5월 19, 2020
The government has endorsed a draft of Double Tax Avoidance (DTA) with South Korea and Malaysia to pave the way for free trade agreements (FTAs), and increased trade and investment.
The draft, which was approved during a Friday Cabinet meeting chaired by Prime Minister Hun Sen, will be sent to the National Assembly soon.
Cambodia Investment Management group CEO Anthony Galliano told The Post that DTAs abolish and discourage incidents of double taxation, promote bilateral investment, clarity and transparency, stimulate global trade, and, most importantly for Cambodia, attract foreign investment.
He said the Kingdom’s initiative to negotiate FTAs with China, South Korea, and the Eurasian Economic Union is timely and strategic, given recent adverse developments impacting the economy, especially the EU’s partial suspension of preferential trade preferences.
“The successful execution of FTAs will increase economic growth, expand bilateral trade, encourage foreign direct investment, and have a positive impact on employment,” Galliano said, adding that DTA agreements are complimentary to FTAs.
He said DTAs also provide a mechanism to exchange information between tax authorities and help prevent tax avoidance and evasion. DTAs on the other hand are international treaties that help reduce instances of double taxation on income and property.http://https://www.phnompenhpost.com/business/dtas-malaysia-south-korea-works-streamline-trade