Cambodia will soon sign double taxation agreements (DTAs) with Laos and the Philippines, as it has completed technical procedures for the deals, the General Department of Taxation (GDT) said.

The Kingdom is working with seven countries on DTA to enhance its appeal for foreign direct investments and sharpen international competitiveness.

The seven countries are the Philippines, Laos, Myanmar, France, Japan, Morocco, and the United Arab Emirates, said Bun Nary, GDT Deputy Director-General.

“Two DTAs have been completed at a technical level and are being prepared for signing soon — between Cambodia and Laos and Cambodia and the Philippines,” Nary said during a workshop on the Exchange of Information on DTA agreements on August 27.

DTA not only avoids double taxation but also plays an important role in attracting foreign direct investment and increasing international competitiveness, she said.

“Understanding the DTA procedures is important to ensure the full implementation of taxation policies with transparency, accountability and efficiency, particularly in compliance with tax law,” Nary said.

GDT focuses on interior taxes such as income tax, salary tax, value-added tax and property tax.

The GDT earned $1.7 billion in taxes in the first half of this year, representing 48 percent of the target set for 2024.

Currently, Cambodia has implemented DTAs with Singapore, China, Thailand, Brunei, Vietnam, Indonesia, China’s Hong Kong Special Administrative Region, Malaysia and South Korea.

DTA can encourage investors as they need not pay taxes twice if they have already paid in one country. It also expedites the flow of trade between partner countries.

DTA helps the country’s trade and investment activities, said Lim Heng, Vice-President of the Cambodia Chamber of Commerce.

“The agreement is important for investors. Under this agreement, they can avoid paying double tax — here and in their respective countries –when they transfer money,” Heng told Khmer Times.

Source Khmer Time