the government would collect more revenue in the future,” Khun Darith told the publication.

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