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30 Days Left for Penalty-free Self-correction of Tax Returns
May 29, 2024The deadline for voluntary self-correction of tax returns is fast approaching, with only 30 days left for taxpayers to rectify their past tax returns without incurring penalties.
Refer to our previous article: “The Power of Forgiveness: How Cambodia is Offering Unprecedented Tax Savings for the Confession of Past Unpaid Taxes“, Cambodia’s General Department of Taxation has introduced Prakas 071 MEF.BrK.GDT. in January 2024, allows self-assessment taxpayers to correct prior tax declarations stemming from misunderstandings or confusion. The deadline to take advantage of this incentive is 30 June, 2024, so act fast!
This incentive applies to:
- Self-assessment taxpayers who need to amend prior tax declarations due to misunderstandings or confusion, whether by the taxpayers themselves or withholding agents.
Benefits of Proactive Self-Correction:
By submitting corrected accounting records and tax declarations by the 30 June deadline, you can benefit from exemption from administrative sanctions. This includes:
- Penalties range from 10% to 40% of the underpaid tax, plus a 1.5% monthly interest charge, and
- Fines between 5 million and 10 million riels, along with potential business license suspension or revocation.
Scope of Application:
To qualify for the exemption, requests to amend accounting records and tax declarations must relate to transactions prior to January 2024. Transactions after 01 January, 2024 do not qualify for this relief.
Additionally, if a tax audit is already underway, the exemption applies only if the disclosure is made before the tax auditor identifies the issue. Disclosures made after discovery will incur a 10% penalty on the underpaid tax and a 1.5% monthly interest charge. However, any previously paid penalties and interest can offset future reassessment penalties and interest on the same issue post-audit.
Act Now
With the deadline looming, it’s essential to act swiftly. For questions or assistance in navigating this opportunity, you can reach out to our dedicated team of advisors at VDB Loi. We are here to help you make the most of this regulation.
Don’t miss this chance to correct past tax errors penalty-free. The window closes on 30 June, 2024.
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