1. INTRODUCTION

Cambodia has relatively expensive electricity in comparison to its ASEAN neighbours, in part due to the fact that currently a significant proportion of Cambodia’s electricity is imported. Whilst the level of imports has been steadily decreasing over the last decade, the increasing demand for electricity in Cambodia means that alternative sources must be found to keep up with that demand. Domestic green energy production is not only possible in Cambodia, but would also contribute long term to cheaper electricity prices for consumers, a more attractive environment for investment, an increase in stability of supply and provide national security benefits, notwithstanding the positive environmental impact. This article will explore the laws, regulations and opportunities for renewable producers.

2. THE CAMBODIA BASIC ENERGY PLAN

In 2019 the Ministry of Mines and Energy (‘MME’) produced the Cambodia Basic Energy Plan (‘BEP’) to ensure energy supply for Cambodia, with the principles of affordability, accessibility, security, safety and transparency. Whilst other countries in the region have set ambitious concrete renewable energy goals, the BEP was more focused on guaranteeing energy supply, perhaps understandably, having been drafted against the backdrop of the power shortages of 2019. Moving forward, the BEP recommended the following power generation mix for 2030: coal (35%), hydro power (55%) and other renewable energy (10%). This means that with the exception of hydropower, Cambodia’s renewable energy targets are fairly low in comparison to their ASEAN neighbours, however there is still room for renewable energy producers to grow alongside coal and hydropower plants.

3. THE LAW ON ELECTRICITY IN CAMBODIA

There is a lack of regulations specific to renewable energy in Cambodia. This mean that in general, with the notable exception of solar power, renewable energy producers are dealt with in the same way as those that produce non-renewable power. The 2001 Law on Electricity of Cambodia, and its 2015 amendment, provides the regulatory framework for electric power supply, services and licences, and established the Electricity Authority of Cambodia (‘EAC’).

All electric power service providers are required to have a licence, typically a Generation Licence, issued by the EAC. The Generation Licensee has the right to own, operate and manage the generation facilities. However, it is the responsibility of the EAC to approve tariff rates and charges, meaning that power producers do not have the autonomy to set their own rates. Licensees must submit to the EAC various annual reports and summaries, and follow the standards and procedures set out by the body, for example those regarding metering equipment. The Law on Electricity also gives the EAC the power to revoke licences for violations of the Law, along with monetary penalties for violations of the regulations. The EAC is also required to take into consideration the policies of the Royal Government of Cambodia, through the MME, when operating. Therefore, any policy push towards renewable energy will be reflected by the actions of the EAC.

4. SOLAR POWER

There is a lack of regulations specific to renewable energy in Cambodia. This mean that in general, with the notable exception of solar power, renewable energy producers are dealt with in the same way as those that produce non-renewable power. The 2001 Law on Electricity of Cambodia, and its 2015 amendment, provides the regulatory framework for electric power supply, services and licences, and established the Electricity Authority of Cambodia (‘EAC’).

Cambodia has huge potential for solar energy, with potential generation of up to 5 kWh/m2/day. Of all the renewable energy sources, solar has the largest regulatory framework. In 2018 the Electricity Authority of Cambodia introduced the regulations on General Conditions for connecting Solar PV Generation sources to the Electricity Supply System of National Grid or to the Electrical System of a Consumer connected to the Electricity Supply System of National Grid regulations. The regulations govern both solar power producers that supply energy to the national grid and solar power producers that supply energy directly to consumers.

In order for a solar power producer to supply energy and connect to the national grid, they must be listed on the Power Development Master Plan of Cambodia, or else it must face examination of its feasibility by the Ministry of Mines and Energy (‘MME’). Any solar power injected into the national grid must only be purchased by EDC, under a standardised power purchase agreement approved by the EAC. The regulations also set out the technical standards and conditions required from solar producers, including the limits to DC power injection and harmonic injection.

There are still large swathes of Cambodia without access to the national grid, including rural areas and tourist hotspots such as the islands off the coast of Sihanoukville. The 2018 regulations state that the requirements, standards and conditions are not applicable to off grid solar projects, meaning that solar producers have the opportunity to distribute in these areas without having to rigorously follow the standards they would have to were they connecting to the national grid, although they are responsible for its safe operation. This provides solar power producers with easier access to a large market of those in need of electricity.

