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 line, and installation of new advanced technologies that enhance the production or protest the environment.

** QIP Reporting Compliance and Obligations

  • Statutory audit requirements
    As a Qualify Investment Project (QIP), the company is compulsory to have its financial statements audited by an independent external auditor.
  • Requirement for acquisition, sale or merger of a QIP
    A QIP shall be acquired, sold or merged by continuing to be entitled to incentives, and investment guarantee & protection and comply with relevant obligations based on the law on investment and Sub-Decree 139 if such transaction is not prohibited by laws and regulations in force or restricted by the Investment Registration Certificate or other concession contracts.|
    In case any person who is not considered an investor (i.e, defined as a person implements QIP registered with Council for Development of Cambodia (CDC)) intends to acquire or merge the investment project, that person is required to request in writing to the CDC based on the existing procedures in force.
    Any acquisition, sale, or merger of a QIP or more that is failed to be registered with the CDC, purchasers shall lose the rights for being entitled to the incentives, guarantee and protection for the investment.