Key Highlights
- The Ministry of Economy and Finance (“MEF”) issued Prakas 738, detailing the rules and procedures for collecting the tax on means of transportation (“Transportation Tax”), which will take effect from 1 January 2025. This new Prakas supersedes the earlier Prakas 531 issued in 2018.
- Prakas 738 introduces new categories for trailer trucks, semi-trailers, passenger buses, and electric vehicles, and modifies tax rates for tourist vehicles, light trucks, and passenger cars.
- Certain vehicles, such as state-owned ambulances, fire trucks, military vehicles, and vehicles owned by foreign embassies or international organizations, remain exempt from the Transportation Tax.
- Vehicle owners must annually declare and pay the tax between June 1 and November 30. Payments can be made at various locations, and tax payment stickers must be affixed to the vehicles. The GDT will monitor compliance starting January 1 each year.
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Clint O'Connell
Partner, Managing Director
Cambodia
Clint O'Connell is a Partner and Managing Director of DFDL in Cambodia.
