KICPAA ATQ flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Tax on Income rate

The standard corporate income tax rate in Cambodia is 20% of taxable profit for resident companies; non-residents are taxed on Cambodian-source income.

Minimum tax

A 1% tax on annual turnover (excluding VAT) that applies when it exceeds the Tax on Income liability; it ensures a minimum contribution from businesses.

Monthly TOI prepayment

A monthly prepayment of 1% of turnover that is credited against the annual Tax on Income liability; it is filed with the monthly tax return.

Withholding tax rates

15% on Cambodian-source payments to non-residents; 15% on interest to residents (10% for banks), 10% on services and royalties, and 15% on rent and dividends.

VAT rate and filing

The standard VAT rate is 10%; monthly VAT returns are due by the 20th of the following month. Exports and certain supplies are zero-rated.

Specific tax

An excise tax on selected goods such as alcohol, tobacco, petroleum, and vehicles, at rates ranging from 3% to 35% of the selling price.

Public lighting tax

A 3% tax on the sale of alcohol and tobacco products in Cambodia, collected to fund public lighting.

Accommodation tax

A 2% tax on hotel and lodging services charged to guests, in addition to VAT.

Patent tax

An annual business registration tax due at the start of the business year, with the amount determined by the taxpayer's turnover tier.

Salary tax brackets

Personal income tax on employment uses progressive monthly rates from 0% to 20%, after a 150,000 riel allowance per dependent.

Tax audit types

Desk audit, limited audit (usually up to 3 years back), and comprehensive audit (up to 10 years back), conducted by the General Department of Taxation.

Late filing penalty

A 10% penalty on late-filed tax returns, plus 1.5%-2% monthly interest on unpaid tax, and additional penalties for underreporting.

Tax dispute process

A taxpayer may object to the GDT within 30 days, appeal to the Tax Tribunal, and then bring the case to court.

CFRS framework

Cambodian Financial Reporting Standards: full IFRS for public-interest entities, IFRS for SMEs for non-public entities, and National Accounting Standards for others.

Accrual basis

Revenues are recognized when earned and expenses when incurred, regardless of when cash is received or paid.

Revenue recognition steps

Under IFRS 15: identify the contract, identify performance obligations, determine the transaction price, allocate it, and recognize revenue when obligations are satisfied.

Inventory valuation rule

Inventory is measured at the lower of cost and net realizable value; FIFO and weighted average are permitted, but LIFO is not.

Deferred tax

A tax effect arising from temporary differences between accounting and tax bases, recognized using the liability method at expected tax rates.

Audit risk model

Audit risk = inherent risk × control risk × detection risk; the auditor controls detection risk through the nature, timing, and extent of procedures.

Materiality

The threshold above which omissions or misstatements could influence users' decisions; performance materiality is set lower, often 50%-75% of overall materiality.

Audit opinion types

Unmodified (unqualified), qualified, adverse, and disclaimer of opinion; the type depends on the nature and pervasiveness of misstatements or scope limitations.

Internal control components

Control environment, risk assessment, control activities, information and communication, and monitoring, as defined in the COSO framework.

Professional skepticism

An attitude of questioning and critical assessment of audit evidence, neither assuming management is dishonest nor assuming complete honesty.

Independence requirements

Auditors must have no financial interest in the client, no close family in key positions, and must not provide prohibited non-audit services.

KICPAA role

The Kampuchea Institute of Certified Public Accountants and Auditors regulates the profession, registers auditors, and enforces ethical standards in Cambodia.

Ethical principles

Integrity, objectivity, professional competence and due care, confidentiality, and professional behavior, as set out in the professional code of ethics.

Company forms

Private limited company, public limited company, partnership, and sole proprietorship; registration is with the Ministry of Commerce.

Directors' duties

Directors owe duties of care, loyalty, and good faith; conflicts of interest must be disclosed to the board.

Break-even point

Break-even units = fixed costs ÷ contribution margin per unit, where contribution margin = selling price − variable cost per unit.

Material price variance

(Standard price − actual price) × actual quantity purchased; a positive result is favorable, a negative result is unfavorable.

Net present value

NPV = present value of cash inflows − initial investment; projects with NPV greater than zero are accepted.

Absorption vs variable costing

Absorption costing includes fixed production overhead in product cost; variable costing treats it as a period cost; the difference equals the change in inventory times the fixed overhead rate.