Cambodia & EU Collaborate to Foster Tax Compliance & Investment Climate

• Sommana Yan
• 9 April 2024
• Local News
• 1538 Views

The General Department of Taxation (GDT) and the European Union (EU) have initiated discussions to devise mechanisms aimed at enhancing tax compliance and fostering a culture of taxation in Cambodia, particularly focusing on promoting fair competition and strengthening fiscal integrity.

This collaborative effort seeks to address the challenges faced by investors from EU countries, as highlighted in a press release following a productive working meeting between HE Kong Vibol and HE Ambassadors of France, Germany, and the EU to Cambodia, issued on 7 April 2024.

During the meeting, both parties underscored their commitment to bolstering international cooperation and improving the investment climate in Cambodia. Emphasis was placed on enhancing the Ease of Doing Business framework and attracting increased investment from EU nations into Cambodia’s burgeoning economy.

Furthermore, discussions encompassed the tax sector, with a specific focus on fostering a culture of tax compliance and equitable competition. Both Cambodia and the EU explored existing mechanisms and potential solutions to address the concerns raised by investors from France, Germany, and other EU member states.

Despite more than 30 years of diplomatic relations, investment cooperation between Cambodia and the European Union remains relatively modest. Since 1994, EU investment projects in Cambodia have amounted to only 62, totalling approximately US$540 million. As both parties continue to collaborate on promoting tax compliance and enhancing the investment climate, there is optimism for further growth and partnership between Cambodia and the EU. (Read more)

• Cooperation and networking