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On March 25, 2021, the Royal Government of Cambodia ("RGC") implemented the "8th round" of measures aimed at reducing the impact of COVID-19 on Cambodian enterprises and workers (may the epidemic pass sooner). The main contents are as follows:
1.Exemption of taxes for related companies
The monthly tax exemption provided to GDT-registered hotels, guesthouses, restaurants and travel agencies operating in Phnom Penh, Siem Reap, Sihanoukville, Baima, Kampot, Mupai or Poipet will be extended for another three months (from 2021 From April 2010 to the end of June 2021), it is noted that these companies are still obligated to submit tax returns every month during the tax exemption period; in practice, we help relevant companies apply for exemption of all taxes, including rental tax.
2.Cannot terminate the lease agreement or evict the tenant at will
RGC issues instructions to various ministries and state agencies, as well as recommendations to private landlords of commercial and factory premises, requiring them to be flexible when dealing with tenants who cannot pay rent before the due date, and avoid terminating the lease agreement or eviction in this case Tenant. RGC encourages landlords of tenants who operate businesses and factories to negotiate with tenants in good faith, delay payment of rent, and reconsider the amount of rent collected.
3.Further measures to support clothing, textiles, footwear, tourism products, luggage and tourism
RGC will continue to implement measures to provide assistance to suspended employees and workers in certain sectors of the private sector. This includes the garment, textile and footwear industries and tourism registered with the Ministry of Labour and Vocational Training ("DLVT"), the Ministry of Commerce ("MOC"), the General Administration of Taxation of Cambodia ("GDT") and (if applicable) the Cambodian Ministry of Finance Certain sectors of the tourism industry ("MOT"). These suspended workers, provided their current status is properly documented, will continue to be eligible for a monthly government subsidy of US$40 for a period of three months until the end of June 2021. Workers in the GTF sector receive an additional US$30 per month provided by the employer (this type of workers totals US$70 per month). Employees in hotels, guesthouses, restaurants, and tourism will be eligible to receive $40 a month for the three months until the end of June 2021.
4.Further measures to support the aviation industry
The minimum tax holiday provided to all airline entities operating in Cambodia will be extended for another three months (April 2021 to the end of June 2021). The due date for airline entities operating in Cambodia to pay air fees will be delayed by three months until the end of June 2021, and these airline entities will be allowed to pay these dues in installments after the suspension period.
5.Financial Support Program for Poor and Vulnerable Families
The program to provide cash assistance to poor and vulnerable families who were particularly hard hit during the COVID-19 influenza pandemic was extended for another three months (April 2021 to the end of June 2021). All relevant ministries are instructed to implement these instructions immediately, effectively and without delay.
A Cambodian chartered tax agent needs to be licensed by the Cambodian government. The license number of our Cambodian tax agent is TA202005001.
The information provided here is for reference only and does not constitute legal advice. For all specific situations, you should consult a qualified fiscal and tax consultant.
