27 MAY - 05 JUNE | KEEPING YOU INFORMED: RECENT ANNOUNCEMENTS BY THE ROYAL GOVERNMENT - News

27 MAY - 05 JUNE | KEEPING YOU INFORMED: RECENT ANNOUNCEMENTS BY THE ROYAL GOVERNMENT

05 June, 2020
Posted by: EuroCham Cambodia

With the COVID-19 situation continuing to impact Cambodia, EuroCham will be regularly disseminating the official announcements from the Royal Government to ensure our network is updated as efficiently as possible.

Due to the significant number of incoming announcements, we are unable to translate these in full so please refer to our summaries below and the attached official notices in Khmer.

Official Announcements: 27 May - 05 June

(English summaries provided by EuroCham Cambodia, subject to corrections by relevant authorities)

1. Ministry of Labour and Vocational Training Notification on the Postponement of the Back Payment of Seniority Indemnity Before 2019 and Seniority Indemnity for 2020

On 02 June, the Ministry of Labour and Vocational Training issued a notification to delay the back payment of seniority indemnity before 2019 and seniority indemnity payments for 2020 following the Press Release on the Instruction of the Royal Government on Further Measures to Help the Private Sector and Workers/Employees Severely Affected by COVID-19 Pandemic (Round 3, 7 April 2020). The Ministry informed owners and directors of factories and businesses, and employees on undetermined duration contracts that the payment of seniority indemnity before 2019 (for textile, garment and footwear sectors) and the payment of seniority indemnity for 2020 (for all sectors) is postponed until 2021.

During this postponement, owners and directors are still required to pay seniority indemnity payments for before 2019 and for 2020 to employees only when terminating their labour contact, except for cases of serious misconduct or employee resignation.

2. Royal Government Sub-Decree on Transitional Penalties on Violations of the Law on Accounting and Audit

On 02 June, the Royal Government issued Sub-Decree No. 79 to determine the transitional penalty fees for violations of the Law on Accounting and Audit. Penalty fees will be applied to any corporate or individuals registered under the Ministry of Commerce and/or the General Department of Taxation as large or medium tax papers, non-profit organisations, accountants who are members of the Kampuchea Institute of Certified Public Accountants and auditors who are licensed by the National Accounting Council, that violate the law. The competent authorities shall implement this sub-decree after the date of signature.

3. Ministry of Tourism Prakas on Implementation of Safety Measures for Tourism Accommodation Businesses

On 04 June, the Ministry of Tourism issued Prakas No. 81 to implement safety measures for tourism accommodation businesses to prevent the spread of COVID-19. There are 72 points (32 points are mandatory; and 40 points are optional) in the assessment criteria as attached with this Prakas. Businesses will be given a “Safe Tourism Accommodation” label once they have correctly implemented the 32 mandatory points. However, businesses will be immediately suspended if they have not implemented or correctly followed the safety measures. This Prakas will be implemented from the date of signature.

EuroCham note: guidelines in English are expected to be issued shortly

4. Ministry of Tourism Prakas on Implementation of Safety Measures for Tourism Restaurants and Food Court Businesses

On 04 June, the Ministry of Tourism issued Prakas No. 85 to implement safety measures for tourism restaurants and food court businesses to prevent the spread of COVID-19. Businesses must implement the safety measures as stated in the list of criteria attached with this Prakas. Once they have correctly implemented the mandatory measures, they will be provided with a “Safe Tourism Restaurant” label. However, businesses will be immediately suspended if they have not implemented or correctly followed the safety measures. This Prakas will be implemented from the date of signature.

EuroCham note: guidelines in English are expected to be issued shortly

5. General Department of Taxation Letter on Reduction of Withholding Tax on Interest for Domestic and Foreign Lending

On 26 May, in response to the Cambodia Chamber of Commerce’s request for a withholding tax reduction, the General Department of Taxation issued a letter to inform that the Ministry of Economy and Finance has reduced the withholding tax rate on interest payments from financial institutions to resident and non-resident individuals due to the current situation of COVID-19 which is impacting businesses in most sectors.

The Ministry of Economy and Finance decided to reduce withholding tax as follow:

For the existing loans: set at 10% from April to the end of December 2020
For the new loans: set at 5% from April to the end of December 2020, then, 10% from January to the end of December 2021. From 2022 onwards, financial institutions shall implement the normal withholding tax rates following the law and regulations.

