Business Taxes

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HYperfly
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Business Taxes

Post by HYperfly » Tue Jan 14, 2020 8:15 am

Can anyone help to advise the taxes applicable based on the below scenario?

1. Singapore company issuing an invoice to a Cambodia company
2. Cambodia company issuing an invoice to a Singapore company

My understanding is that there will be a 10% WHT for 1 and a 10% VAT for 2. Am I correct?
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Kammekor
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Re: Business Taxes

Post by Kammekor » Tue Jan 14, 2020 9:08 am

HYperfly wrote:
Tue Jan 14, 2020 8:15 am
Can anyone help to advise the taxes applicable based on the below scenario?

1. Singapore company issuing an invoice to a Cambodia company
2. Cambodia company issuing an invoice to a Singapore company

My understanding is that there will be a 10% WHT for 1 and a 10% VAT for 2. Am I correct?
You need to be much more specific. There are all kinds of product(group) related taxes for both import and export, so if your question is about goods you might well be wrong.
HYperfly
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Re: Business Taxes

Post by HYperfly » Tue Jan 14, 2020 3:51 pm

To be more specific, we have a job with a Cambodia contractor to supply and install construction materials for their residential project. We have found a Cambodia supplier who can help to provide installation services for the materials.

Our company in Singapore will supply the materials to our installation supplier, and then they will provide the service to install the materials.

Therefore, we will bill the contractor and our supplier will be billing us for the services they provide.
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clutchcargo
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Re: Business Taxes

Post by clutchcargo » Tue Jan 14, 2020 4:50 pm

This site can assist to determine the applicable customs taxes and duties if you search for your construction materials: http://www.customs.gov.kh/publication-a ... odia-2017/

I have no direct experience but I understand that the shipping agent in Singapore or Cambodia would assist with this.
velvet_thunder
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Re: Business Taxes

Post by velvet_thunder » Tue Jan 14, 2020 5:56 pm

Hi guys,

1)If the goods are imported from abroad, then the VAT will be paid during the importation process by the Cambodian company
the Cambodian company purchasing the goods will have to pay the import tax (depends on the nature of the goods, you can check HS code of this kind of goods to find the right % ) then the VAT will be calculated by customs on the base of Value of goods purchased (generally the value on the invoice but sometimes different) + Import Tax.

So if the custom process is done properly, the Singaporean company should not include the VAT in their invoice since the Cambodian company is going to pay directly the amount calculated by customs.

2) A Cambodian company is going to pay 14% WHT on services provided by a foreign company if i am correct, but in your case this is the other way around and i don't see that case here, in the page giving detail on the WHT rates: https://www.tax.gov.kh/en/bwt.php. So my guess is that the Cambodian Company should include the VAT in their invoice to the Singaporean company. It would be better to check that though.
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