Instruction No. 26118 GDT dated 28 October 2022 issued by the General Department of Taxation on “The Use of Exchange Rates for Self-Assessment Taxpayers”

On 28 October 2022, the General Department of Taxation (“GDT”) issued a new instruction, No. 26118, on the implementation of the official exchange rate rules to ensure that self-assessment taxpayers can accurately declare and pay taxes as well as issue invoices. This new instruction is effective from the date of signing (i.e. 28 October 2022) and abrogates Instruction No. 10362 GDT dated 17 May 2022 on the same subject.

Daily official exchange rate

For disclosure on invoices in Khmer Riel (“KHR”), taxpayers must use the daily exchange rate issued by the National Bank of Cambodia (“NBC”) or another market exchange rate, as long as it is not lower than the rate issued by the NBC. If the supply occurs on a holiday or before the time when the NBC issues its official exchange rate for the day, taxpayers must use the official exchange rate that the NBC issued the day before the holiday.

Non-resident taxpayers who register for simplified VAT are not required to disclose the KHR currency on their invoices. For tax declarations in KHR and the calculation of VAT to be paid, non-resident taxpayers must use the monthly official exchange rate (as discussed in item 3 below).

Official exchange rate for tax on salary

Taxpayers must use the official exchange rate issued by the NBC on the 15^th day of each month for the tax on salary calculation. If the 15^th falls on a holiday and the NBC does not issue its official exchange rate, taxpayers must use the NBC’s official exchange rate from the day before the holiday.

Monthly official exchange rate

Taxpayers must use the official exchange rate issued by the NBC on the last day of each month to calculate the monthly tax payments for supplies from non-resident taxpayers who have registered for simplified VAT or other transactions that do not have the KHR currency on the invoices, such as supplies from those who are not under the self-assessment regime or from a non-resident, non-registered suppliers.

Annual official exchange rate

Taxpayers must use the official exchange rate issued by the NBC on the last day of December of each year for the preparation of their annual tax return declaration and the calculation of their annual tax payment.