Gov’t signs double taxation agreement with Cambodia

The Macau SAR has signed an agreement to avoid double taxation with the Kingdom of Cambodia, the eighth agreement of the kind signed by the SAR with other jurisdictions.

The city currently has similar agreements with Mainland China, Portugal, Belgium, Mozambique, Cape Verde, Vietnam and Hong Kong.

Secretary for Economy and Finance, Lei Wai Long, and the Deputy Prime Minister and Minister for Economy and Finance of the Kingdom of Cambodia, Aun Pornmoniroth, signed the agreement on April 23 to eliminate double taxation of income taxes and prevent fraud and tax evasion.

‘The Macau SAR has signed Conventions with other tax jurisdictions to eliminate double taxation, in accordance with the principles of equality and mutual benefit, the aim of which is to avoid and eliminate double taxation for the same income base earned by the same taxpayer,’ the Finacial Services Bureau (DSF) indicated.

‘The scope of this agreement is aimed at the supplementary income tax, the professional tax and the urban property tax in the Macao SAR, as well as the income tax and the wage tax in Cambodia’.

The two jurisdictions also agreed with reciprocity clauses for different types of income, namely: dividends, interest, royalties, capital gains; income from real estate; profits of associated companies; pensions, public remuneration; and income earned as an artist, athlete, teacher or researcher.

‘In the future, the Macau SAR Government will endeavour to promote the negotiation and signing of more tax agreements with countries and regions with which it has close contacts in terms of economy, trade and investment, including Portuguese-speaking countries and the countries along with the One Belt, One Road in order to expand the MSAR’s network of international fiscal cooperation,’ authorities noted.