The General Department of Taxation (GDT) has rejected a claim issued by Joy School in a statement on June 9 requiring parents to pay half of the 20 percent income tax, saying it is the obligation of the school.
The statement from Joy School said, “Based on the Ministry of Education, Youth and Sport (MoEYS), parents are required to pay a 20 percent tax on tuition fees to the GDT every year. And, Joy School has been paying the tax for parents for three years already.”
However, in fact, GDT does not tax the tuition fees parents pay to the school. The 20 percent mentioned by the school is the tax on the income of the school, and it is the sole obligation of the school to pay the tax, not parents.
It further stated that from this year onwards, parents are required to share the burden of paying half of the 20 percent tax.
According to an announcement issued by the Office of the Council of Ministers on February 27, 2023, private and public education institutions nationwide are exempt from paying taxes, except the tax on salary, renting property and patent, starting from 2024 to 2028.
This tax exemption is part of a policy to promote the education sector in Cambodia, as stated in the announcement.
Yesterday, Im Phorney, the father of a Joy School student, posted on his Facebook account complaining that the tax is high and wishing that the announcement made by Joy School is not true. The post has about 60 comments and 70 shares.
In a comment on the post, one user named Dach Mony Liv added the announcement of the Office of the Council of Ministers stating that there is no tax on tuition fees.
In response to Dach Mony Liv, Phorney said that based on the announcement, it means the statement issued by Joy School is false.
Another Facebook user asked in a comment what type of taxation Joy School refers to and further added he really does not understand Joy School’s statement.
After people posted and shared Joy School’s statement on Facebook, the GDT issued a statement denying the claim made by Joy School.
It said, “The 20 percent tax on income is the sole obligation of the school to pay, not the parents of the students.”
The statement further demanded that Joy School make changes to the false information in its statement. Additionally, GDT called for relevant ministries, especially MoEYS, to cooperate and find any education institutions that do not abide by taxation laws.
Kiripost has asked Joy School for comments on GDT’s announcement via Telegram but the school has not replied yet.