On 12 January 2021, the Ministry of Economy and Finance issued Prakas N0. 009 on the Reclassification of Taxpayers under the Self-Assessment Taxpayer Regime (“Prakas 009”).

Prakas 009 replaces Prakas 025 on the classification of taxpayers, which was issued in January 2018. The main aim of Prakas 009 is to determine the criteria for small, medium, and large taxpayers under the new self-declaration regime, with the agriculture, industrial, service, and commerce sectors (core sectors to the Cambodian economy) being the primary targets for this regulation.

Taxpayers are assessed on their annual turnover or the value of their assets.

If the General Department of Taxation (“GDT”) finds out that the taxpayers do not declare actual turnover, the GDT, at its own discretion, may reclassify taxpayers based on total assets, which include current and non-current assets, as follows:

1. Small taxpayers:

• For taxpayers in agriculture, services and commercial sectors: total assets from KHR 200,000,000 (approximately US$ 50,000) to KHR 1,000,000,000 (approximately US$ 250,000)
• For taxpayers in industrial sector: total assets from KHR 200,000,000 (approximately US$ 50,000) to KHR 2,000,000,000 (approximately US$ 500,000)

2. Medium taxpayers:

• For taxpayers in agriculture, services and commercial sectors: total assets from KHR 1,000,000,000 (approximately US$ 250,000) to KHR 2,000,000,000 (approximately US$ 500,000)
• For taxpayers in industrial sector: total assets from KHR 2,000,000,000 (approximately US$ 500,000) to KHR 4,000,000,000 (approximately US$ 1,000,000)

3. Large taxpayers:

• For taxpayers in agriculture, services and commercial sectors: total assets above KHR 2,000,000,000 (approximately US$ 500,000)
• For taxpayers in industrial sector: total assets above KHR 4,000,000,000 (approximately US$ 1,000,000)

Advance Grand Formula Co., Ltd is a Cambodian tax agent under license number – TA202204002.

Should you need any further information or support, please contact us at: tax@advancegroupkh.com.