As the BEP noted, large scale solar projects often need large areas of land, and with land being a sensitive issue in Cambodia this could act as a discouragement to solar power generation. It therefore recommended rooftop developments along with those on existing dam reservoirs to circumvent this issue.

The hope is that whilst lacking concrete incentives, the clarity the regulations provide will encourage solar producers to consider investment in Cambodia.

5. HYDROPOWER

Hydropower generation has seen a huge increase in the last decade and accounted for around 36% of power generation in 2020. Whilst hydropower is renewable, it does remain slightly controversial due to its environmental impact, with issues such as the flooding of large areas and the blocking of fish migration, as well as forced evictions. These concerns were undoubtedly a factor in the MME halting all hydropower on the main Mekong river until 2030, which has stalled the growth of hydropower to a degree. Other concerns with hydropower include the lack of water during the dry season, the recent record low water levels in general, and the impact other hydropower dams further up river could have, notably the potential dam in Luang Prabang, Laos. Regardless of the controversies, it will continue to increase as a share of power generation in Cambodia and developments on other tributaries continue.

In addition to the requirements in the Law on Electricity, hydropower projects must also be subject to an environmental impact assessment and receive a water use licence from the Ministry of Water Resources Management. Any investment above US$ 50 million must also seek approval from the Council for the Development of Cambodia (CDC).

6. OTHER RENEWABLE SOURCES

The other potential renewable sources often cited as possibilities in Cambodia are wind and biomass. The wind energy generating capabilities of Cambodia have been hotly debated, and the MME, in their Basic Energy Plan, expressed the view that the wind conditions of Cambodia are insufficient and as such, wind projects are difficult to install. However, there are wind farms in Sihanoukville, notably that which powers the Autonomous Port of Sihanoukville, and mountainous areas in the north have been earmarked as having the capability for wind power generation.

Traditional biomass is currently widely used in isolated areas for cooking, and the BEP stated that in 2015 it accounted for 87% of residential energy use. The large variety of agricultural residues left over as a by-product of the agricultural industry, such as rise husks, cassava, coconuts and animal waste, has contributed to its widespread use. The health problems associated with prolonged use of traditional biomass has led to a greater push for the use and supply of clean biomass cooking stoves, the desire for a supply chain for fabricated biomass (such as woodchip), and the promotion of LPG gas as an alternative. In addition, the creation of biomass plants for energy generation, with the large amount of agricultural residue available in Cambodia, is also a source of energy with rich potential.

7. OTHER FACTORS IN THE PROMOTION OF RENEWABLE ENERGY

The Garment Manufacturing Association in Cambodia (‘GMAC’) is also playing a role in increasing the use of renewables in Cambodia, with the garment industry being both an important pillar of the Cambodian economy and a large consumer of energy. GMAC launched the Switch Garment project in 2020, with the aim to promote the use of sustainable energy in the garment industry. Whilst this was done with one eye on the environmental factors at play, the economic benefits the use of renewable energy can bring, with lower energy costs for those in the industry, is a factor in this new project, and may be more influential in renewable adoption.

Certain companies such as H&M and Nike are also members of RE100; a global initiative with the aim of 100% renewable energy. To keep these companies continuing their operations in Cambodia, aligning with their requirements for renewable energy sources is necessary. Thus, using their influential economic position, they have been able to exert pressure and promote the increase in use of renewable energy, which will only continue.

The recent suspension of the extraction of oil from Block A off the coast of Sihanoukville, Cambodia’s first ever attempt at oil extraction, may also play a factor in the promotion of renewable energy sources. One of the intentions of the oil extraction was to provide another source of domestic energy, and the shortfall this creates may lead to the encouragement of other domestic sources, including renewables, although this is of course conjecture at this point.

8. THE LAW ON INVESTMENT

The new Law on Investment (LOI), promulgated in October 2021, provides additional tax incentives to green energy producers. Green Energy producers are able to register as Qualified Investment Projects (QIPSs) and are one of the sectors to be incentivised. The Law offers different options of basic incentives, but the likely the most common used includes an income tax exemption from three (3) to nine (9) years from the time of first earning income. Once the exemption expires, there is then a sliding scale of tax breaks on income tax, starting at twenty-five (25) percent of the tax due for the first two (2) years, fifty (50) percent for the next two (2) years, and seventy-five (75) percent for the final two (2) years. There are also exemptions for Prepayment Tax, Minimum Tax and Export Tax for the duration of the initial period. In addition, there are a host of other incentives. A deduction of one hundred and fifty (150) percent from the tax base is applicable to activities such as research and development, human resource development and the construction of facilities for employees such as accommodation, canteens and nurseries.

