Find Job or Recruit Staff: 093 682 682 | 078 868 848 | info@pp-hr.com | Recruitment Service

A Lesson Summary -Specific Tax on Certain Merchandises and Services

Specific Tax on Certain Merchandises and Services-Summary

The Specific Tax on Certain Merchandise and Services is imposed on a number of local and imported products, and services. Specific taxes charged once. We can classify three specific taxes.

1.the local producers of following goods are subject to specific tax :

  • gazed soft drinks at 10%
  • Alcoholic product and wine at 35%
  • Beer at 30%
  • Cigarettes at 20%

Tax base for specific tax (example for beer) = (invoiced amount/1.1/1.3) x 90% (see note)

So Specific tax (example for beer) = tax base x 30%

Note:

Invoiced amount/1.1/1.3 x 90%

-1.1 represent 10% VAT

-1.3 represent 30% Specific tax on beer

-90% represent tax base at 90% rate

Example 1

Local ABC Factory in Cambodia produced and sold gazed soft drinks brand ” AA ” (included any taxes) = $2,000
Required:
Calculate Specific Tax on certain goods

Solution 

Specific Tax on certain goods
Tax Base=2,000/1.1/1.1 x 90%=$1,487.6
Specific tax = 1487.6 x 10%=$148.76

Example 2

Local XYZ  Factory in Cambodia produced and sold wine brand ” Drunk Forever ” (included any taxes) = $4,000
Required:
Calculate Specific Tax on certain goods

Solution

Specific Tax on certain goods
Tax base = 4,000/1.1/1.35*90%=2424.24
Tax = tax base x 35%=2424.24*35%=$848.48

2.The services subject to this specific tax are as follows:

  • Entertainment services** at 10%.
  • Air transport of passengers for local or international air transport at 10%.
  • telephone services for local or international call at 3%.

**Note: Entertainment services include concerts, music, soundtracks, stage shows … massage, steam, Sauna, Car Racing, Motor Racing, Snooker, Bowling, All games and Hockey.

Example 4

BEST MASSAGE HERE Company make revenue of $2,000 (excluded any taxes ) from massage during October.

Required:

Calculate Specific tax on certain service if any.

Solution 

Specific tax base = $2,000

Specific tax on certain service ( massage) = $2,000 x 10%=$200

Example 5

BEST MOBILE PHONE Company make revenue from telephone service  of $22,000 ( included any taxes ) from different customers during October.

Required:

Calculate Specific Tax on certain service if any.

Solution

Amount before VAT  = $22,000/1.1=$20,000 ( amount before 10% VAT)

Specific tax base = $20,000/1.03=$19,417.48

Specific tax on certain service ( telephone service)=$19,417.48 x 3%= $582.52

3.Specific tax for Mix goods and entertainment services

Some goods ( e.g drinking water, meal , foods, wine, beer etc) may sell in entertainment place (e.g. KTV), so these goods also are subject to specific tax at 10%.

Example 6

MY BEST KTV Company made revenue ( included any taxes ) from  Karaoke room as follows:
-Fruit……………………$110
-Drinking water…….$11
-Room Price…………..$22

-Foods …………………$220

Required

Calculate specific tax if any.

Solution

Because fruit , drinking, goods are sold in karaoke room, so they are subject to specific tax at 10% rate.

Amount before VAT = ($110+$11+$22+$220)/1.1=$330

Specific tax base=$330/1.1=$300

Specific tax = $300 x 10%=$30

Time of  Tax Payment

The local taxpayer producing or supplying these merchandises or services is responsible to pay this tax to the tax administration by the 20th of the month following the month that the supplies are made.


*** Phnom Penh HR  is the best recruitment and consulting in Cambodia and Asia , and our services by ACCA | CPA, Diploma in Cambodia Tax, Tax Agent and MBA.
*** Please contact Phnom Penh HR now via 093 682 682 | 078 868 848 | info@pp-hr.com

Find Jobs Here !

SHARE