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Three Books For Small Taxpayers: What It Is and How To Use It

Introduction

Over the last few years, the General Department of Taxation (GDT) has strengthened the tax collection in the Kingdom of Cambodia. The designation of the Small Taxpayer who was previously estimated regime taxpayers, were now directed to submit the Small Taxpayer monthly tax return and pay the relevant taxes such as VAT, Tax on Salary, Withholding Tax on rental, etc. by 20th of the following month.

Moreover, following Prakas 1820 a Small Taxpayer can use a simple accounting system that allows single-entry accounting, therefore a business can record income on a cash basis rather than an accrual basis.

In this article, we will cover the three books used for Small Taxpayer accounting, show you a few examples, and lastly, show you how ASEANTAX can automate your monthly tax filings. If you are a Small Taxpayer in Cambodia or are thinking of starting a business, this article is for you.

What are the Three Books for Small Taxpayers?

On 25 December 2015, the Ministry of Economic Finance [MoEF] issued Prakas no. 1820 to provide further rules and procedures for the implementation of the simplified accounting for small taxpayers mentioned in the introduction above.

The objective of this Prakas is stated to provide guidance on the simplified accounting requirements in order to facilitate the Small Taxpayer’s accounting practices. In summary, Prakas 1820 stipulates that the Small Taxpayer is required to maintain 3 simplified accounting books as outlined below, and submit to the General Department of Taxation every month before the 20th calendar date:

Purchase Day Book:

The Purchase Day Book should record the following expenses:

  • Fixed assets
  • Goods for sales or for supplying services
  • Raw material
  • Wages and salaries [on a practical level, most tax branches require the wages & salaries to be in a separate ‘book’]
  • Utilities
  • Rental [office expense]
  • Other expenses

Sales Day Book:

  • All daily transactions involved in supplying goods and services are recorded here.

Inventory Book:

  • Beginning inventory
  • Purchases during the tax period [monthly]
  • Ending inventory
  • Record goods sold

Real Example of the Three Books for Small Taxpayers

Closing

We get it- tax should be simple. It should be within reach of every taxpayer. That’s why we made ASEANTAX.

Whether you are using our web interface for your accounting and taxes, or perhaps you may be using ASEANTAX POS for your retail food business.

All the Three Books for Small Taxpayer are automatically generated when using ASEANTAX, no need to worry about creating your own.

Why ASEANTAX is risk-free for you to try

Do It Yourself: ASEANTAX was made for the taxpayer, it’s simple to use, just enter your information into our online software and go! [in English]

Done With You: Our team of tax professionals is available for any tax-related question you may have.

Done For You: Our ASEANTAX online tax calculation software will calculate your monthly and/or yearly tax declaration in real-time, applying any and all exchange rates for all different sales, purchases, salary tax, and more!

Print ALL your monthly tax declaration forms in Khmer. IT’S THAT EASY


Disclaimer: This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal, or accounting advice.

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