Notification on market interest rate for loan 2022

NOTIFICATION

ON

MARKET INTEREST RATE FOR LOAN FOR 2022

Pursuant to regulations of chapter 3 article 15 of the Prakas no. 543 MEF.PrK dated 8 September 2021 on the tax on salary, Instruction no. 7015 GDT dated 13 March 2020 on the implementation of withholding tax on fringe benefits tax on loan to employee and Instruction no. 10979 GDT dated 25 May 2022 on the confirmation documents for interest amongst related parties, the General Department of Taxation would like to determine market interest rate for loan for 2022 based on the calculation of average interest rate of loan from 11 (eleven) big local commercial banks as follows: -

-         8.78% per annum for Khmer Riel

-         8.35% per annum for United State Dollars.

The General Department of Taxation would like to add that the interest rate above shall be used for the purpose of implementing withholding obligation on tax on fringe benefits on loan to employee and objective to limit interest rate from related parties.

Accordingly, all tax entities and enterprises who are taxpayers shall implement the theme of this Notification properly and effectively.

THE GENERAL DEPARTMENT OF TAXATION