Double-tax waiver draft approved
Thai-Cambodian investment prioritised
The cabinet yesterday approved a draft agreement for an exemption from double taxation between Thailand and Cambodia, aiming to promote investment links with the private sectors of the neighbouring nations.
According to Kobsak Phutrakul, assistant minister to the Prime Minister's Office, once in effect the deal will play a key role in enhancing Thai investment in Cambodia.
Thai investment projects will be also entitled to double-taxation waivers under the agreement, though they already enjoy promotional privileges from Cambodia, Mr Kobsak said.
"The agreement is hoped to enhance Thailand's competitiveness, support capital movement, trading, international logistics and prevent tax evasion between the two nations," he said.
The agreement on the double-taxation exemption is one of two documents to be endorsed during Prime Minister Prayut Chan-o-cha's official visit to Cambodia tomorrow.
The visit is Gen Prayut's second official trip to Cambodia as a guest of Cambodian Prime Minister Hun Sen. The first visit was on Oct 30, 2014.
According to the Foreign Ministry, the two leaders will co-chair the third Thailand-Cambodia Joint Cabinet Retreat in Phnom Penh tomorrow morning.
They will hold talks on a wide array of bilateral issues, spanning politics, security, economics and society.
Gen Prayut will highlight strengthening and enhancing cooperation in border development, labour, trade and investment, agricultural produce, connectivity, and regional and international frameworks.
The first document is a joint statement demonstrating the intention of the two countries to broaden their cooperation under a partnership for peace and development.
The second is an agreement on the exemption from double taxation that will benefit the private sectors of the two countries and promote further investment between Thailand and Cambodia.
The Thai and Cambodian prime ministers will witness the signing of the two documents.
Gen Prayut and Hun Sen will also preside over the inauguration of the Cambodia-Thai Friendship Park in the centre of Phnom Penh.
Thailand's prime minister will also pay a courtesy call on Samdech Vibol Sena Pheakdei Say Chhum, Cambodia's acting head of state and president of the senate.
To cap the visit, Gen Prayut will lay a wreath at the statue of Cambodia's late king, Norodom Sihanouk.