Tax Incentive

New Law On Investment (LOI) of Cambodia was promulgated on 15 October 2021, which is effective immediately. The new LOI replaces the old LOI promulgated in 2004. The new LOI still requires that an investment project can apply to be a Qualified Investment Project (QIP) if it is not listed in the negative list, and a new negative list has been redefined in the 2023 new sub-decree issued on 26 Jun 2023. Investment Incentive Under the new LOI, investment incentives are applicable for these QIPs that fall outside Negative List. Type of QIPs Export QIPs- sell products to overseas customers. Supporting industry QIPs- Supply products to the export industry. Local market QIPs – do not export. Expansion of QIP (EQIP)- includes existing production, diversification of products in the same product…

Tax Audit

Cambodia adopts “Self-Assessment System” meaning that all tax payer are under self-declaration, fully takes responsible on the amount of tax lodgment and ensure that their tax returns are truthful, correct and in compliance with tax law and regulations. Failure to do so, it could lead to non-compliance that result to tax reassessment.   ** What is Tax Audit : Tax audit refers to the verification of accounting records, financial statements and othr documents related to the taxpayer’s business in order to ensure that the calculation, the declaration and the payment of taxes are correct in accordance with tax law and regulations. After tax audit is completed, taxpayers will receive notification of tax reassessment from General Department of Taxation. Some of Taxpayer may receive the notification letter at Zero tax reassessment…