September 4, 2024

 

On December 23, 2016, the Ministry of Economy and Finance issued Prakas 1536 MEF to establish levels of taxpayer compliance, encouraging adherence to tax obligations. Prakas 1536 defines three compliance levels – (1) Gold, (2) Silver and (3) Bronze.

The criteria for these levels include timely registration, filing, and payment of taxes (including reassessed taxes), maintaining proper accounting records, and having a clean record regarding negligence charges.

 

Why does it matter for us?

 

General tax incentives include:

  • Gold compliance is the highest status under Prakas 1536.
  • Taxpayers with Gold compliance receive a certificate valid for two years.
  • Gold compliance taxpayers can request a VAT refund below KHR 500 million (approx. USD 125,000) without a VAT audit. 
  • They are subject to one Comprehensive Tax Audit every two years and are exempt from Limited or Desk Audits during this period.
  • With formal recognition from GDT for maintaining accounting records, taxpayers are exempt from the 1% minimum tax on turnover and gain additional points for Gold compliance.

 

For PCLA, the key incentive of holding a Gold compliance certificate is the limitation to one Comprehensive Tax Audit during the two-year validity period.

We are thrilled to announce that PCLA has received the “Gold Certificate of Tax Compliance” from GDT for the fourth time, applicable for 2025 & 2026, in addition to existing certificates covering 2019 to 2024, and a formal recognition for maintaining proper accounting records for 2024 & 2025.

This remarkable achievement reflects our unwavering commitment to excellence, integrity, and compliance. It underscores our reputation as a trusted and responsible organization, aligning with Pillar 3 of our Sustainability Strategy (Sustainable Business) and Pillar 5 of our Finance Strategy (Reporting & Stewardship) initiated by Future Finance Program (FFP).

 

This recognition highlights our proactive approach to regulatory compliance, ensuring transparency, fostering stakeholder trust, and contributing to Cambodia’s growth.