Home Events Update on the Cambodian Taxation of International Airlines: What Has Changed After the Meeting with GDT on 27 September 2023?

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Update on the Cambodian Taxation of International Airlines: What Has Changed After the Meeting with GDT on 27 September 2023?

Event Details

Date:
October 19, 2023

Time:
09:00AM - 10:15AM

Venue:
Andersen in Cambodia Office, Phnom Penh, Cambodia

Note: All activities, publications, and events mentioned in this post were conducted under the name VDB Loi prior to our transition to Andersen in Cambodia on 18 September 2024.

Introduction

On 27 September 2023, thanks to Cambodia Airports, IATA and the Department of Civil Aviation, the GDT joined a tax seminar to brief the airlines on various tax implications of their industry. Rightly or wrongly, many airlines were surprised to learn interpretations by the GDT that day on the tax rules which were new to them. Using the “uplift-rule” to allocate income to Cambodia for international airlines, sale of online tickets and Specific Tax, and the question of withholding tax on leasing of aircraft are some examples in this regard. Now, after the GDT has clarified or perhaps re-clarified some of these important tax principles, what changes for the taxation of these foreign airlines? What was new? What are the implications? That is the subject of Andersen in Cambodia’s updated briefing on taxation of airlines in Cambodia, free of charge for clients and invitees.

Highlights

Client briefing on the implications of what the GDT said at the 27 September meeting

Tickets sold online or outside of Cambodia: GDT’s view on Application of the 10% Specific Tax
The GDT apparently now choosing the “UPLIFT-method” for the income tax of foreign non-DTA airlines: how to calculate and what is the impact?
Does Cambodian withholding tax apply to aircraft lease payments? A detailed look at law and DTA aspects
GDT points of view shared on 27 September 2023: Which are supported by law or regulations? Which may be debatable or subject to change?
Service fees, shared costs, allocation of global expenses from the head office: What is the GDT position on Cambodian tax consequences?
Code-sharing, airlines acting as agents for other airlines: Are the tax consequences clear?
The tax exemptions of art. 8 Double Taxation Agreements: Does it include every income? Does it include lease fees?

Speakers

Edwin Vanderbruggen

Senior Partner

Andersen in Cambodia

Edwin has over 30 years of experience as a legal and tax professional, academic, author, and government advisor. He has worked in Southeast Asia for nearly his entire career.

Edwin has built up vast experience advising sponsors, financial institutions, oil and gas supermajors, independent power producers, and other multinational enterprises on their projects in the region, including on multibillion dollar energy and infrastructure projects, mergers and acquisitions, and financing transactions.

He is renowned for his expertise in international taxation and investment, regional tax structuring, and tax planning.

He has assisted the governments of Cambodia (2006-2008 as a full-time adviser to the Minister of Finance), Thailand (2001-2005), Vietnam (2010), and Myanmar (2013-2020) on transactions or on issues such as legal reform, public finance, privatization, and taxation. He has also frequently consulted for IFC, ADB, the United Nations, and governmental agencies of Japan, Korea, and the Netherlands.

In his academic career, he has lectured at six prestigious universities in Europe and Asia, and written nine textbooks and over 40 scholarly articles, some of which have won scientific awards.

Laysym Sim

Partner

Andersen in Cambodia

Laysym is an experienced tax professional with a degree in management. He has over 20 years of work experience, including with KPMG in Cambodia, where he was responsible for relations with the tax authorities. Laysym works with a wide variety of clients, both local and international, across a broad range of industry sectors, with a particular focus on the real estate and transportation industries. He has advised on tax planning for large property projects, employee benefits, and has conducted tax due diligence on several major acquisitions in Cambodia.

Laysym heads the firm’s tax compliance and tax disputes teams. He has a long and proven track record of successful defense of multinationals, banks, and property developers. He also leads our transfer pricing practice in Cambodia.