Double Taxation Reforms Sought with More Countries
Tax officials of Cambodia and Philippines are holding third of round of negotiation in DTA. Photo: GDT
- By Ou Sokmean
- April 19, 2024 5:10 PM
PHNOM PENH – Negotiations on double taxation agreements (DTA) with seven countries are underway in a move to attract investment and promote competitiveness.
Talks are taking place with the Philippines, Laos, Myanmar, France, Japan, Morocco and the United Arab Emirates, the General Department of Taxation (GDT) says.
The GDT said agreements to avoids double taxation play an important role in attracting foreign direct investment and increasing competitiveness while providing confidence and certainty to foreign investors.
Benefits include measures to determine taxation rights between parties and reduction of certain tax types.
Such agreements also prevent or eliminate tax discrimination between domestic and foreign companies, provide mechanisms for resolving fiscal disputes as well as mechanisms for exchanging information on tax evasion, it said.
Hong Vannak, an economic researcher at the Royal Academy of Cambodia, said dual taxation agreements provide mutual benefits for the parties, particularly by reducing the cost of a goods produced in one country and sold in another.
He said double taxing the same goods leads to significant cost increases which discourage trade.
Cambodia has DTAs with Singapore, China, Brunei, Thailand, Indonesia, Vietnam, Hong Kong Special Administrative Region, Malaysia, South Korea, Macau Special Administrative Region and Turkey.