Whilst some of the practicalities of the new LOI are to be clarified in a Sub-Decree currently being drafted, the tax incentives to green energy producers are a huge leap forward and should provide an attractive environment for renewable energy producers in Cambodia.

9. ENVIRONMENTAL CODE OF CAMBODIA

The Environmental Code of Cambodia is currently in its 11th draft. Once promulgated, it will provide a host of additional incentives for green energy producers. However, when that will actually be is a source of contention and the momentum of the legislation seems to have stalled somewhat. It is though, something for renewable energy producers and consumers to look forward to and will provide increased economic viability of green energy projects when it is finally introduced.

10. CONCLUSION

The green energy sector in Cambodia is currently underserved and has huge potential for growth into the next decade and beyond. Whilst the regulations and incentives are currently lacking in some areas, the new LOI has helped remedy this and we would expect this to be expanded upon further moving forward, especially once the Environmental Code is promulgated. This continued development has been the case with many areas of Cambodian law, with it being a relatively new legal system, and should provide greater security and opportunities for renewable energy producers in the future.

1. INTRODUCTION

On November 02, 2019, the Law on Construction was promulgated in response to the rapid growth of the real estate sector in Cambodia. The law aims to establish principles and technical building regulations, rules and procedures for the management of the construction sector in the Kingdom of Cambodia. Whilst the law provides a detailed overview, sub-regulations will be released at a later date to clarify the further implementation of certain provisions of the law, and to provide guidance for concerned parties.

With the increasing rate of building construction in Cambodia, the government has been working hard to implement control over the construction sector, especially relating to building compliance. To fully comply with construction laws and regulations, each construction owner is required to obey three procedures: the ‘Prior to Construction’ procedure, the ‘During Construction’ procedure and the ‘Completion of Construction’ procedure.

The Ministry of Land, Management, Urban Planning and Construction (“MLMUPC”) and other relevant institutions have found numerous examples of non-compliance of the building regulations, with many built in a non-standard way which presents a high risk to both construction users and to the public. To avoid further risk, on December 30, 2020 the Royal Government of Cambodia issued Sub-Decree No. 226 on the conditions and procedure for granting, suspending and revoking a Certificate of Occupancy, to control non-compliance constructions, and to maintain standards of security, safety and aesthetics for sustainable living. Once the construction of the building has been completed, each construction owner shall apply for a Certificate of Occupancy (previously known as a “closing permit”).

2. CERTIFICATE OF OCCUPANCY

All construction types which require a construction permit, shall apply for a Certificate of Occupancy, as enforced in the Law on Construction. Furthermore, any construction built before the enforcement of the Law on Construction and constructions built before December 20, 1997, are also required to obtain Certificates of Occupancy, but it applies only to the constructions classified as follows:

• Those built without a construction permit
• Those built in breach of the conditions stated in the construction permit
• Those built with a construction permit, but there is no certificate of compliance or closing permit.

The Certificate of Occupancy is a certificate issued by the competent authority to construction owners to stay, rent or undertake other legitimate activities on the construction located in the Kingdom of Cambodia. The certificate can be issued as long as the construction does not pose a risk to human life, property and has no adverse effect on public security or order.

3. APPLICATION PROCEDURE

There are three competent authorities who are in charge of issuing the Certificate of Occupancy, meaning each construction owner shall file their application to all three competent authorities specified within Sub-Decree 224 on Construction Permits (“SD 224”).

The three competent authorities are:

• The Minister of the Ministry of Land Management, Urban Planning and Construction;
• The Governor of the Board of Governors of the Capital & Provinces; and
• The Governor of the Board of Governors of the Municipalities, Districts or Khans.

3.1 Enforcement Post the Law on Construction

Since the enforcement of the Law on Construction, before using the construction the construction owner shall apply for a Certificate of Occupancy or a provisional Certificate of Occupancy with the competent authority and pay the public service fee. The construction owner is required to file the application form with the following documents in three (3) copies (certified by the competent authority):

• Cambodian Identity Card or Passport of the Construction Owner or Representative
• Certificate of Incorporation and Memorandum and Articles of Association (if a Company)
• Authorization Letter executed by the Company (if a Company)
• Possession Right Letter issued by the competent authority
• Land Plot Letter issued by the Department of Land Management, Urban Planning and Construction, and the Cadastral of the Capital or Province
• Extracts from Actual Construction Plans
• Construction Quality and Safety Inspection Report (if any)
• Construction Contract (if any)
• Relevant Documents of Construction Contractor (if any)
• Land and Construction Material Experimental Report (if any)
• Construction Permit (if any)
• Opening Construction Permit (if any)

Note: The competent authority may require additional documents based on the construction type and conditions.

