As double taxation agreements (DTAs) between Laos and the Philippines with Cambodia are set to enter into force soon, Cambodian economists are optimistic that foreign direct investment (FDI) from the two countries and bilateral trade will rise.
Cambodia’s general department of taxation believes the DTAs are not designed to avoid double taxation; they also build investor confidence and certainty by offering several benefits.
According to a domestic media outlet, the benefits include clear tax rules between the contracting states, reduction or elimination of certain taxes, prevention of tax discrimination between domestic and foreign companies, mechanisms for resolving tax disputes, and systems for information exchange to combat tax evasion.
At present, Cambodia has DTAs with 11 countries and jurisdictions.
Cambodia has completed technical negotiations on a DTA with Myanmar and is currently negotiating DTAs with six countries: the United Arab Emirates, Japan, Morocco, France, Qatar and Azerbaijan.
