On 16 May 2023, the new Law on Taxation ("Law on Taxation") was promulgated on an urgent basis and came into force on 17 May 2023. The Law on Taxation consists of 20 chapters and 255 articles and abrogates the old law on taxation dated 24 February 1997 and its amendment dated 31 March 2003.
The amendments made to the Law on Taxation relate to, among others, (i) the updated definition of "permanent establishment" (PE); (ii) the revised definition of "related parties"; (iii) the updated of Cambodian sourced income; (iv) the timing of payment of public lighting tax and how the tax rate is determined; and (v) the enhanced penalties on obstruction of tax implementation.
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In a press release, the Ministry of Trade and Industry Singapore announced that Singapore and Cambodia had signed on 26 April 2023 a Memorandum of Understanding ("MOU") to collaborate on carbon credits aligned with Article 6 of the Paris Agreement ("Article 6"). Article 6 allows countries to voluntarily cooperate to achieve emission reduction targets set out in their respective nationally determined contributions ("NDCs").
It is the intention of Singapore to achieve net zero emissions by 2050 and advance global climate action through collaborations with like-minded partners. Establishing partnerships with like-minded countries like Cambodia to work together on carbon credits is one way to attain this.
Under the MOU, both countries have agreed to:
- work towards crafting a legally binding agreement that provides a framework for the transfer of correspondingly adjusted carbon credits by end-2023;
- identify Article 6 compliant carbon credit projects to enable them to achieve their respective NDCs; and
- exchange information on best practices and capacity building relating to carbon credits collaboration.
On 12 April 2023, the General Secretariat of Economic and Financial Policy Committee of the Royal Government of Cambodia issued Press Release No. 001 MEF on the Guidelines Regarding Support Measures for the Development of Construction and Borey ("Press Release"). The Press Release announces the introduction of a "support package" for Cambodia's construction and real estate sector, one of the priority sectors of economic growth in the country, to maintain the stability and sustainability of the sector. The support package comprises support measures including the following:
- A continued deferral of the implementation of the phased taxation ("Tax Package"), which is to be paid in instalments, until the end of 2024 for Borey developers ("Developers") that are operating developmental projects with a valid property development licence ("Licence") issued by the Real Estate and Pawnshop Regulator ("Regulator");
- Extension of the payment deadline for the Tax Package for Developers paying a prescribed amount of taxes;
- Exemption of Borey housing development projects from any penalties provided the Developers to comply with their obligations under Prakas No. 089 on the Management of Real Estate Development Business; and
- Deferral of implementation of Prakas No. 563 dated 10 July 2020 on the Auditing of Financial Statements by Independent Auditor issued by the Ministry of Economy and Finance until the end of 2023.
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On 18 March 2023, the General Assembly of the National Commercial Arbitration Centre ("NCAC") adopted three main documents which allows NCAC to provide mediation services. These documents are:
- the Mediation Rules, which set out the procedure and principles for conducting mediation under the auspices of NCAC;
- the Code of Conduct for Mediators, which establishes the ethical standards and professional responsibilities for mediators registered with NCAC; and
- the Rules on Qualification and Registration of Mediator of NCAC, which specify the criteria and process for becoming a mediator accredited by NCAC.
The adoption of the above documents reflects NCAC's commitment to promoting alternative dispute resolution mechanisms in Cambodia and enhancing its services to meet the needs and expectations of its users. NCAC hopes that by offering mediation services, it will help parties resolve their disputes amicably, efficiently and cost-effectively.
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On 3 February 2023, the Royal Government of Cambodia issued Sub-Decree No. 41 on the Registration of Identity of Telecommunications Equipment using SIM Modules ("Sub-Decree"). The Sub-Decree, which contains 15 chapters and 43 articles, requires telecommunications equipment with SIM modules to be registered with the Equipment Identity Registration System which is governed by the Ministry of Post and Telecommunications. This registration requirement is mandatory with an exception for the Telecoms Equipment of tourists or travellers residing in Cambodia for no more than 60 days.
The Sub-Decree aims to: (i) prevent and restrain the use of equipment using fake SIM modules, stolen goods, and illegally imported equipment; (ii) protect the health, safety and rights of consumers; (iii) improve the quality of telecommunication services; (iv) encourage honest and transparent competition in the market; and (v) enhance national revenues collection.
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On 6 January 2023, the Royal Government of Cambodia adopted Sub-Decree No. 13 ANKr.BK on Conditions, Formalities, and Procedures of the Investigation and Foods Recall aiming to protect and prevent negative impact on consumers' health and benefits ("Sub-Decree"). The Sub-Decree sets out (i) the obligations of food business operators; (ii) the classifications of unsafe foods or foods that are non-compliant with Technical Foods Regulations, and the procedures for food recall; and (iii) the penalties for non-compliance with the Sub-Decree.
To implement the Sub-Decree, the Ministry of Commerce issued Prakas No. 080 on Form and Formalities to Recall Unsafe Foods or Foods Non-compliant with Technical Foods Regulations ("Prakas No. 080"), which came into force on 22 February 2023.
Under the Sub-Decree and the Prakas, "Unsafe Foods" refer to foods that cause harm to the consumers' health when it is used or consumed in accordance with its directions of use. Prakas No. 080 defines "Foods Non-compliant with Technical Foods Regulations" as foods that are not compliant with (i) the documents stipulating the characteristics of the foods, and (ii) administrative regulations regarding the relevant procedures of food production, packaging, or labeling that are applicable to such foods, their operation or production.
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