Cambodia and Azerbaijan have completed the second round of negotiations on a draft Double Taxation Agreement (DTA) covering income taxes, marking the conclusion of technical level discussions and opening the way for the two countries to strengthen tax cooperation and create more certainty for cross border investment.
The negotiations were held from September 8 to 11 in Baku, Azerbaijan, between officials from Cambodia’s General Department of Taxation (GDT) and the State Tax Service under Azerbaijan’s Ministry of Economy. Both delegations worked through outstanding provisions from the first round and reached agreement on the remaining tax clauses.
Key Facts
| Category | Details |
|---|---|
| Agreement | Double Taxation Agreement |
| Countries | Cambodia and Azerbaijan |
| Negotiation round | Second |
| Date | September 8 to 11, 2026 |
| Location | Baku, Azerbaijan |
| Cambodia’s agency | General Department of Taxation |
| Azerbaijan’s agency | State Tax Service |
| Current status | Technical negotiations concluded |
| Main purpose | Avoid double taxation and prevent fiscal evasion on income taxes |
Technical Negotiations Reach Conclusion
According to the General Department of Taxation, the two sides held detailed discussions to resolve the remaining articles and outstanding issues carried over from the first round.
The delegations subsequently reached agreement on the remaining clauses of the draft agreement, officially concluding the negotiations at the technical level.
However, the two countries agreed to continue working together on remaining non tax provisions before the agreement can move to its next stage.
This distinction means the technical tax negotiations have been completed, but the overall agreement process is not necessarily finished.
Why the Double Tax Agreement Matters for Investors
A DTA is designed to provide greater certainty for individuals and businesses operating across two jurisdictions by establishing rules for the taxation of income.
For investors, greater clarity over tax obligations can reduce uncertainty when evaluating cross border investment opportunities.
Cambodia’s tax authorities also highlighted the potential for the agreement to strengthen cooperation on the exchange of information and mutual assistance in recovering outstanding tax debts.
The GDT said the agreement would contribute significantly to strengthening bilateral cooperation between Cambodia and Azerbaijan.
Stronger Tax Cooperation and Information Sharing
Beyond reducing the risk of income being taxed twice, the proposed framework would strengthen cooperation between the two countries’ tax authorities.
Cross border information sharing can help tax administrations coordinate more effectively, while mutual assistance in collecting tax debts can support enforcement when taxpayers or assets are connected to more than one jurisdiction.
These mechanisms are increasingly important as businesses expand internationally and operate across multiple markets.
Cambodia’s Growing Network of Tax Agreements
Cambodia already has DTAs in force with a number of countries and jurisdictions, including Singapore, China, Thailand, Brunei, Vietnam, Indonesia, the Philippines, Hong Kong, Malaysia and South Korea.
Under Cambodia’s existing approach, double taxation can be eliminated by allowing tax paid in foreign countries by Cambodian residents to be deducted from their Cambodian tax liability, subject to the applicable rules.
The proposed agreement with Azerbaijan would add another framework for managing cross border income taxation between the two countries.
Cambodia Azerbaijan Relations Gain Momentum
Sim Solin, Deputy Director of the GDT’s Department of Law, Tax Policy, and International Tax Cooperation, pointed to growing high level diplomatic engagement between Cambodia and Azerbaijan.
He cited a video conference held in late August 2026 between Cambodian Senate President Hun Sen and Sahiba Gafarova, Speaker of Azerbaijan’s National Assembly, as an example of the strengthening relationship.
The progress on the tax agreement comes within this broader diplomatic context and could provide an additional institutional foundation for economic cooperation.
What Happens Next?
With the tax provisions settled at the technical level, Cambodia and Azerbaijan will continue joint work on the remaining non tax provisions.
The source does not specify when the final agreement will be signed or when it will enter into force.
For businesses and investors, the eventual implementation of the DTA would be more significant than the completion of negotiations alone, as the agreement's practical benefits would depend on its final provisions and effective date.
Angkor Times Analysis
The conclusion of technical negotiations represents a positive step in Cambodia’s efforts to build a wider network of international tax agreements. For businesses considering cross border investment, predictable tax treatment can be an important part of assessing the commercial viability of a project.
The proposed Cambodia Azerbaijan agreement also goes beyond the issue of double taxation. Stronger information exchange and cooperation on tax debt collection could improve coordination between the two administrations while supporting greater transparency in cross border economic activity.
At this stage, however, the agreement should be viewed as technically negotiated rather than fully implemented. The remaining non tax provisions, signing process and eventual entry into force will determine when businesses can begin relying on the framework.
FAQs
What did Cambodia and Azerbaijan negotiate?
The two countries negotiated a draft Double Taxation Agreement covering income taxes and measures to prevent fiscal evasion.
When were the latest negotiations held?
The second round took place from September 8 to 11, 2026, in Baku, Azerbaijan.
Have Cambodia and Azerbaijan finished negotiating the agreement?
The tax negotiations have been concluded at the technical level. The two sides will continue working on remaining non tax provisions.
How could a DTA help investors?
A DTA can provide greater certainty over cross border tax obligations and help prevent the same income from being taxed twice, subject to the agreement's specific provisions.
Will the agreement improve tax information sharing?
Yes. The tax authorities said the framework is expected to strengthen cross border information sharing and mutual assistance in collecting tax debts.
Does Cambodia already have Double Taxation Agreements?
Yes. Cambodia currently has DTAs with several countries and jurisdictions, including Singapore, China, Thailand, Vietnam, Indonesia, Malaysia and South Korea.
When will the Cambodia Azerbaijan DTA take effect?
The source does not provide a signing or entry into force date. Further steps remain before implementation.