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Circular No. 1707 was issued by the General Department of Taxation ("GDT") of the Ministry of Economy and Finance on 2 October 2013 in order to provide consistency in the determination of the withholding tax on loan interest for loans with zero interest rate or lower than market interest rates.
When determining withholding tax, all taxation units ("Units") shall not apply deemed interest when determining the withholding tax on loans upon which no interest expense has been recorded, or loans which have lower than market interest rate. Similarly, Units shall not treat such loans as deemed subsidies when determining profit-tax.
Units must also compare the recorded interest expense against the prevailing interest rate so as to apprehend situations where the recorded interest expense is higher than the market rate. The Units must then adjust the interest expense downwards outside the accounting report, and the difference will be deducted from the interest expense line.
Prakas No. 959 was issued by the Ministry of Economy and Finance on 18 October 2013 to establish a joint working group of eight members for monitoring the draft of the Standard Evaluation of Real Estate in Cambodia. It also sets out the following tasks for the working group:
- To monitor the draft regulation on Standard Evaluation of Real Estate in Cambodia and the Code of Ethics of the Evaluators;
- To monitor the application of the Standard Evaluation of Real Estate and the application of the Code of Ethics of the Evaluators;
- To participate in the drafting of the legal regulations regarding the development of the financial sectors from 2011 to 2020; and
- To report to and advise the Minister of Economy and Finance.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only
intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.
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R&T Sok & Heng Law Office Vattanac Capital Office Tower Level 17, No. 66, Preah Monivong Boulevard, Sangkat Wat Phnom, Khan Daun Penh 120211 Phnom Penh, Cambodia http://kh.rajahtannasia.com
Contacts: Heng ChhayManaging PartnerD +855 23 215 734 F +855 23 726 417 heng.chhay@rajahtann.comSok KhavanPartnerD +855 23 215 734 F +855 23 726 417 sok.khavan@rajahtann.comDesmond WeeDirectorD +65 62320474desmond.wee@rajahtann.comRajah & Tann Asia is a network of legal practices based in Asia. | Member firms are independently constituted and regulated in accordance with relevant local legal requirements. Services provided by a member firm are governed by the terms of engagement between the member firm and the client. | This update is solely intended to provide general information and does not provide any advice or create any relationship, whether legally binding or otherwise. Rajah & Tann Asia and its member firms do not accept, and fully disclaim, responsibility for any loss or damage which may result from accessing or relying on this update. |
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