Chinese dual tax burden relieved
An extensive tax treaty that would shield Chinese businesses operating in the Kingdom from double taxation, and vice versa, has been drafted and is expected to be approved imminently, according to a senior Cambodian tax official. Experts said on October 19 the double taxation agreement would create a clear legal framework built on increased fiscal transparency, allowing Chinese investment to continue to flood into the Kingdom without fear of an onerous tax obligation. Bun Neary, deputy director-general of the General Department of Taxation, said China has fully endorsed the DTA, which was among dozens of bilateral agreements inked during the state visit of Chinese President Xi Jinping last week. The document has been sent to Minister of Economy and Finance Aun Pornmoniroth for final approval, which could come within days. “There are a lot of Chinese investors in Cambodia and we need to have clear tax procedures to protect investors from being overly taxed,” she said. “The agreement will define what can and can’t be subject to double taxation.”
