Taxpayers to be rated on compliance level

Taxpayers in Cambodia will be rated based on their compliance with the country’s tax code, and will be offered benefits if they rank highest, tax experts said yesterday. The new rating system was outlined in a regulation issued by the General Department of Taxation (GDT) late last month, which lists 12 different criteria, each worth one or two points, on which a taxpayer is assessed up to a maximum of 20 points. The criteria include whether a company has completed its tax registration and tax updates, whether it has lodged its tax returns and paid within the deadline, and whether it has maintained all required accounting records and legal documents. The tabulated score is used to place the taxpayer in one of three categories: bronze for one to 10 points, silver for 11 to 15 points, and gold for 16 points or higher. Clint O’Connell, head of Cambodia Tax Practice at foreign investment advisory and tax firm DFDL Cambodia, said the specific benefits of each compliance category were not indicated in the regulation, but he expects possible benefits to include being subject to only one tax audit for a tax year, exemption from the 1% minimum tax and its monthly pre-payments, and an accelerated VAT refund process. (Source: Phnom Penh Post)