Taxation
“Notification No. 8716 GDT, dated 18 May 2021, on the Date of Submitting U.S. Reportable Accounts for the Calendar Year 2020 of the Banks, Insurers and Financial Institutions”
Based on this Notification, the Cambodian General Department of Taxation requires all commercial banks, insurance enterprises and financial institutions, who fall under the reporting obligations of the agreement entered into between the Royal Government of Cambodia and the United States, to better international tax compliance, as well as to comply with the Foreign Account Tax Compliance Act (FATCA) of the United States of America, all banks, insurance enterprise and financial institutions are required to submit U.S. reportable accounts for the calendar year 2020 to the U.S. Internal Revenue Service-IRS through the General Department of Taxation within 30 July 2021. Additionally, the report shall follow IRS’s standard.
Failure to report, banks, insurance enterprises and financial institutions will risk being penalized by FATCA, agreement entered into between Cambodia and the United States, as well as this Notification.
Corporate and Commercial
❶ “Notification No. 1143 of 26 May 2021, issued by the Ministry of Commerce, on the Issuance of E-Commerce Permit or License”
Cambodian Ministry of Commerce, on 26 May 2021, issued a Notification requiring all individuals and legal entities, including foreign entities, doing business in e-commerce spheres to apply for e-commerce permits and licenses with the Department of Commercial Registration of the General Department of Commercial Services of the Ministry of Commerce.
E-Commerce license and permit is regulated by the Department of Commercial Registration, General Department of Commercial Services. Application could be done through website: www.ecommercelicensing.moc.gov.kh. Any individual or legal entity doing business in e-commerce without permit or license will be financially penalized based on the relevant regulation.
❷ “Ministerial Prakas No. 316, dated 12 May 2021, on Financial Penalties under the Supervision of the Ministry of Commerce”
On 12 May 2021, the Ministry of Economy and Finance and the Ministry of Commerce jointly issued an Inter-Ministerial Prakas, regarding the financial penalties under the supervision of the Ministry of Commerce. The financial penalties are imposed based the Law on Commercial Rules and Commercial Registers, Law on Trade Marks, Trade Names and Acts of Unfair Competition, Law on Commercial Enterprises and Law on
E-Commerce and other regulations being in force in the Kingdom of Cambodia.
The amount of penalties are as the following:
| Description of Breach | Amount of Financial Penalty (in Khmer Riels) | Amount of Financial Penalty (in US Dollars) * |
|---|---|---|
| Failure to register in any amendment at the Ministry of Commerce | 1,000,000 | 247 |
| Failure to file annual declaration of commercial enterprise | 2,000,000 | 494 |
| Providing false information and faking other required documents to register company | 1,000,000 | 247 |
| Operating e-commerce business without license or permit | 10,000,000 | 2,468 |
| Providing false information on the report, minutes or other documents of the company which need to be filed with the Ministry of Commerce | 2,000,000 | 494 |
| Failure to submit copy of financial report to be filed with the Ministry of Commerce | 2,000,000 | 494 |
| More than 6-month late application to re-register mark | 200,000 | 50 |
Should you have any further inquiries or require any assistance, please let us know.
Yours sincerely,
Somphob Rodboon
Managing Partner
Somphob.R@ilawasia.com
ILAWASIA Co., Ltd.
Vicheka Lay
Partner
Vicheka.Lay@ilawasia.com
ILAWASIA Co., Ltd.
Huyching Cheang
Associate
Huyching.C@ilawasia.com
ILAWASIA Co., Ltd.
