In December last year, the Ministry of Economy and Finance issued Prakas 1536 which provided a table of weighted criteria, to determine whether a taxpayer could be classified as Gold, Silver or Bronze based on the points they reach out of a total score of 20. The Prakas went on to indicate that the Cambodian tax authorities would provide a tax compliance certificate, valid for two years, for each class of taxpayer i.e. Gold, Silver or Bronze.
At the time Prakas 1536 was issued, it was not clear what benefits would be conferred for each color-coded taxpayer classifications – this lack of clarity was finally resolved by Circular 007, officially passed earlier this year, which outlined the following:
- Gold Taxpayers (16-20 points)
Those taxpayers who attain Gold Status will receive a certificate of tax compliance, valid for two years. Gold taxpayers will be able to request a VAT refund below the threshold of KHR 500 million (approx. USD 125,000) without having to undergo a VAT audit. In addition, they will only be subject to one Comprehensive Tax Audit every two years and will not have to undergo a Limited or Desk Audit during the same period.
- Silver Taxpayers (11-15 points)
Taxpayers who obtain Silver Status will receive a certificate of tax compliance also valid for two years. Silver taxpayers may request a VAT refund below KHR 200 million (approx. USD 50,000) without having to undergo a VAT audit. They will only be subject to one Comprehensive Tax Audit every two years, a Limited Tax Audit every year, and no Desk Audit during the same period.
- Bronze (1-10 points)
Bronze level taxpayers will receive a certificate of tax compliance valid for two years.