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Cambodia’s Tax Department Calls for Commercial Gambling Businesses to Make Sure They Pay Due Taxes

The tax authorities in Cambodia have reminded the owners and directors of commercial gambling businesses to make sure they meet their tax obligations. In a statement, released earlier this week, the General Department of Taxation (GDT) of the country’s Ministry of Economy and Finance (MEF) – has warned that failing to pay taxes may result in legal action against such operators on the Government’s part.

A week ago, Aun Pornmoniroth, the finance minister of Cambodia, gave the green light to provide new tax incentives and clarified that no monetary penalties and other measures, such as the interest for late payments or additional tax charges, will be imposed on the owners of commercial gambling businesses who voluntarily file their tax returns and pay taxes for their non-commercial gambling transactions. Under the given definition, the revenue derived from restaurants, hotels, karaoke, souvenir shops, space rental, marts, massages, etc. may be part of the revenue of so-called non-commercial gambling transactions

The statement was officially signed by the GDT Director General Kong Vibol on February 1st, only a day after the incentives received the approval of the finance minister.

The aforementioned enticements were unveiled for cases of mistakes in paying taxes and filing tax returns only, and the approval is set to be valid as of the date the notification’s statement was signed and issued to the end of March 2023.

Gambling Businesses Owners Expected to Voluntarily File for Non-Commercial Gambling Transactions, Too

According to media reports, the managing partner of auditing firm K Professional Accountants – Khun Darith – has explained that the Cambodian General Department of Taxation now requires that owners and directors of commercial gambling businesses have to file for non-commercial gambling transactions on a voluntary basis with incentives. According to him, the move is good not only for the country’s Government but also for the gambling operators that could otherwise potentially face penalties or fines.

Mr. Darith has explained that the aforementioned strategy is a good one because it provides the Government with the opportunity to collect larger tax revenue and at the same time companies would not be fined or penalized. Such businesses would instead pay taxes for non-gambling transactions that they had previously carried out and after they start doing so, they would continue paying such taxes, which, in its turn would mean larger tax revenue for the Cambodian Government in the future.

Under the standard tax laws and regulations in the country, all gambling companies are required to declare and pay taxes for business activities other than gambling. Unfortunately, not all commercial gambling enterprises had fulfilled their obligation to do so.

Representatives of the General Department of Taxation remain hopeful that the owners and directors of gambling companies that had failed to declare their revenue and pay taxes will accept their responsibilities and file the due declarations as soon as possible. Recently, Cambodian Prime Minister Hun Sen complemented the General Department of Taxation for being very efficient in collecting the internal tax revenue that had been targetted by last year’s Law on financial management.

 Author: Harrison Young

Harrison Young is an experienced writer, who started his career almost 8 years ago. Prior to joining our team at CasinoGamesPro, he worked as an editor for a small magazine.