After the filing date, the review and approval process of the application and supporting documents may take:

• Minister of the Ministry of Land Management, Urban Planning and Construction takes around 20 days; and
• Governor of the Board of Governors of the Capital & Provinces takes around 15 days; and
• Governor of the Board of Governors of the Municipalities, Districts &Khans takes around 10 days.

3.2. Prior Enforcement of the Law of Construction

The procedure and required documents are exactly the same as the application of the owners using the construction after the enforcement of the Law on Construction; other than the timeframe of the approval process. The timeframe of the approval process at the competent institutions takes slightly longer, which is specified as follows:

• Minister of the Ministry of Land Management, Urban Planning and Construction takes around 30 days; and
• Governor of the Board of Governors of the Capital or Provinces take around 15 days; and
• Governor of the Board of Governors of the Municipalities, Districts or Khans takes around 15 days.

Art. 13; 18 and 24, PK 177
Notification No. 341, dated September 25, 2020

3.3. Changing the Use of Construction

In the event the construction owner has changed the construction’s function as stated within the Certificate of Occupancy, or makes any changes relating to the use of the construction, the owner is obliged to renew the Certificate of Occupancy and seek the approval of the competent authority.

• Minister of the Ministry of Land Management, Urban Planning and Construction takes around 30 days; and
• Governor of the Board of Governors of the Capital or Provinces take around 15 days; and
• Governor of the Board of Governors of the Municipalities, Districts or Khans takes around 15 days.

Note: All construction owners who are using or undertaking any business activity on constructions built before the enforcement of the Law on Construction, should have applied for the certificates of occupancy before November 02, 2021. If the application has not been made by this date, they may be liable for a penalty, regulated by the Law on Construction.

Art. 13; 18 and 24, PK 177
Notification No. 341, dated September 25, 2020

4. RENEWAL OF THE CERTIFICATE OF OCCUPANCY

The construction owner is obligated to renew the Certificate of Occupancy as follows:

• Constructions used other than for residential purposes have to renew at least every 5 years;
• Constructions with residential purposes have to renew at least every 10 years.

Please be aware that after the enforcement of the Law on Construction, any construction which is used without a Certificate of Occupancy or is in non-compliance with Law on Construction, is subject to punishment and penalties under Cambodian laws and regulations.

1. INTRODUCTION

There are numerous types of leases, such as operating leases, sale and leaseback arrangements and financial leases. There is also the long-term lease, which is possible to enter into in Cambodia and is considered as a real property right. Also known as perpetual leases, their governing provisions are contained in Book 3 of the Civil Code 2007 (CC) and are further defined in the updated Land Law 2001 (LL). Previous to the implementation of the Civil Code, leases were governed by the Land Law 1992, and any leases created before the promulgation of the Civil Code are still under the jurisdiction of the former legislation. This article will focus on the updated laws and the current creation of long-term leases.

2. TERM

A perpetual lease must be for a period of at least 15 years (Article 244, CC) but can only be for a maximum of 50 years. Any lease term that exceeds 50 years will be automatically shortened to 50 years (Article 247, CC). Clauses for renewal are possible, but again, the renewal period must not exceed 50 years.

3. FORMATION

Article 109 of the Land Law 2001 states that lease contracts shall be entered into according to the will of the parties, and in accordance with the provisions of existing laws.

A perpetual lease must be in writing (Article 245(1), CC). In general, oral leases are possible, however they are treated as leases without a fixed term and can be terminated with prior notice equal to the rental period, meaning they are clearly not considered under the provisions on long term leases.

In order for the rights of a perpetual lessee to be held up against third parties, it must be registered. This registration is done with the Cadastral Office, and this registration is only possible if the lease has been certified by either a notary public or the local Sangkat of the immovable property. This registration means that even if the immovable property is assigned, the lessee is able to exert their rights pertaining to the perpetual lease against the new owner of the property.

