On September 17, 2024, the General Department of Taxation issued an important Instruction outlining the procedures and obligations for taxpayers seeking to apply for the permanent dissolution of a business, in accordance with Article 203 of the Law on Taxation. The process can be summarized as follows:
1. Notification Requirement
Taxpayers must notify the tax administration within 15 days after the permanent dissolution of the business, following procedures outlined in Article 203 of the Law on Taxation.
2. Application Process
- Taxpayers can apply for dissolution through an online platform, the GDT e-Administration app, or by submitting Form 103 in person at the tax office.
- The application must include required documents such as a notification letter for dissolution and proof of stamp duty payment (1,000,000 riels).
3. Final Tax Filing
- Before applying, the taxpayer must close their accounting books and submit all monthly and annual tax returns up to the date of dissolution.
- Once the application is accepted, taxpayers are no longer required to submit monthly or annual tax returns. All tax services, including invoicing, tax certificates, and tax incentives, will be suspended, except for settling outstanding tax debts.
4. Tax Audit and Inspection
The tax administration may conduct a tax audit as part of the dissolution process. Taxpayers must prepare necessary documents and fully cooperate with the audit process to expedite dissolution.
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.