Schools, Parents Get Tax Breaks Through 2018

Private schools from kindergarten through university, and those who pay for their services, will get a slew of tax breaks until the end of 2018, just after the next national elections, the Finance Ministry announced last week.

The ministry’s taxation department posted the proclamation, effective immediately, signed by Finance Minister Aun Porn Moniroth on August 8, to its Facebook page on Friday.

It says schools earning at least 2 billion riel in annual profits, or about $500,000, will be exempt from several taxes including the minimum annual sales tax and value-added tax.

Parents and students will also be spared from paying the latter.

“The proclamation aims to provide tax incentives to the education sector to encourage the development of human resources and to help reduce the spending of students’ parents or guardians,” it says.

A spokesman for the ministry referred questions to tax department director Vann Puthipol, who could not be reached.

Neither the proclamation nor the Facebook post explain how much the tax breaks will cost the government or why they are set to last until the end of 2018.

[email protected]

Related Stories

Latest News