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General Department of Taxation issued Instruction No. 26118 GDT on the Use of Official Exchange Rate for Self-Assessment Taxpayers on 28 October 2022 (Instruction No. 26118) which abrogated Instruction 10362 GDT, dated May 17, 2022.
Self assessment taxpayers shall declare and issue invoices based on exchange rate as followed:
1. Daily official exchange rate
Taxpayers shall use the daily official exchange rate issued by the National Bank of Cambodia (“NBC”) or the market exchange rate, provided it is not lower than the rate issued by the NBC, when using Khmer Riel currency in their invoices.
In the event that an invoice is issued on a public holiday/weekend, or before the NBC issues their daily official exchange rate, taxpayers shall use the daily official exchange rate issued by the NBC from the previous day.
Non-resident e-commerce suppliers, who have registered for VAT with the GDT, are not required to use Khmer Riel currency, as the total amount, in the invoices that they issue. However, for the purpose of filing their monthly VAT tax declarations, registered non-resident e-commerce suppliers shall use the monthly exchange rate as stated in Point 3 below.
2. Exchange rate for Tax on Salary
Taxpayers shall use the official exchange rate issued by the NBC on the 15th of each month for the calculation of Tax on Salary. If the 15th of the month falls on a holiday/weekend where the NBC does not issue their official exchange rate, taxpayers shall use the official exchange rate issued by the NBC from the previous day.
3. Monthly official exchange rate
Taxpayers shall use the official exchange rate issued by the NBC on the last day of each month to calculate their monthly taxes. This includes registered non-resident e-commerce suppliers, persons who are not under the self-assessment regime, and non-residents who do not reflect the Khmer Riel currency in their invoices.
4. Annual official exchange rate
Taxpayers shall use the official exchange rate issued by the NBC on the last day of December of each year, assuming they have a December tax year-end, for the preparation of their annual Tax on Income declaration and the calculation of their annual tax liability.
Should you need any further information or tax support, please contact us at: tax@advancegroupkh.com.
Advance Grand Formula Co., Ltd is licensed audit firm from Accounting and Auditing Regulator (ACAR Decision N0. 014), member audit firm of Kampuchea Institute of Certified Public Accountants and Auditors (license number C-00085) and tax agent from General Department of Taxation (license number TA202204002).
This Publication is intended for general guidance only and should not form the basic of specific decisions.
Should you need any further information or support, please contact us at: accounting@advancegroupkh.com (accounting), audit@advancegroupkh.com (audit), tax@advancegroupkh.com (tax) and number and telegram 085 36 8888 and 070 399 888.
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