The General Department of Taxation (GDT) and the Ministry of Posts and Telecommunications (MPT) have announced that they will begin collecting value-added tax (VAT) on digital services from foreign companies starting on April 1, 2022.
The move is aimed at ensuring that foreign companies that provide digital services to Cambodian consumers pay their fair share of taxes. Currently, these companies are not required to pay VAT in Cambodia, even though they generate significant revenue from Cambodian users.
The GDT has said that it will work with the MPT to identify and collect VAT from foreign companies that provide digital services to Cambodian consumers. The tax will be applied at a rate of 10%.
The MPT has also said that it will work to promote the production of digital content in Cambodia. The ministry has met with more than 50 digital content producers, such as digital media creators, vloggers, digital singers, digital artists, influencers, filmmakers, music producers, and digital animators. The ministry has encouraged these producers to create new content that will help to support the development of the digital economy and society in Cambodia.
The introduction of VAT on digital services from foreign companies is a positive development for Cambodia. It will help to ensure that these companies pay their fair share of taxes, and it will also help to promote the production of digital content in Cambodia.
What do you think?
I think this is a great move by the Cambodian government. It is important that foreign companies that provide digital services to Cambodian consumers pay their fair share of taxes. This will help to generate revenue for the government, and it will also help to level the playing field for local businesses.
I also think it is great that the MPT is working to promote the production of digital content in Cambodia. This is an important industry, and it has the potential to create jobs and generate revenue for the country. I hope that the MPT will continue to support the production of digital content in Cambodia.
