Taxation
As a transparency bank, we are proud to publish our taxation report. The details of income tax are as follows:
Income tax expense
| 2007 USD |
2006 USD |
|
|---|---|---|
| Current | 2,296,641 | 1,674,593 |
| Deferred tax | 242,203 | 17,678 |
| 2,538,844 | 1,692,271 |
In accordance with Cambodian tax laws, the Bank has an obligation to pay corporate income tax on the higher of either the Tax on Profit at the rate of 20% of taxable profit or Minimum Tax at 1% of turnover inclusive of all taxes except Value Added Tax.
Reconciliation between income tax expense and accounting profit
| 2007 USD |
2006 USD |
|
|---|---|---|
| Profit before taxation | 12,277,762 | 8,360,714 |
| Non deductible expenses (withholding tax on dividend) | 416,456 | 100,639 |
| Taxable income | 12,694,218 | 8,461,353 |
| Tax on profit rate | 20% | 20% |
| Tax charge for the year | 2,538,844 | 1,692,271 |
Other tax matter
The Bank’s tax returns are subject to periodic examination by the Tax Department. Some areas of tax laws and regulations may be open to different interpretation, therefore tax amounts reported in the financial statements could be changed at a later date, upon final determination by the Tax Department.
