Local and International Telecommunications Services (សេវាទូរស័ព្ទ)

Specific Tax for Local and International Telecommunications Services-Cambodia Tax

Local and International Telecommunications Services are subject to specific tax rate at 3%.

For locally supplied services, the tax base is the invoice price of the services supplied.

Local Tax Base for Telecommunications Services = Selling price /1.1/1.03

Specific Tax on local Telecommunications Services = Tax Base x 3%

Example 1

ABC Mobile Phone Company made revenue from telephone service of $55,000 ( included any taxes ) during May 2018.

Required:

Calculate Specific Tax on certain service if any.

Answer

Amount before VAT = $55,000/1.1=$50,000 ( amount before 10% VAT)

Specific tax base = $50,000/1.03=$48,544

Specific tax on certain service ( telephone service)=$48,544 x 3%= $1,456