Double Taxation Agreement Cambodia Vietnam

The DTAS provides clarification on the taxation rights of the countries that have signed the DBA and determines the types of income covered by the agreement. In addition, the DBA provide for specific rules for the establishment of permanent establishments, the 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 concluded on 20 June 2019 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 Government of Hong Kong, James H. Lau Jr, 20 On 26 June 2019, it entered into force and entered into force after the conclusion of certain procedures necessary for the entry into force of the double taxation convention. The DFDL Cambodia Tax and Customs Practice has won the “International Tax Tax Firm of the Year” award in Cambodia for three consecutive years and has extensive experience in the application of double taxation treaties, including experience in submitting the necessary documents to enable tax countries to obtain the reduced rates of withholding tax described above. To simplify, the main purpose of a DBA is to eliminate double taxation of income paid in one territory to taxpayers and residents of another territory – for the DBA, which applies to Cambodian taxpayers, the exemption from double taxation is granted by a tax credit on the tax paid in the other jurisdiction. Cambodia has concluded double taxation treaties with Brunei, China, Indonesia, Malaysia, Singapore, South Korea, Thailand and Vietnam, each in line with the UNITED Nations Model Double Taxation Convention. Cambodian taxpayers who wish to benefit from the reduced withholding tax rates provided for in the double taxation convention between Cambodia and Hong Kong must apply for a certificate of tax residence and provide certain supporting documents required by the General Tax Service of the Ministry of Economy and Finance. Both countries apply the imputation method to eliminate double taxation and also provide provisions for a tax credit that should have been due, but which have been exempted or reduced in accordance with the country`s legislation in force to promote economic development.

On 1st The Double Taxation Convention between the Royal Government of the Kingdom of Cambodia (“Cambodia”) and the Government of the Hong Kong Special Administrative Region of the People`s Republic of China (“Hong Kong”) entered into force on 1 January 2020 for the avoidance of double taxation and the avoidance of tax evasion on income. In Cambodia, double taxation is eliminated by a deduction from the income tax of the Cambodian people equal 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 in order to improve the application of the tax against tax evasion, soil erosion and profit shifting by taxpayers. Cambodian taxpayers must apply for a certificate of tax residence and provide certain supporting documents required by the General Tax Service of the Ministry of Economy and Finance before applying the reduced rates of withholding tax provided for in the Double Taxation Convention between Cambodia and Hong Kong. . . .


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