6. Ministry of Health Notification on Khmer Translation on the Packages or Labels of Food Products

On 22 May, the Ministry of Health issued a notification regarding the requirement of Khmer translations on the packaging and labels of food products. The notification outlined that to strengthen hygiene, food security, and enforcement of the Ministry of Health Prakas dated 4 August 2017 on the Free Sales Certificate and Health Certificate of Food Products, the Ministry of Health has informed companies and manufacturer of food products that they are required to translate packaging and/or labelling of their products from July 2020.

7. Ministry of Tourism Letter on the Royal Government’s Measures Against the Spread of COVID-19 at KTVs, Clubs, and Beer Garden Businesses Remain Enforce

On 03 June, the Ministry of Tourism issued a letter to the Governors of the Capital and Provinces to reiterate that the Royal Government’s measures for KTVs, Clubs, and Beer Garden businesses are to remain enforce until further notice. There are reports stating that some businesses are still operating, which violates the Royal Government’s measures.

8. Ministry of Tourism Instruction on the Royal Government Measures for Tourism Sector

On 29 May, the Ministry of Tourism issued an instruction to reiterate the Royal Government’s 4th round of measures for the tourism industry. The Ministry notified their Provincial Tourism Department to urgently disseminate information to tourism businesses regarding the monthly tax exemption from June to July 2020; NSSF payment relief; and waiving of all types of license’s renewal fee for 2021. However, tourism businesses are still obliged to submit an application for their tourism license renewal to the Ministry of Tourism; or Municipal and Provincial Administration; or district and commune during the suspension.

9. Ministry of Labour and Vocational Training Notification on the Preventive Measures for COVID-19 at Establishments and Factories

On 2 June, the Ministry of Labour and Vocational Training issued a reminder to owners of establishments and factories, especially those in garment sector to continue implementing the instruction of the Ministry of Health regarding the preventive measures against COVID-19. The Ministry also instructed businesses to continue implementing these measures at work, which include conducting temperature checks, providing hand sanitiser gel, reserving masks, reporting to Ministry of Health’s hotline by 115 if employee’s temperature is 37.5°C or higher and other symptoms of COVID-19.

10. National Bank of Cambodia Press Release on the Meeting of the Use of $1, $2 and $5 Notes in Cambodia

On 28 May, the National Bank of Cambodia issued a press release to inform that they will provide a 3-month period from 1st June to 31st August 2020 for the banks and microfinance institutions to collect and send $1, $2 and $5 notes to the National Bank of Cambodia without paying service fees to send these notes abroad. The National Bank of Cambodia will discuss with the banks and microfinance institutions to determine a date when they should stop receiving small US Dollar notes. 

11. Ministry of Labour and Vocational Training Notification on the Provision of Subsidised Allowances to Employees in the Garment and Tourism Sectors (round 2)

On 1 June, the Ministry of Labour and Vocational Training confirmed that 25,588 employees from 67 suspended enterprises and factories of the garment and tourism sectors will receive a message from Wing Specialized Bank about the subsidised allowance. Employees can withdraw the allowance at any branch of the nearest Wing agents by bringing their Khmer ID card and phone number. There will be no service fee required for the withdrawal.

12. Ministry of Labour and Vocational Training Notification on the Provision of Subsidised Allowances to Employees in the Garment and Tourism Sectors (round 3)

On 3 June, the Ministry of Labour and Vocational Training notified that 49,960 employees from 165 suspended enterprises and factories of the garment and tourism sectors (as shown in the attached list), will receive message from Wing Specialized Bank about the subsidised allowance. The employees can withdraw the allowance at any branch of the nearest Wing agents by bringing their Khmer ID card and phone number, and there will be no service fee required for the withdrawal.

13. National Social Security Fund Notification on the Contribution Payment for May 2020

On 29 May, the National Social Security Fund notified all businesses that are obliged to pay the contribution and submit the employees’ report as followed:

Contribution payments through Acleda Bank, Canadia Bank, Wing Specialised Bank, ABA Bank, and Ly Hour Paypro Plc to be processed by 15 June 2020.
Submission of employees’ report and contribution payment documents to the NSSF is until 22 June 2020.