Cambodia: Market interest rate for related party loans; incentives for voluntary amendment of tax declarations
A notification sets market interest rates for employee loans and loans between related parties for the year 2023
Market interest rates
The General Department of Taxation (GDT) on 24 January 2024 issued Notification No. 3830 GDT to set the market interest rates for employee loans and loans between related parties for the year 2023.
Incentives for voluntary amendment of tax declarations
In addition, the Ministry of Economy and Finance (MEF) on 30 January 2024 issued Prakas No. 071 MEF.Prk. GDT to provide taxpayers or withholding agents under the self-assessment regime with an exemption from administrative penalties, including additional tax, interest, and fines, for the voluntary amendment of their tax declarations due to unintentional errors until 30 June 2024.
This penalty exemption applies to the amendment of accounting records or tax declarations pertaining to transactions prior to January 2024 only.
This new guidance amends Prakas No. 217 (dated 14 March 2022) and introduces more favorable incentives for the voluntary amendment of tax declarations. Previously, taxpayers submitting voluntary amendments were eligible for reduced interest, subject to certain conditions, but additional tax could still be imposed. Furthermore, the additional tax and penalties were generally not allowed as offset against the tax audit reassessment.
Read a February 2024 report [PDF 153 KB] prepared by the KPMG member firm in Cambodia