EU Twinning Project: Cambodia Strengthens Its Tax System Across 3 Pillars

• 3 pillars. The project covers personal income tax (PIT), tax audit systems and human resources management.
• October 20, 2026. Publication date of the EuroCham interview with Solveig Merrien, relayed by Cambodia Investment Review.
• Phnom Penh. The coordination team works on site, alongside Cambodia's General Department of Taxation (GDT).
• 3 institutional partners. Expertise France (AFD group), the French DGFiP and Finland's HAUS institute are delivering the project. The EU Delegation to Cambodia is the contracting authority.
• Capital gains tax included. The project also covers capital gains tax (CGT), in addition to personal income tax.

The interview doesn't give a detailed schedule. Here are the project's main stages, from the groundwork to the expected next steps.

1. Groundwork: the EU chooses the Twinning model, a cooperation tool between administrations. It places civil servants from member states inside the beneficiary institution, in this case the GDT.
2. Consortium formed: Expertise France and the French DGFiP team up with Finland's HAUS institute to support the GDT.
3. Setup on the ground: a resident adviser, a project assistant and a language assistant coordinate activities from Phnom Penh. They are guided by Cambodian, French and Finnish project leaders.
4. Implementation: short-term experts from the DGFiP and HAUS step in. They work with their GDT counterparts on income tax, tax audit and human resources.
5. Private sector consultation: EuroCham and other business associations take part in discussions on the reforms.
6. October 20, 2026: EuroCham Cambodia publishes the interview, which describes a typical week inside the GDT and the five-year vision.
7. Expected next steps: the stated goal is a stronger and more self-sufficient Cambodian tax system within five years.

The project is organized into three components, with complementary players. Here is what the interview lets us identify.

• No new rules announced. The interview presents an institutional capacity-building project, with no new rate or specific new obligation for residents.
• A more structured administration. The GDT is working on its audit and income tax methods. Well-kept records will be easier to process.
• Local entrepreneurs affected. Owners of guesthouses, cafés, agencies and service companies should prepare for stricter tax compliance.
• Keep an eye on capital gains tax. If you plan to sell company shares or other assets, follow developments on CGT with your adviser.
• The private sector's voice is heard. EuroCham and other associations take part in the discussions. Businesses can pass on their feedback through these channels.

1. Step 1: check your tax status. Review your resident or non-resident situation and your filing obligations with a licensed accountant.
2. Step 2: keep your supporting documents. Store contracts, invoices, bank statements and payslips in an organized file, both paper and digital.
3. Step 3: file on time. Mark the monthly and annual deadlines that apply to your status or your company in your calendar.
4. Step 4: separate personal and business accounts. Clear bookkeeping makes any potential audit easier.
5. Step 5: plan for any sale. Before selling a business, shares or property, get advice on how capital gains will be treated.
6. Step 6: use official channels. Get your information from the GDT or a recognized adviser, not from rumors or unverified intermediaries.
7. Step 7: follow chamber of commerce news. Publications from EuroCham and other business associations relay consultations and changes to the tax framework.