On 10 October 2024, the Ministry of Economy and Finance issued an amendment to Prakas No. 071, which modifies the provisions concerning voluntary adjustments of tax returns. This amendment introduces critical changes, particularly regarding the deadline for penalty exemptions and conditions during tax audits. Below is a detailed comparison between the old and new provisions, along with key points taxpayers need to take note of:
PROVISION | PREVIOUS PRAKAS | AMENDED PRAKAS |
Extension of exemption deadline | End of June 2024 | End of June 2025 |
Eligible transactions for exemptions | Transactions before January 2024 | Transactions before August 2024 |
Exemption of administrative penalties for corrections made during tax audits | Only if correction is made before audit findings | No changes |
Administrative penalties if the corrections are made after audit findings | 10% additional tax, 1.5% late interest | No Changes |
Credit for payments after the audit findings | Payments will be credited against the audit result | No Changes |
This tax update is brought to you by Davies SM Attorneys-at-law. For more information and guidance, contact our partners and explore the Library of Laws section on Aquarii’s online platform to stay informed on business and investment laws in Cambodia.