Therefore, in simplified terms, to create a perpetual lease, there must exist the will of both parties, it must not be in contravention of any other existing laws or regulations, it must be in writing, and it must be registered.

4. RIGHTS OF A LONG-TERM LESSEE

A perpetual lease is known as an usufructuary real right, and the perpetual lessee possesses rights over the immovable property for the duration of the lease. They have the right to possess, use and profit from the immovable, and can demand removal or prevention of a disturbance that infringes the perpetual lease, exerting these rights against third parties (Article 253, CC). In effect, they have many of the rights of ownership, without, for example, the ability to transfer the immovable property or use it as security.

A long-term lease constitutes a right in rem over the immovable property, and this right may be assigned or transferred (Article 108, LL). Article 252 of the Civil Code sets out the provisions of the right of assignment, and this transfer can occur in three different ways. Firstly, the lessee is able to assign the lease to a third party, with or without consideration. Secondly, the lessee is able to sub-lease the immovable property to a third party, and finally the perpetual lease is subject to transfer through succession. Whilst these are the statutory provisions guiding the transfer on long term leases, in practice, through the provisions in the lease itself, the parties can amend these rights. An example being that the lessor may require their consent for a transfer of the lease.

A curious provision in the Civil Code is the right to demand an increase or decrease in the rental amount (Article 249, CC). If either party deem the rental as no longer appropriate due to a change in circumstance, they can request to the court to amend the amount. The potential application of this provision by the lessor could be seen in Sihanoukville over the past few years, when rentals have increased hugely and a lessor may feel as though a rental amount negotiated a decade ago may no longer be appropriate. Similarly, a lessee may use this provision to help mitigate the effects of the coronavirus pandemic, whereby a rental amount negotiated pre-pandemic may be too much of a burden in post-COVID Cambodia.

5. TERMINATION

Whilst the perpetual lease will expire at the end of its term, subject to any clauses of renewal, there are other ways in which the lease can come to a premature end.
Failure to pay the stipulated rental for 3 years will give the perpetual lessor the grounds to terminate the agreement (Article 250, CC).

In addition, the provisions of the perpetual lease agreement may stipulate obligations of either party, which may lead to termination if there is a breach of these obligations.
Article 254 of the Civil Code deals with the event of termination. Upon termination, the lessee is not compelled to return the immovable property in its original form. However, the lessor is entitled to acquire ownership of any improvements and structures installed without having to pay compensation. The parties have the ability to stipulate changes to these statutory requirements, however this special agreement must be registered.

It should also be noted that if a matter regarding perpetual lease is not covered by the provisions dealing with perpetual leases in the Civil Code, then the provisions relating to general leases will be applied.

6. IMPLICATIONS FOR FOEIGN OWNERSHIP ON LAND

I) Perpetual leases have long been used as a form of protection by foreign investors in Cambodia. For foreign ownership of land, a Land Holding Company is often the preferred method, whereby the foreign party owns 49% of the company and a Cambodian party owns the other 51%. The Land Holding Company is then considered a Cambodian entity and has the right of land ownership. To protect the right of the foreign party to use and operate on their land, the Land Holding Company can then enter into perpetual lease with the foreign party to ensure that they will enjoy the rights over the land for up to 50 years.

II) A perpetual lease also allows foreign person(s) to access financing that they may otherwise not be able to obtain. A perpetual lease is a mortgageable asset, meaning that it can be used by a foreign individual to get financing from a banking institution.

7. CONCLUSION

Long-term leases are an important property right with their own provisions in Cambodian law. Whilst operating in much the same way as a general lease, they differ in several significant ways, such as the minimum term of 15 years, the requirement of registration, the ability to request an increase or decrease of the rental amount, its use in the protection of the rights of foreign land ownership and it’s ability to be used as a mortgageable asset.

1. INTRODUCTION

COVID-19 has dealt a major blow to the Cambodian economy. The pandemic has badly affected the country’s main GDP growth drivers, such as the garment, tourism, and construction industries. Around 400 garment factories in Cambodia have suspended their operations, while around 170 companies in the tourism sector have closed.1 During the COVID-19 period, many companies have encountered serious financial difficulties and, in order to avoid increasing debt, have declared bankruptcy or chosen to dissolve their entities. If the taxpayer walks away and leaves behind a “ghost company,” he or she can be sued, even if no assets remain. Furthermore, directors and shareholders are running the risk of being held personally liable for unpaid taxes, fines, and other penalties.

