TURNOVER TAX
NATURE OF TAX
A monthly tax on business turnover payable both by those subject to profits tax on the basis of their accounts, and those subject to the presumptive profits tax regime. In the case of those subject to the presumptive regime, however, turnover tax payable each month may be fixed in advance for periods of 3, 6 or 12 months.
EXEMPTIONS AND DEDUCTIONS
Statutory exemptions consist of:
(b) First sale of imported products that have been subject to consumption tax; and
(c) Mobile traders and small permanent establishments, as determined by the Minister of Economy and Finance.
RATES
There are three rates, as follows:
| Industrial, handicraft and mining businesses: | 1% | |
| Hotels (on turnover other than room charges, which are subject to the separate hotel room charge tax), restaurants, bars, massage parlors and other entertainment establishments: | 10% | |
| Traders, service providers, and other businesses (including hotel room charges): | 2% | |
These rates are applied to the market price of
goods sold, inclusive of any excise tax, if any.
In the case of hotel room charges, however,
turnover tax is applied to the price exclusive
of the special hotel room charge tax.
EXCISE TAX
NATURE OF TAX
Manufacturing tax levied on locally-produced goods: cigarettes, tobacco, alcoholic drinks, soft drinks, ice cream and lotus seeds. The tax is not levied on similar goods imported into the country. Tobacco is subject to tax when it is sold by tobacco traders, but this tax may, in principle, be credited against the excise tax liability of cigarette manufacturing establishments. The tax is calculated on the basis of prices established by the Ministry of Finance. In principle these are now fixed on the basis of market prices (with the rate applied to the price excluding the excise duty percentage).
EXEMPTIONS AND DEDUCTIONS
In principle, none. However,, the tax is at present not being paid by one out of two cigarette manufacturers operating in Cambodia, by the one enterprise producing beer, by the one enterprise producing soft drinks, and by the one enterprise producing ice cream.
RATES
Statutory rates are as follows:
| Cigarettes, tobacco and alcoholic beverages: | 50 % |
| Soft drinks and ice creain: | 30 % |
| Lotus seeds: | 20 % |
HOTEL ROOM CHARGE TAX
NATURE OF TAX
A tax on hotel room charges, levied in addition to the 2 percent turnover tax. (A proposal to repeal this separate tax, and replace it with a 10 percent rate of turnover tax on hotel room charges, has been approved by the Council of Ministers but not yet presented to the National Assembly).
EXEMPTIONS AND DEDUCTIONS
None.
RATES
10 percent.
BUSINESS LICENSE FEE (PATENTE)
NATURE OF TAX
An annual registration (or license) fee levied on all businesses, industries and professionals. The base of the tax is the previous year's turnover, or estimated turnover. New businesses are taxed on the basis of a provisional estimate. In 1994, an estimated 47,000 businesses are expected to pay the patente (of which 16,000 are in Phnom Penh).
EXEMPTIONS AND DEDUCTIONS
Farmers are not subject to the tax.
RATES On annual turnover between 400,000 riels (US$ 154) and 5 million riels (US$ 1,925), the patente is levied as a percentage of total turnover at the following rates:
| Class 1 : | Manufacturing and handicrafts: | 0.5 percent | |
| Class 2 : | Fisheries, construction, transport, small services, restaurants, and trade: | 0.8 % | |
| Class 3 : | Other services (such as beauty salons, laundries, photographic studios, car rental agencies, and hotels): | 1.0% |
For small businesses with annual turnover below 400,000 riels--which account for around 50 percent of businesses subject to the tax-specific amounts of patente due are set as follows: