Prakas (ministerial regulation) on the rules and procedures governing Patent tax
This Prakas was enacted on 25th December 2015 the Ministry of Economy and Finance in order to define and implement measures on the taxpayer's business activities through self-assessment regime in Cambodia. Patent tax is annual tax, which is set on the business activities by type and level of turnover, and by taxpayers. The patent tax needs to be paid at the beginning of the business and from January 1 to March 31 each year at the tax administration of the business location. In case businesses are firstly commenced within the first 6 months of the taxation year, tax payers will pay tax throughout the year. Meanwhile, if the businesses are opened within the last 6 months of the taxation year, half of patent tax will be paid only.
The forms of patent tax payment are:
1. Taxpayers who have many business activities must pay different patent taxes for each business.
2. Appendix activities of business activity are considered as one business only, so taxpayers pay only one patent tax.
3. Taxpayers who have branches, stores, factories, and workshops for the same business in the same city or province pay only one patent tax.
4. If those sites are at different places so the taxpayers must pay for each. In addition, the level of payment depends on small or medium or large or turnover or branches or stores or factories for business activities which has different location. Patent has value for only the owner and in case of changing the location or new business is to pay taxes again. If a business is changing ownership and taxes already paid so the new owners do not need to pay anymore. This is for only the change or new business activities or blood relatives only legitimate successor. Valid patent must be shown at the business location and the time to bid on consulting fees or survey fees in the provision of goods or services