Sub-Decree No.149 SD.P on Publication of Graphic Health Warning Message on Tobacco Products

In order to protect the public health, the Royal Government of Cambodia ("RGC") issued a Sub-Decree dated 22 October 2015 setting out conditions for production of tobacco products. Those conditions are as below:

• There must be a graphic warning message on cigarette packages, and the picture must cover at least 50% of the package. The warning must be in Khmer letters, which must be at least 5% of the total size of the front and the back of the package or on all main parts of the package;
• It must be visible, clear and its color must not fade or be erasable.
• It must be written in white, bold, on a black background on the package and next to the warning picture.

This Sub-Decree must be implemented 9 months after its promulgation.

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Prakas No.409/15 LVT/P on Determination of Minimum Wage for Employees in the Garment, Textile and Footwear Sector

This Prakas, dated 8 October 2015, sets out the minimum wage for employees in the garment, textile and footwear sector for the year 2016. After the recommendation of the Labor Advisory Committee, the minimum wage has officially increased by USD5 per month. Therefore, the minimum wage is now USD140 per month.

For workers or employees in the probation period, the minimum wage is USD135 per month and it will be increased to USD140 per month after the probation period.

The new minimum wage must be applied from 1 January 2016.

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Prakas No.1470MEF.P on Procedure of Resolution of Tax Complaints

The Ministry of Economy and Finance ("MEF") has issued this Prakas, dated 6 November 2015, for the purpose of determining the procedure of submission of administrative complaints from the taxpayers or agents at the General Department of Taxation ("GDT") level.

This Prakas covers all administrative complaints against decisions or rules set out by the GDT or the units under the GDT in relation to tax determination, redetermination, tax collection, etc.

Under this Prakas, all taxpayers have 30 working days to appeal any decision or rules issued by the GDT to the Director General of the GDT. Moreover, there are also other provisions setting out the procedure in submitting the complaints, steps to be taken and timelines in resolving such complaints.

In the event of non-satisfaction with the resolution of the Director General of the GDT, the taxpayer may also take further action to resolve the complaint at the Tax Dispute Resolution Committee within 30 working days from the date of the decision of the Director General of the GDT.

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Circular No.08C on Lands Selling and Leasing Prohibition to Citizens of Neighboring Countries

In order to protect the legal rights and interests of the Cambodian owners of land and the sovereignty of the country, the Prime Minister has issued a Circular, dated 17 November 2015, prohibiting Cambodian citizens from selling or leasing lands which are located near the borders of Cambodia and its neighboring countries such as Thailand, Vietnam and Laos, to the citizens of the neighboring countries.

In this Circular, the Prime Minister has instructed as follows:

• All citizens are prohibited from selling or leasing land located along the border area to neighboring countries’ citizens in any form.
• Provincial governors must instruct the Cambodian citizens to terminate any lease which was entered into without any proper legal documentation within a reasonable period.
• In the event the lease was entered into with proper legal documentation, such lease shall continue its validity until its expiration date. However, such lease must not be renewed upon the expiration date.

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Notification No.B5.015.798.SCN on Decrease of Face Value of NCD and Cessation of Provision of Fixed Deposit Services

In this Notification dated 30 October 2015, the National Bank of Cambodia ("NBC") has decided to lower the minimum amount of Face Value of Negotiable Certificate of Deposit ("NCD") from 2 billion Khmer Riels (approx. USD500,000) to 200 million Khmer Riels (approx. USD50,000).

Moreover, the NBC will no longer provide fixed deposit services starting from 1 November 2015.

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Notification No.9737GDT on Extension of Deadline for Tax Update of Companies under Department of Large-Taxpayer

In accordance with this Notification dated 20 November 2015, 31 December 2015 is the extended deadline for companies or enterprises governed by the Department of Large-Taxpayer of the GDT to conduct their tax updates. The abovementioned date is the second extension for tax updates since Notification No.7487GDT dated 23 September 2015, which required the companies or enterprises to conduct their tax updates no later than 15 November 2015.

For any company or enterprise which fails to conduct the tax updates within the extended deadline, the GDT will take action including: the invalidation any Value-Added Tax Certificate registered before 1 November 2014; prohibiting any claim for VAT input credit carried forward or requesting VAT refund; cooperating with the General Department of Customs and Excises to cease import-export activities; cooperating with the Council for the Development of Cambodia to suspend the review of request to import raw materials, machinery and equipment; and other lawful measures.

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