2. HOW TO DISSOLVE A COMPANY

If a company opts to file dissolution, the process begins with the General Department of Taxation (“GDT”) before liquidation with the Ministry of Commerce (“MOC”). The company would have to liquidate its assets and settle its obligations, subject to the Value Added Tax (“VAT”), write-off or recover debit balances, and repay secured and unsecured creditors before notifying the tax administration about the dissolution of the company. Furthermore, the company should file the final month’s tax liabilities, including VAT, prepayment of profit tax, withholding tax, tax on salary, and fringe benefit tax, as well as the last annual income tax. Finally, the company should write off any expenses and recover the VAT input balance if any input credit is to be carried forward pursuant to Article 255 of the Law on Commercial Enterprises of 2005.

Next, the company must arrange and submit the required documents to deregister the company within fifteen (15) days of the cessation of business. The required documents include:

After the documents have been filed, the taxpayer will receive a notice letter for an audit. The taxpayer must prepare all documents relating to the business for the tax auditors, including monthly tax declarations, annual tax returns, income tax, lease agreements, and other documents if required pursuant to Prakas on Tax Audit No. 270 MoEF.BrK. After the audit has been completed, the taxpayer will receive a reassessment notification letter issued by the tax administration, providing the conclusions of the audit.

There are two possible outcomes of the audit to consider:

1) The taxpayer is not liable for any taxes and will receive a Tax Clearance Certificate for further processing with the MOC.

2) The administration has reassessed the fiscal situation of the taxpayer, and the taxpayer can either:

a) accept and pay the tax amount that is due as per the tax reassessment notification letter; or
b) send a dispute letter to challenge, either in whole or in part, the tax reassessment.

The dispute letter must be submitted within thirty (30) days of the date of the receipt of the notification letter from the tax administration and must include an explanation of the reasons for the dispute, along with supporting evidence and documentation (Article 118 of the Law on Taxation (“LoT”) and the Amendment). The tax auditor will review the dispute letter and issue the reason again if they do not agree with the supporting documents.

According to Article 120 of the LoT, the taxpayer can file a complaint with the Director General of the GDT if they are not satisfied with the tax reassessment or any other decision made by the tax administration. The complaint must be submitted to the tax administration within thirty (30) days of the receipt of the letter of notification for tax collection. The tax administration must communicate its decision to the taxpayer within sixty (60) days of the receipt of the complaint letter, to confirm the accuracy or inaccuracy of the tax reassessment or any other decision made by the Tax Administration that the taxpayer has contested.

If the taxpayer does not accept the new decision from the tax administration, they can file a complaint with the Committee of Tax Arbitration (“CTA”) within thirty (30) days of the receipt of the new decision. The CTA is responsible for reviewing, resolving, and issuing decisions on disputes regarding customs, excise, and tax arising from final decisions or rulings by the General Department of Customs and Excise (“GDCE”) and/or the GDT.

The CTA is comprised of:

• The Minister of Economy and Finance as Chairman;
• The Secretary General of the Ministry of Economy and Finance (“MEF”) as Vice-Chairman; and
• A Representative of the National Accounting Council, the General Director of the General Department of Policy for the Economy and Public Finance, and the General Director of the General Department of Internal Audit.

The CTA’s members will conduct meetings, invited by the Chairman (or Vice Chairman), with relevant officials of ministries, representatives of institutions and the private sector, auditors, and, in certain cases, the General Director of the GDT or the GDCE, as is necessary, to provide explanations or comments. Additionally, the CTA will consist of one secretariat, as the Chief of Staff, who will assist with the overall administration of the CTA and who will issue the CTA’s decision within 60 days after the meeting. The organization and functioning of the CTA are determined by Prakas 1470 MEF.Prk (6 November 2016), which details the rules and procedures for resolving tax protest letters. Also, the Royal Government of Cambodia (RGC) has issued a Sub-Decree (6 January 2016) on the organization and functioning of the CTA.

3. BNG COMMENTS

• The company must pay the correct amount of taxes on time to avoid additional taxes and penalties.
• The taxpayer must close the accounting book and clear all taxes before filing documents to deregister the company.
• The taxpayer must explain his or her reasons for contesting the tax reassessment in the dispute letter, and include supporting evidence and documentation.
• Dispute letters and tax payments must be submitted and paid on time.