Cambodia: Basis for application of specific tax on certain merchandise
Cambodia: Basis for application of specific tax
The Ministry of Economy and Finance issued guidance—Prakas no. 012 MEF.Prk (14 January 2020)—to clarify the tax basis for application of the “specific tax on certain merchandise” on certain domestically produced goods.
The guidance provides that the tax basis for calculating the specific tax on certain merchandise for goods produced in Cambodia—including beer, wine, cigarettes and cigars, and non-alcoholic beverages as well as certain other goods—will be 90% of the selling price as recorded in the invoice (excluding amounts of value added tax (VAT), public lighting tax, and the specific tax itself).
The guidance also designates what is deemed to be the time of the supply for purposes of applying the specific tax on certain merchandise, as well as when the tax itself will be payable (in general, the same rules apply as for VAT purposes). The guidance has an effective date of 1 January 2020.
Read a 2020 report [DPF 107 KB] prepared by the KPMG member firm in Cambodia
The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.