Cambodia is Malaysia`s eighth largest trading partner in Asean and the 50th largest in the world. Cambodia has double taxation agreements with Brunei, China, Indonesia, Malaysia, Singapore, South Korea, Thailand and Vietnam. „We have been waiting for the agreement for so long. Cambodia is the last Asean member country to sign the DBA with Malaysia. It was signed in September 2019 and is now ratified, so all systems will implement it,“ said the ambassador. In order to facilitate the cross-border flow of trade, investment, finance and technical know-how between the two countries, the Malaysian and Singaporean governments signed the Double Taxation Prevention Agreement (DBA). When a company or person participating in a business in a contracting state participates directly or indirectly in the administration, control or capital of a company of the other State party, the companies concerned are referred to as related enterprises. The terms and transactions between the related entity are different from those between independent companies, which has an impact on the profitability and income of the businesses. With respect to associated businesses, the DBA provides that contracting states may consider taxable income that would otherwise be due if the parties were independent and would tax the firms accordingly. When a contracting state taxes a resident business on profits and those profits are already taxed by the other contracting state, but the first state considers that those profits would have been generated by the company if it did not meet the condition of the related business, it makes an appropriate adjustment of the amount of tax collected on those profits if the other state considers that the correction is justified. The competent authorities of the contracting states consult, if necessary. He added that the introduction of double taxation had deterred some Malaysian investors from coming to Cambodia. Now that the DBA has been ratified, other Malaysian companies are expected to explore Cambodia`s business and investment opportunities.