On 14 March 2022, General Department on Taxation (GDT) issue Prakas on Incentives for Voluntary Revision of Tax Returns (Prakas 217) which aims to incentives voluntary revision of tax returns.

Taxpayers who request voluntary revision of tax returns because of limited understanding of tax obligations, negligence, mistake and forgetfulness shall be entitled to following benefits:

1. Revision before tax audit take places

Taxpayers shall be subjected to additional tax for underpayment tax of 10% and receive benefits of decrease of late payments as followed:

1. 1. A 50% decrease of monthly interest on late tax payment if the revision is made during a period not more than six months after original filing date of the tax declaration.
   2. A 20% decrease of monthly interest on late tax payment if the revision is made after six months of original filing date of the tax declaration.

2. Revision during tax audit

Taxpayers who revise tax returns during tax audit starting from the receipt of notification letter on tax audit, shall be subjected 10 percent of the amount of the underpaid tax plus 1.5% percent monthly interest on the late tax payment in accordance with article 131 of Law of Taxation (LOT). In addition, taxpayers shall be subjected to additional tax and interest on late tax payment based on procedures and result of audit in accordance with article 130, 131, 132 and 133 of LOT. In this case, additional tax and monthly interest on late tax payment shall not be offset additional tax and monthly interest on late tax payment as a result of tax audit except that taxpayers are subjected to tax audit the for first time.

Procedures of revision of tax returns shall be determined by instruction of GDT.

Advance Grand Formula Co., Ltd is a Cambodian tax agent under license number – TA202204002.

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