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Cambodia changes tax rules for commercial gambling businesses

Posted: Jan 10, 2023 10:53 Category: Asia , Casino , Regulatory , Posted by Content Team

Cambodia has changed tax regulations for commercial gambling businesses, moving towards a self-declaration regime.

It has thus changed the lump sum-based system that had been in place since the 1990s.

The new rules, the government says, also help implement anti-money laundering and anti-corruption rules, and combat tax evasion.

The changes were announced by the Cambodia Ministry of Economy and Finance (MEF). The new rules were implemented on December 30th 2022.

Gambling establishments must also follow the International Financial Reporting Standards. The IFRS governs how some types of transactions and events have to be reported.

Secretary of State of MEF Mey Vann told Khmer Times that the move will strengthen transparency and accountability in tax collection from the country’s gambling industry.

Checks and balances

The new tax rules will also help authorities implement anti-money laundering and anti-corruption measures in Cambodia.

Vann said that new checks and balances means that there will no longer be cases where operators and tax officials evade declaring tax. These checks and balances means that all parties are require to check one another.

The new rules will allow people to enjoy commercial gambling in casinos that are considered entertainment centres.

After a five-year transition period starting in 2023, however, casinos must change the word on the signboard to commercial gambling. This is being done to give the Cambodian industry time to adjust.

Khmer Times also spoke to Khun Darith, Managing Partner of audit, accounting and tax solutions at accountancy and auditing firm K Professional Accountants.

He explained that commercial gambling entities will have profit tax obligations of 20% and other withholding tax obligations.

For more industry news go to: https://sigma.world/news/

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