Cambodia and France Begin Negotiations on Double Taxation Avoidance Agreement

Recently, the General Department of Taxation (GDT) of Cambodia and the French Ministry of Finance held the third round of talks regarding the potential Double Taxation Avoidance and Prevention of Income Tax Evasion Agreement (DTA). During this video conference, both parties further confirmed and recognized the importance of signing the DTA. The GDT stated, "Both sides are committed to accelerating the negotiations and will officially begin the DTA discussions in the near future."

The signing of the DTA aims to eliminate double taxation between the two countries, promoting the healthy development of business and safeguarding the interests of investors. To date, Cambodia has signed similar agreements with 12 other countries and regions, including Laos, Singapore, Thailand, China, Vietnam, Brunei, Indonesia, Malaysia, South Korea, Turkey, and the Hong Kong and Macau Special Administrative Regions of China.

France is one of Cambodia's largest trade and investment partners in Europe. Currently, many French companies, including multinational corporations as well as small and medium-sized enterprises, have established bases in Cambodia. The Cambodian government is dedicated to fostering trade and investment between Cambodian businesses and French companies, as well as businesses from other French-speaking countries. In the first 11 months of 2024, bilateral trade between Cambodia and France reached $470 million.

Hong Vannak, an economic researcher at the Royal Academy of Cambodia, noted that double taxation on the same product significantly increases costs and hinders the healthy development of trade. The Double Taxation Avoidance Agreement is beneficial for all parties, particularly by reducing costs for goods produced in one country and sold in another.