Accounting and Auditor Regulator (“ACAR”) issued Sub-Decree No. 79 ANKr.BK dated 1 June 2020. Sub-Decree 79 describes the penalties for entities that violate the Law on Accounting and Auditing.

Entities under scope of Sub-Decree 79 are:

• Enterprises or legal entities registered with the Ministry of Commerce and/or General Department of Taxation as a Large or Medium Taxpayer;
• All non for profit entities registered with specialized ministries and institutions; and
• All accountants and auditors who are members of the Kampuchea Institute of Certified Public Accountants and Auditors (“KICPAA“) who have received an accounting and/or auditing professional license from the National Accounting Council (“NAC“).

Interim penalties for Large Taxpayer are:

• Use of a different accounting period from the standard period specified in the accounting and auditing law without approval 2 million Riels (Approx. US$ 500)
• Failure to use Khmer Language in accounting records and financial reports 2 million Riels (Approx. US$ 500)
• Use of another currency beside Khmer Riel in accounting records and financial reports without approval 2 million Riels (Approx. US$ 500)
• Failure to submit or late submission of annual financial reports to the General Secretary of the NAC within the deadline 2 million Riels (Approx. US$ 500)
• Failure to keep accounting documents as defined by law/ Not holding accounting records/Failure to prepare financial reports in accordance with the accounting standards/failure to submit financial statements to an independent audit/failure to maintain financial reports in accordance with the accounting standards 10 million Riels (Approx. US$ 2,500)

Interim penalties for Medium Taxpayer are:

• Use of a different accounting period from the standard period specified in the accounting and auditing law without approval 1.5 million Riels (Approx. US$ 375)
• Failure to use Khmer Language in accounting records and financial reports 1.5 million Riels (Approx. US$ 375)
• Use of another currency beside Khmer Riel in accounting records and financial reports without approval 1.5 million Riels (Approx. US$ 375)
• Failure to submit or late submission of annual financial reports to the General Secretary of the NAC within the deadline 1.5 million Riels (Approx. US$ 375)

Failure to keep accounting documents as defined by law/ Not holding accounting records/Failure to prepare financial reports in accordance with the accounting standards/failure to submit financial statements to an independent audit/failure to maintain financial reports in accordance with the accounting standards 8 million Riels (Approx. US$ 2,000).

Advance Grand Formula Co., Ltd is licensed audit firm from Accounting and Auditing Regulator (“ACAR”) and member audit firm of Kampuchea Institute of Certified Public Accountants and Auditors (KICPAA). 

Should you need any further information or support, please contact us at: accounting@advancegroupkh.com.