Tax update on the change of shareholders with the GDT
Taxpayer has an obligation to update the change of shareholder(s) with the General Department of Taxation within 15 working days after receiving approval letter issued by the Ministry of Commerce.
Step 1: The taxpayer shall inform the General Department of Taxation by writing a letter which must contain a clear objective and references such as supporting documents.
Step 2: The taxpayer shall complete application form for taxpayer information update (form 101 and 101-B).
Step 3: After completing the above steps, the taxpayer shall submit the signed and stamped letter and forms and attach relevant supporting documents to tax administration of the General Department of Taxation such as:
- Valid Cambodian identification or passport of chairman of board of directors, shareholders, managers or representatives
- Registration letter or permit letter issued by relevant ministries/institutions
- Two current photos taken no more than 3 months ago with size 35 x 45 mm and white background of chairman of board of directors, shareholders, managers or representatives
In practice, the General Department of Taxation will also ask for Share Purchase Agreement in order to verify the transfer or sale price for Stamp Tax calculation.
Step 4: Along with the submission, the taxpayer will be required to pay the following to the General Department of Taxation:
- Stamp Tax which is 0.1% of the value of the shares which have been transferred or sold
- Public service fee for the information update of KHR200,000
Step 5: The General Department of Taxation will review the documents and transfer them to National Tax School for processing the information update in the system. The National Tax School will contact the taxpayer in case any additional document is required to be submitted or if the relevant persons are required to complete thumbprint scanning and photo-taking.
For more details on the calculation of Stamp Tax or any other matters, please contact us at mykhadvisor@outlook.com.
