In November 2020, Cambodian parliamentarians approved a plan to change how casinos pay taxes in order to get more money into the country.That plan is now in motion.However, its success depends on the willingness of operators to participate.
Until now, casinos in the country paid a flat rate of tax on their profits.The purpose of the change, according to the government, was to increase the transparency and clarity of gross gaming revenue (GGR).
From the beginning of this year, Cambodia will calculate the tax rate on a sliding basis according to the amount of casino earnings.In order to realize this, the business first needs to file a financial declaration using actual data.
casino makes too much money
Cambodia's casino industry is facing an identity crisis due to an influx of dishonest people, especially Chinese gangs.They seem to do anything to make money - torture, kidnapping, slave labor.
As a result, the government has launched a crackdown to get rid of the vicious people.However, doing so would require a financial burden, and the casino industry, including businesses like NagaWorld, would help with that burden.
Casinos operating within integrated resorts (IRs) contribute 4% of revenues from VIP operations.They also have to give up 7% of their income from mass games.
Everything outside the IR will pay 7% of your income.For tax purposes, income is money earned from gambling less money won at gambling establishments.
The Ministry of Economy and Finance sees this as a positive move, according to the Khmer Times.This will give the government greater accountability for the gambling business while increasing transparency on the part of the operators.
NagaWorld is rallying around for this change.From 2019, it will pay approximately $3040 million in taxes, or an effective tax rate of 5.5%, according to its financial statements.
Now, casinos can decide to only deal with VIPs.Alternatively, you could be more creative in classifying your customer base.
Whatever approach casinos take, the Cambodian government's position is clear.Casinos must pay their taxes in full on time, unless they are likely to close permanently.
Another name for casino
Cambodia plans to introduce several other changes to the gaming industry in the coming years.A big one is that since last year, businesses have had to apply for new licenses or renew their current licenses.
In addition, Cambodia has three “gaming zones” in the country. One is a zone that bans all gambling within its boundaries, and the second is for areas that are already legal and have licensed operators.
The third type targets "advantageous zones" where the government wants new growth.This includes Sihanouk and Koh Kong provinces.
Sihanouk province, home to Sihanoukville and its crimes, is trying to clean up its image.However, local media reports say many criminals who once operated there have moved to Koh Kong.
Another change in Cambodia is in marketing.Casinos are no longer called casinos.Casinos should not be called casinos, but “commercial gambling” establishments.
The government wants all casino signage and customer facing media to be rebranded.We believe this will make it clearer that the casino is an entertainment center rather than a gambling hub.But changing the name doesn't change what it is.
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