Double Taxation Agreement Cambodia Vietnam

Cambodia has double taxation agreements with Brunei, China, Indonesia, Malaysia, Singapore, South Korea, Thailand and Vietnam, including any double taxation agreement in accordance with the UN Double Taxation Convention. Taxpayers in Cambodia must apply for a tax residence certificate and provide certain supporting documents required by the General Tax Department of the Ministry of Economy and Finance before using the reduced withholding rates available under the Cambodia-Hong Kong Double Taxation Convention. In practical terms, the provisions of the Cambodia-Hong Kong Double Taxation Convention contain a 10% withholding tax for each of the four categories: dividends; Copyright; Technical services and interest – by finding that interest collected in one of the two countries and paid to certain public bodies in the other country may be tax-exempt in the state where the interest was collected. In Cambodia, double taxation is abolished by deduction of the income tax of the Cambodian-domiciled island up to the tax paid in Hong Kong. In addition, the Double Taxation Convention provides for a mechanism for the exchange of information between the tax authorities of Cambodia and Hong Kong to improve the enforcement of tax against tax evasion, the erosion of the base and the transfer of profits by taxpayers. DBAs clarify the tax duties of countries that are signed under the DBA and define the types of income covered by the contract. In addition, the DBAs contain specific rules concerning the creation of stable institutions, taxation of individuals, international transport, disputes and the exchange of information. DBAs also play an important role in the growing concern of governments trying to protect their respective tax bases from erosion through mechanisms such as profit shifting. The double taxation agreement was signed on June 20, 2019 and June 26, 2019, respectively, by the Deputy Prime Minister of the Cambodian Ministry of Economy and Finance, Mr. Aun Pornmoniroth, and the Secretary of Financial Services and the Ministry of Finance of the Hong Kong Government, Mr. James H.

Lau Jr. came into force after the completion of certain procedures necessary for the entry into force of the double taxation agreement. Both countries use the credit method to eliminate double taxation. There are also provisions for the application of a lean tax credit for taxes that should have been due, but which have been exempted or reduced in accordance with the laws of the country concerned in order to promote economic development. Tax payers in Cambodia who wish to benefit from the reduced withholding tax rates available under the Cambodia-Hong Kong Double Taxation Agreement must apply for a certificate of tax residence and provide certain supporting documents required by the Ministry of Taxation of the Ministry of Economy and Finance. The DFDL Cambodia Tax and Customs Practice has won the International Tax Review Tax Firm of the Year award in Cambodia for three consecutive years and has extensive experience in the application of double taxation agreements, including the experience of submitting the necessary documents to enable taxpayers to obtain reduced withholding rates as described above.

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