Cambodia Tax Alert: Promugation of the New Law on Taxation

On the 16th of May 2023, the New Law on Taxation (“New Taxation Law”) was promulgated by Royal Kram No. NS/RKM/0523/004.

The New Taxation Law abrogates the Law on Taxation, promulgated by Royal Kram No. NS/RK/0297/03, dated February 24, 1997 (“Former Taxation Law”), and the Law on Amendment to the Law on Taxation, promulgated by Royal Kram No. NS/RK/0303/010, dated March 31, 2003.

The New Taxation Law consists of 20 Chapters and 255 Articles – a significant increase from the Former Taxation Law which consisted of 7 Chapters and 155 Articles.

While the New Taxation Law does not reflect a complete overhaul of the existing tax framework in Cambodia, the increase in Chapters and Articles are indictative of the underlying objective to fill in gaps and ensure consistency by centralizing existing tax regulations, international tax agreements and practices under the one law.

We set out below some of the key features of the New Taxation Law
New Chapters
As noted above, one of the main objectives of the New Taxation Law is to centralise information regarding the application and calculation of taxes under one regulation. This has resulted in the creation of additional chapters in the New Taxation Law dealing with Specific Tax, Public Lighting Tax, Accomodation Tax, Patent Tax, Tax on Advertising Billboards, Rental of Immovable Property and Tax on Immovable Property, Stamp Duty, Capital Gains Tax, Unused Land Tax and Transportation Tax.

The taxes outlined above already exist under current tax regulations with the main point being that they can now be accessed under the New Law on Taxation helping taxpayers to have easier access and understanding of their tax obligations.
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