Deductible expenses from farmers’ supply
Subject: Tax
Applicable Industries: All corporate

On 18 December 2023, the General Department of Taxation (“GDT”) issued Instruction No. 44611 On Evidence of Expense for Enterprises Procuring Supply from Farmers not under the Self-assessment Regime.


Under Taxation Law, supply without proper invoices or without proper supporting documents are not eligible to be deducted as expenses. However, it’s difficult to get proper invoices or without proper supporting documents from farmers.

Deductible expenses

To promote the local agricultural sector, GDT provide additional instruction on the evidence of deductible expenses for enterprises that obtained supply from farmers as follows:

  1. In case of every transaction produced by farmers without proper invoices, the enterprise shall obtain the ID card number, name, and telephone number of the supplier; except for supply transactions with value less than 200,000 Riels, where the ID card number of the supplier is not required.
  2. Enterprises that get the supply from the farmer, as stated in Point 1 above, shall input data in the purchase list such as the date, expense voucher number, expense amount, including ID card number, name, and phone number of the farmer in the online business tax filing system (e-Filing). For expenses under 200,000 Riels that occur occasionally, the enterprises shall include the expense-card number and supplier’s phone number.
  3. With the aim of verifying tax compliance, the enterprise shall have internal management documents that can be reviewed such as contracts, purchase orders, delivery documents and payment documents, inventory card, cash voucher, bank expense card, ID card (farmer), as well as keeping in the accounting record by specifying accurate amount of money and the date of expenses incurred.