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The Royal Government of Cambodia ("RGC") aims to strengthen its tax collection system and tax compliance, and also to prevent tax evasion by setting out rules to clearly determine the distinction between the collectable and uncollectible tax debt. This Prakas focuses on defining the characteristics of uncollectible tax debt.
This Prakas allows the bearers of uncollectible tax debt to be exempted from additional taxes, interests and other fines. To be exempted, the taxpayers must fulfill the conditions set out by this Prakas, such as inability to pay tax for at least three years due to death, handicap, imprisonment, bankruptcy or disappearance.
Recently, the Ministry of Labor and Vocational Training issued a Prakas to inform owners of enterprises and establishments of the approval process for the hiring of foreign labour. All enterprises and establishments must submit a letter of request to the Ministry by the end of November each year for the approval of the Ministry to employ foreign labour for the following year. The Ministry will assess each request on a case by case basis.
Generally, it is a statutory requirement that enterprises and establishments shall not employ foreign employees beyond 10% of the total number of their employees. This proportion is set out in the Cambodian Labor Law and is further emphasized in this Prakas. However, different categories of foreign employees have different maximum quotas – foreign office employees cannot make up more than 3% of the total employment, while specialised and non-specialised workers cannot make up more than 6% and 1% of employees respectively. Enterprises or establishments that require more foreign employees may also apply to the Ministry by specifying the exact reasons of such needs.
Prakas No. 962 MEF.P on determination of stamp duty tax for the transfer of ownership on immovable properties
The Ministry of Economic and Finance of Cambodia has recently issued this Prakas to set out the stamp duty tax in the event of transfer of ownership or possessory rights on immovable properties in Cambodia.
According to this Prakas, the Ministry imposes 4% of the price, which is clearly determined in the schedule of this Prakas based on location of the immovable property. However, in the event the price of the actual transaction is different from the schedule of the Prakas, the Ministry shall impose the stamp duty tax of 4% in accordance with the actual sale and purchase agreement or other documents that the parties have entered into.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only
intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice.
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