LEGAL SUMMARY

SUBJECT  Creation of Special Tax Audit Unit under the Supervision of the General Department of Taxation

REGULATION AND OBJECTIVES OF SPECIAL TAX AUDIT UNIT

On July 16, 2024, the Cambodian Prime Minister signed into law Sub-Decree No. 160 ANKr.BK, establishing a special tax audit unit under the supervision of the General Department of Taxation (GDT) within the Ministry of Economy and Finance. This strategic move aims to address and expedite the resolution of various taxpayer challenges related to tax audits.

The creation of this specialized unit is expected to enhance the business and investment environment in Cambodia by streamlining the tax audit process and providing more efficient support to taxpayers. By addressing audit-related issues more promptly, the government hopes to foster a more transparent and predictable tax landscape, thereby boosting investor confidence and encouraging economic growth.

 FUNCTION AND AUTHORITIES

The unit’s core responsibilities include managing and conducting tax audit operations in strict compliance with the applicable tax regulations, and adhering to the established guidebook on tax audit formalities and procedures for both tax officers and taxpayers under its jurisdiction, including conducting risk assessments and analyses to ensure that comprehensive audits are efficiently conducted only once per taxpayer. The unit is also responsible for preparing an annual tax audit plan and issuing notifications to enterprises that are subject to special tax audits.

Furthermore, the special unit is empowered to request the Director General of the GDT to review and resolve any outstanding issues that have not yet been settled by the GDT.

JURISDICTION

The unit’s jurisdiction will cover enterprises that have been awarded the gold tax compliance certificate, as well as other enterprises identified by a committee to be established by the GDT under the Ministry of Economy and Finance.

AUTHORS

Vicheka Lay,   Partner

Tanadee Pantumkomon,    Partner

Makara Um,     Associate

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