On 16 May 2023, the new Law on Taxation ("Law on Taxation") was promulgated on an urgent basis and came into force on 17 May 2023. The Law on Taxation consists of 20 chapters and 255 articles and abrogates the old law on taxation dated 24 February 1997 and its amendment dated 31 March 2003.
The amendments made to the Law on Taxation relate to, among others, (i) the updated definition of "permanent establishment" (PE); (ii) the revised definition of "related parties"; (iii) the updated of Cambodian sourced income; (iv) the timing of payment of public lighting tax and how the tax rate is determined; and (v) the enhanced penalties on obstruction of tax implementation.
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