Service

Special Tax

General Department of Taxation

Tuesday, March 31, 2020
Source/Copyright: General Department of Taxation (GDT) Cambodia

Special Tax

A. What is Special Tax?

Special Tax is collected on certain goods or services that are luxury items, not essential for daily living, or have an impact on health, society, or the environment. This tax applies to the importation, production, or distribution of goods, as well as the supply of taxable services for consumption within the Kingdom of Cambodia.

Taxable goods and services include:

1. Certain Goods, such as:

  • A. Petroleum Products:
    • Gasoline
    • Diesel
    • Aviation fuel
    • Lubricants
  • B. Beverages:
    • Non-alcoholic drinks, such as carbonated drinks, drinks containing sugar, sweetening substances, or various flavorings, and other non-alcoholic beverages (except for water, mineral water, milk, and fruit or vegetable juices).
    • Wine
    • Beer
    • Other alcoholic beverages
  • C. Cigarettes, cigars, and all types of tobacco products.
  • D. Electronic equipment.
  • E. Motorcycles.
  • F. Automobiles.
  • G. Vehicle spare parts.
  • H. Plastic products.
  • I. Cosmetics.
  • J. Glass products used as construction materials.
  • K. Cement.

2. Certain Services, such as:

  • A. Telecommunication services.
  • B. Air passenger transport services.
  • C. Entertainment services, such as:
    • Concerts, music playing, performances, or theatrical acts conducted as business activities in entertainment halls, karaoke venues, discotheques, public places, or any other venues.
    • For hotels or restaurants that feature live music, performances, or acts integrated with the hotel or restaurant activities.
    • Massage, Karting (car racing), motorcycle racing, golf, snooker, bowling, and all types of games.

B. Definitions of Key Terms

  • Special Taxable Person: Refers to any importer, producer of goods, or supplier of services subject to the Special Tax.
  • Importation: Refers to the activity of bringing goods into the customs territory of the Kingdom of Cambodia by any person.
  • Importer: Refers to any person who imports goods either by themselves or through another person. For the purposes of this paragraph, the recipient of the goods, the owner, the person who will become the owner, or the person who has the right to dispose of the goods before they clear customs control is also considered an importer.
  • Production: Refers to the activity of transforming raw materials, assembling, packaging, or bottling to create semi-finished or finished products.
  • Producer: Refers to any person who manufactures goods or hires another person to manufacture goods for them.

C. Special Tax Exemptions

Special Tax is exempted for importations made by individuals who are not obligated to register, for the following quantities:

  • Cigarettes: 200 sticks
  • Cigars: 50 sticks
  • Wine/Liquor: 2 liters

D. Tax Rates, Tax Base, and Tax Calculation

1. Special Tax Rates

The Special Tax is determined by specific rates based on the type of goods or services as follows:

  • 35% Rate: On all types of wine and liquor.
  • 30% Rate: On all types of beer.
  • 25% Rate: On all types of cigars.
  • 20% Rate: On all types of cigarettes.
  • 15% Rate: On energy drinks.
  • 10% Rate: On non-alcoholic beverages.
  • 5% Rate: On fruit juices.
  • 10% Rate: On plastic products.
  • 5% Rate: On all types of cement.
  • 10% Rate: On air passenger transport services.
  • 10% Rate: On entertainment services.
  • 3% Rate: On telecommunication services.

2. Special Tax Base

  • For locally produced goods: The tax base is equal to 90% of the supply value recorded on the invoice issued to the customer, excluding Value Added Tax (VAT), Public Lighting Tax (PLT), and the Special Tax itself.
  • For certain services: The tax base is the service fee recorded on the invoice, excluding Value Added Tax (VAT) and the Special Tax itself.
  • For imported goods: The tax base is the customs value determined under the customs regulations, including import duties.

3. Special Tax Calculation

The Special Tax calculation is determined as follows:

Special Tax = Tax Base × Tax Rate

Example 1: Company A produced and supplied 1,000 cases of beer to customers for a total value of $10,000 (value excluding Special Tax itself).

  • Special Tax Base Calculation: $10,000 × 90% = $9,000
  • Special Tax Calculation: $9,000 × 30% = $2,700

Example 2: Company B sold airline tickets to customers for a total value of $1,000 (value excluding Special Tax itself).

  • Special Tax Base Calculation: $1,000
  • Special Tax Calculation: $1,000 × 10% = $100

E. Obligations and Procedures for Tax Declaration and Payment

Taxpayers have the obligation to file tax returns and pay Special Tax on a monthly basis:

  • By the 20th of the following month for manual/physical tax return submissions.
  • By the 25th of the following month for online tax return submissions (GDT Tax Prefiling App for small taxpayers, and e-Filing for medium and large taxpayers).

Regarding tax payment: Taxpayers can make payments at any partner bank branch of the General Department of Taxation or through the online tax payment system (e-Payment for medium and large taxpayers, or GDT Tax Prefiling App for small taxpayers).