Now all companies maintaining proper accounting records are exempt from Minimum tax. To implement the new MT exemption, the Ministry of Economy and Finance (“MOEF”) issued Prakas No. 638 MEF.Prk on the Criteria of Improper Accounting Records and Procedures for Paying Minimum Tax on 4 July 2017.
The GDT will establish a committee to evaluate the accounting records of taxpayers based on the above criteria. The evaluation is to be done every two years and taxpayers will be notified of the results of the evaluation accordingly. Taxpayers can make a request to the GDT to review the committee’s evaluation if the taxpayers disagree with the committee’s decision.
Enterprises with improper accounting records are defined as follows:
- Enterprises with accounting records which do not meet the requirements above
- Enterprises which fail to issue invoices for business transactions as stated in Articles 77, 79 and 98 of the LOT
- Enterprises which commit serious negligence as stated in Article 126 of the LOT
- Enterprises which commit tax evasion as stated in Article 127 of the LOT
- Enterprises which do not have an audit report from independent auditors if annual turnover is more than KHR2,000 millions Attached: July _ Prakas # 638_Holding proper accounting record and minimum tax