Cambodia: Guidance on VAT adjustments; reminder of annual income tax reporting for 2021

Guidance to clarify rules and procedures on VAT adjustments

Guidance to clarify rules and procedures on VAT adjustments

The tax authority issued guidance—Notification No. 1280 GDT (24 January 2022)—to clarify the rules and procedures in instances when the amount of value added tax (VAT) regarding a supply is adjusted after the time of supply or the issuance of the invoice.

Under the guidance, VAT invoices or VAT monthly tax declarations can be adjusted if the supply was cancelled, the nature of the supply has varied or changed fundamentally, the previously agreed benefit of the supply has varied or changed due to a new agreement because of discount of the price or other reasons, or the goods (or a part of the goods) or packaging was returned to the supplier or the service was not fulfilled.

The guidance addresses how the VAT amount can be adjusted if there is an increase (or a decrease) in the value of the supply.

Income tax returns

The tax authority issued guidance—Notification No. 1265 GDT (24 January 2022)—to remind taxpayers of their obligation to file the tax return and pay annual income tax for tax year 2021 by the set deadline.

  • The 2021 annual income tax return is to be filed electronically.
  • The e-filing of the income tax return and the payment of tax must be completed by 31 March 2022 for calendar year taxpayers (or within three months after the end of tax year for taxpayers not following the calendar year).
  • The balance sheet, income statement, and related-party transaction listing are to be attached to the return.
  • Enterprises with multiple branches must declare their annual income tax based on the consolidated result of the primary establishment and all branches. The list of income and expense accounts and fixed asset schedule of each branch is to be attached to the return.
  • Enterprises with multiple qualified investment project (QIPs), or other projects that are QIP and non-QIP, receiving an income tax exemption or subject to income tax at different rates, are to file the return and pay annual income tax and comply with the tax obligations of enterprises with multiple projects.

Read a February 2022 report [PDF 369 KB] prepared by the KPMG member firm in Cambodia

 

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