No opportunity to waive VAT on Cambodia casino revenue

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No opportunity to waive VAT on Cambodia casino revenue

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The decree – “Rules and Procedures for the Implementation of Tax Obligations for Commercial Gambling Companies” – also subjects casinos to another tax obligation. A 1-percent monthly prepayment of tax on income.

Industry consultant Daniel Li, a former advisor to the Secretariat of CGMC, noted to GGRAsia that the two-year implementation delay was granted as a support to the recovery of the country’s gaming industry following the Covid-19 pandemic.

The gaming regulator stated: “The government has studied and did the consultation with relevant stakeholders prior to launching this Prakas.”

The gaming industry expert also said: “As it stands, there has been no formal indication from the Ministry of Economy and Finance regarding any further waivers or extensions. Operators should therefore assume that full compliance is now required.”

So confirmed the country’s gaming regulator, the Commercial Gambling Management Commission (CGMC) in an emailed response to GGRAsia, adding there was “no… room” to waive the VAT portion.

Donaco International Ltd, an Australia-listed operator of border casinos in Cambodia and Vietnam, flagged in a May 9 filing that casino firms in Cambodia had generally expected that the deferment of the 10-percent VAT on GGR, along with other tax obligations required by Prakas No.1080, “would continue indefinitely thereafter”.

The person additionally noted: “Prakas No.1080 is fully implemented to accumulate national budget [funds] as well as to ensure the effective management of the commercial gambling industry, thus there is no more room for waiving any of tax obligations.”

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