Vision: Sustainable Development for Cambodia Taxation Workshop 27 September 2017 Diakonia Center Vision: Sustainable Development for Cambodia

Update on Recent Dialogue with General Department of Taxation (GDT) Challenges 27 September 2017 By: Khorn Bunthong, Head of Operations of CCC / Focal person of CSO Taxation Working Group Vision: Sustainable Development for Cambodia

Presentation Outlines Background Dialogue with GDT

Set up CSO Taxation Working Group Background Implication of legal environment (LANGO, cybercrime,…Taxation Laws) Set up CSO Taxation Working Group (29 April 2016: 1st Meeting) Taxation is a very sensitive issue which needs to deal with carefully and professionally.

1. Clear understanding/support CCC members on taxation issues Background (Cont.) Objectives: 1. Clear understanding/support CCC members on taxation issues 2. Develop a strategy to encourage and enable tax compliance, tax optimization and tax planning among CCC Members 3. Explore, through dialogue, with relevant Ministries and/or Departments

. Conducted 9 meetings already (a lot of discussions, action points,…) Background (Cont.) . Conducted 9 meetings already (a lot of discussions, action points,…) . Signed MoU with LAC (Support / advise: LANGO, labor law, other related laws…taxation law) with lawyer support. . Signed MoU with DFDL (Support / advise: taxation law).

Dialogue with GDT Done on 07 September 2017 with around 10 NGO leaders/representatives (CNGOs & INGOs) Objectives: Inform about contribution from CSOs to a development of Cambodia Inform about our concerns on taxation implication for CSOs. Suggest an effective & long-term mechanism to ensure tax compliance.

Dialogue with GDT Suggestion: Suggest setting up a taxation working group which has representatives from NGOs and government. Suggest not punishing or fining those NGOs who are still missing tax compliances; and promoting more compliance among NGOs. Suggest more explanation from GDT on taxation law to ensure more and clear understanding among NGOs.

Dialogue with GDT GDT: GDT is happy to accept the first request – setting up a taxation working group consisting of NGO and Government representatives (and possible exemption). However, he needs to report this to H.E. Kong Vibol first so that he can make consideration. Then he will inform CCC later. Suggests all NGOs to register at GDT. And if there are any requests for exemption or meet any problems, please write a letter to MoEF / GDT to consider. Suggests CCC to help circulate the information of tax registration to its members and other NGOs.

Dialogue with GDT GDT: GDT is happy to provide more trainings and explanations to NGOs on tax compliance. Suggests NGOs to send annual financial report (and audit report if possible) to MoEF. Once the taxation working group has not yet appeared, if there are any problems, please send a letter to MoEF / GDT to help solve the problems – don’t keep quiet.

H.E. Eng Ratana, General Director of GDT “Income that does not serve or share to any individual (just for running operations), it is not required to pay tax. But the NGOs need to send a letter to MoEF to approve first”. H.E. Eng Ratana, General Director of GDT

Way forwards: Looking forward to getting clear confirmation from GDT on setting up Taxation Working Group. Invite GDT to provide more training/refresher on taxation compliance for CSOs. Continue our work with DFDL, LAC, CSO taxation working group to support CCC members on taxation issues. Continue dialogue with MoEF / GDT on taxation issues. …

Q&A and Discussion